Tuesday, 28 June 2016

Best 3 Equity Midcap Mutual Fund Churning Money For Investors

Best 3 Equity Midcap Mutual Fund to Invest via SIP in 2016

The mid and small cap fund category is indeed the most exciting of the lot. It adds a lot of zing to the portfolio and is capable of offering above-average returns when the markets are in uptrend. on the other hand, funds in this category are more prone to volatility as mid and small cap companies are hit harder when markets tank.

While there are many midcap funds available in the market ,it becomes practically difficult for investor to select funds to invest.
Apart from that many website and blogger provide an option like top 10 funds to invest as title header and after reading the post investor like you gets more confused. In order to overcome this confusion I only provide 3 best funds and i am invested in 2 of them mentioned below.

Midcap funds are risky and it is recommended for investor you are willing to take risk

Let us go ahead with the funds selection method

  • Alpha Ratio 
  • Rolling Returns calculation for 3 years 
  • SIP Returns 
  • Funds in existence from last 5 years 
  • CIRSIL, Morning Star & Value Research Ratings 
Must Read : Why Real Estate is and always was a Dull Investment

Below is the list of 3 best midcap funds

#1 : Mirae Asset Emerging Bluechip Fund 

Mirae Asset Emerging Bluechip Fund (MAEBF) gives investors the opportunity to participate in the growth of emerging companies which have the potential to be tomorrow's large caps/Bluechip companies. This fund invest in companies which are not part of the top 100 stocks by market capitalization and have market capitalization of at least 100 Crores at the time of investment.


3 Years Rolling Returns Compared to Benchmark 
Performance : If you would have invested Rs 1000 via SIP on 23/06/2011 as of now your investment would have 123329.18 with a CAGR of 29.30% , actually double your money

Rs 1,000 invested in the fund on 23/06/2011 would have grown to around Rs 2935 (compounded annualised return of 23.99 per cent) as on June 24 2016. A similar investment in the benchmark NIfty Free Float Midcap 100 would have grown to Rs 1738 (11.67 per cent).

Rolling returns for 3 years clearly indicates that fund has outperformed to benchmark fund and provided a return of more than 15% CAGR which makes this fund on top contender to invest in midcap 

The fund has performed well on a risk-adjusted basis as well. Sharpe ratio (which measures the excess returns over the risk-free rate per unit of risk) of the fund is at 1.54 and alpha of 19.93
This is a kind of fund which in-spite of high returns possess low risk as beta is .94  

Must Read : Best 3 Large Cap Mutual Fund to Invest in SIP
#2 : SBI Magnum Midcap Fund 

Objective of this fund is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of Midcap companies and believe me this fund is doing exactly as per the objective.
This fund is managed by Sohini Andani who also manages SBI Bluechip Fund which is ranked as #1 by CRISIL 

Let us see the returns for SIP for last 5 years 


Performance : If you had invested via SIP on 23/06/2011 as of now your investment would have 123030 , twice the money you invested via sip with a CAGR of 29.2%  

Rolling returns for 3 years clearly indicates that fund has outperformed to benchmark fund and provided a return of more than 15% CAGR which makes this fund as my best selection for midcap 

Must Read : If you have a slightly higher risk appetite and investment horizon of 18 to 24 months you can consider Credit Opportunities Fund

#3 : Franklin India Smaller Companies Fund

If you are seeking exposure to mid-cap stocks with steady and consistent performance can consider the Franklin India Smaller  Companies Fund. It will neither balloon during the bull market, nor will it under-perform during the bear market.
Although the fund invests primarily in high quality mid-cap stocks, it does have an exposure to large-cap stocks, which can offer some cushioning during turbulent times. 

SIP returns for last 5 years 
Rolling Returns for 3 year

Rs 1,000 invested in the fund on 23/06/2011 would have grown to around Rs  3022.18 (compounded annualized return of 25.29 per cent) as on June 24. A similar investment in the benchmark would have grown to Rs 1760 (11.96 per cent).

A monthly systematic investment plan (SIP) of Rs 1,000 for a period of five years (on a principal of Rs 60,000) would grow to around Rs 129036, delivering an annualized return of 31.22 per cent. 

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In case of any further explanation you can reach me on vipuls1979@gmail.com or tweet me  @vipuls1979

Disclaimer  :-

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