Introducing Mid Cap Mutual Funds
In a world full of risks, everyone wants stability. Have you heard the saying, ” Strengthen Your Future Growth with Best Mid Cap Mutual Funds“? If yes, then let’s examine the different aspects related to it.
The mid cap funds lead you to secure your future by making your growth potential strong. These funds invest in companies that have a market capitalization above Rs. 5000 Crores and below Rs. 20,000 Crores.
The investing journey is all about how you well you adjust according to the market traits. These mutual funds have a moderate risk profile giving you a higher potential to stand out in the market.
Furthermore, mid-cap companies provide less of a risk than small-cap companies. This brings you a balanced blend of potential risks and returns. Moreover, the regular monitoring of experts makes investments to grow over time.
With the selection of top-performing mid cap funds, investors can achieve long-term benefits. The promising nature of mid cap funds provides you with good consistency of earnings.
What are the Features of the Best Mid Cap Mutual Funds?
The best mid cap mutual funds offer you a blend of growth and stability. Let’s explore the features associated with these mutual funds:
High-Growth Potential
The mid cap firms have innovative solutions with growth prospects. These firms are fundamentally strong to achieve goals. Hence, investing in these firms brings you a growth potential that goes on for a long time.
Diversification
These types of mutual funds invest in mid-cap firms across various sectors. This approach spreads risks and balances your portfolio, resulting in a diversified investment.
Liquidity
The mid cap firms have easy liquidity compared to the small cap firms. That means you can easily buy units when the market is low and sell units when the market is high. Consequently, it benefits you with a good income.
Professional Management
The mid cap funds are managed by an expert and skillful team. The team analyzes the market trends and makes investment allocations based on them. They are responsible for making strategies for you that fulfill your financial goals.
Tax Efficiency
The long-term gains have lower rates of taxes than the short-term gains. This brings the advantage of lower taxes for long-term investments in mid cap firms. Hence, it increases your chances of good earnings.
Investment Methods
The mid cap firms have the availability of different investing methods. These methods are based on investors’ risk tolerance and financial goals. This includes the lumpsum investing route and systematic investing plan route.
With the appealing features of the mid cap funds, it is also essential to check the other side of these funds. Let’s explore this factor in the next section.
What are the Drawbacks of the Best Mid Cap Mutual Funds?
While the best mid cap mutual funds give you attractive returns. Unlike other mutual funds, it is also associated with some risks:
Market Volatility
The market is associated with unavoidable risks. Hence, the fluctuations in the market impact the performance of the firms. The underperformance of firms leads to an impact on the funds’ performance. As a result, the economic downturns in the funds bring you low earnings.
Expense Ratio
The expense ratio of mid cap firms is more costly than the large cap firms. Market analysis and strategy making is time-consuming and also costly. As a result, it will show an impact on your net earnings.
Fund Manager Expertise
Investment allocation is a crucial part of investing. The performance of mid cap funds depends on the skill and knowledge of the fund manager. In this case, the wrong allocation of investment can directly impact your net income.
Concentrated Risk
These funds address only the mid cap firms of the market across various sectors. In this case, the firms are performing against the market. As a result, this will significantly affect the funds and lower your earnings.
Less Liquidity
The mid cap firms are less liquidated than the large cap firms. This factor impacts your earnings during the economic downturns of the market.
It is important to consider these drawbacks while investing in mid cap funds. Let’s explore the top performing mid cap funds of the market.
Which are the 5 Best Mid Cap Mutual Funds?
Here are the 5 best mid cap funds that you can choose for your long-term growth:
1. Motilal Oswal Mid Cap Fund
This scheme was launched in the year 2014 on February 02. The scheme aims to generate high earnings by investing in mid cap firms. The scheme has given a total return of 25.06% since its launch. Moreover, Mr. Sunil Sawant has managed funds of Rs. 20,055.68 Crores since the scheme started.
2. Invesco India Mid Cap Fund
The scheme was started on April 19, 2007, to provide you with good earnings. In addition, the scheme has a total AUM (Asset Under Management) of Rs. 5,624.96 Crores. Also, the scheme has given a good return of 17.55% since its launch. Furthermore, the investments in the scheme are managed by Mr. Vinay Paharia.
3. HSBC Mid Cap Fund
The scheme has been running since August 09, 2004. Also, the scheme is managed by Mr. Ankur Arora. With his efforts and knowledge, the scheme is monitoring investments of Rs. 18.706 Crores. Moreover, it has given a return of 20.0% since its launch.
4. Edelweiss Mid Cap Fund
The scheme was launched by Edelweiss Mutual Funds on December 26, 2007. The scheme has a total AUM (Asset Under Management) of Rs. 7,677.01 Crores. With the effort of teamwork work, the scheme has performed well with returns of 14.68% since its launch.
5. ITI Mid Cap Fund
This scheme was launched by ITI Mutual Funds on March 05, 2021. With the guidance of Mr. Pradeep Gokhale, the scheme has given a return of 23.11 % since its launch. Furthermore, the scheme is managing investments of Rs. 1,109.96 Crores.
With the brief information about the top performing mid cap funds. You can easily choose to invest in the mid cap funds. Let’s conclude the discussion on these funds.
Final Note
To sum up, this type of mutual fund brings you the duo of stability and growth. With the pinch of moderate risks, it gives you strong growth potential. You can reduce these risks by investing through the SIP route. Whether you belong to an average-income profession or want to invest regularly it is suitable for all.
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