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If you are planning to invest in mutual funds these days, then mid cap fund can be a good option. This fund category has given returns of more than 82% in the last 1 year. If you can take risk then investing in mid cap funds can give you good profits.
We are telling you about mid cap funds…
First of all know what are mid cap mutual funds
Mid cap mutual fund is a fund which mainly invests in shares of mid cap companies. Mid-cap companies are those with market cap more than Rs 5,000 crore, but less than Rs 20,000 crore. Companies ranked 101st to 200th in terms of market cap are also called mid-cap companies.
Invest only if you have the ability to take risk
Mid-cap funds carry more risk than large-cap funds. Therefore, only those people who can take more risk in their investments should invest in this fund. Apart from this, it is a good investment for the long term. In such a situation, if you want to invest for a long term i.e. more than 5 years, then you can invest in it.
You can invest 20 to 30% of the portfolio
According to experts, it would be right to invest 20 to 30% of the portfolio in this. That means, if you have a total of Rs 100 to invest, then you can invest Rs 20 to 30 in it. It will be beneficial to invest in this for long term.
It would be better to invest through SIP
Instead of investing money in mutual funds all at once, one should invest through Systematic Investment Plan i.e. SIP. Through SIP, you invest a fixed amount every month. This further reduces the risk, because it is not much affected by market fluctuations.
These mid cap funds have given better returns in the last years
| Fund Name | last 1 year returns | Average annual return in last 3 years | Average annual return in last 5 years |
| Quant Mid Cap Fund | 82.11% | 35.91% | 36.34% |
| Mahindra Manulife Mid Cap Fund | 68.69% | 29.96% | 29.06% |
| Nippon India Growth Fund | 60.72% | 30.53% | 27.07% |
| Motilal Oswal Mid Cap Fund | 58.82% | 37.69% | 29.34% |
| HDFC Mid-Cap Opportunities Fund | 58.68% | 29.82% | 26.41% |
Source: Grow, May 25, 2024
