Despite Sebi's warnings about froth in the mid-cap space, mid-cap stocks have continued to rally in the last few months. Investors made handsome returns on their investments in mid-cap funds. 29 Mid-cap funds have offered an average return of 50.17 per cent returns in the last year.
Mid-cap schemes invest in mid-cap stocks or medium-sized companies' stocks. According to Sebi norms, mid-cap schemes invest in companies whose market capitalization is between 101 and 250 sized companies, which simply means that they invest in companies with growth opportunities and pose less risk than small-cap companies.
After Sebi flagged concerns about froth in mid-cap space, it ordered stress tests for funds. As per the recent stress results, the mid-cap funds would require 6.5 days on average, to liquidate 50 per cent of their portfolios. Here are the top 5 mid-cap funds based on their 3-year and 5-year returns.
1. Quant Mid Cap Fund
In the mid-cap fund category, Quant Mid Cap Fund become the front runner, with the highest 67.84 per cent return over the past year. If we take the top 5 funds in any tenures published on the Association of Mutual Funds of India (AMFI), this fund will be on the list. It delivered a solid 35.13 per cent (2nd place) and 35.02 per cent (first place) over the last three and five years, respectively.
2. Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund holds the second position among the top performers in the mid-cap segment, securing the highest three-year returns of 36.94 per cent. Over the past years, it gave 57.17 per cent returns. In 5 years, the fund holds the second spot in terms of returns.
3. Mahindra Manulife Mid Cap Fund
Mahindra Manulife Mid Cap Fund follows with a solid 62.18 per cent return in the past year, the third-highest return in the category. The fund is consistent in returns with 28.83 per cent and 28.14 per cent over the three and five years, respectively.
4. Edelweiss Mid Cap Fund
Though Edelweiss Mid Cap Fund is not a leader in terms of its last year returns, it delivered strong returns- among the top 5- in three and 5 years respectively. It returned of 27.23 per cent and 27.38 per cent over the three and five years, respectively.
5. Nippon India Growth Fund
Nippon India Growth Fund with a daily AUM of 26,490.18 crore gets into the top 5 list with its performance in three years. It showcased a commendable performance of returning 29.88 per cent to investors in three years, the third-best performance in the mid-cap category. The fund doesn't feature in the top 5 performances in the past year and last 5 years.
