Mid-small cap funds category seeks to generate capital appreciation from a diversified portfolio of equity and equity related instruments by following a value investment strategy. The funds in the category invest largely in small and mid-cap companies that are trading at a considerable discount to their intrinsic value.
SEBI’s Definition of Mid-Small Cap Funds
- Mid Cap Fund:
- Scheme Characteristics: Minimum investment in equity & equity related instruments of mid-cap companies – 65% of total assets
- Uniform Description: An open-ended equity scheme predominantly investing in mid-cap stocks
- Small-cap Fund:
- Scheme Characteristics: Minimum investment in equity & equity related instruments of small cap companies – 65% of total assets
- Uniform Description: An open-ended equity scheme predominantly investing in small-cap stocks
#1 Mid-Small Cap Funds: Axis Midcap Fund – Growth
– Reg – Growth
Axis Midcap Fund plan seeks to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies. The fund is ably managed by Shreyash Devalkar since Nov 2016 and has generated over 7% returns during the past five years.
The fund is five-star rated and is a great option for investors looking to invest over a horizon of over 5 years.
#2 Mid-Small Cap Funds: Franklin India Prima Fund – Direct – Growth
Franklin India Prima Fund’s primary objective is to provide medium to long term capital appreciation and the secondary objective is to generate income. The fund is managed by R. Janakiraman since January 2008. The fund has generated over 12% returns in the last 10.
The fund has investments in relatively smaller, faster growing companies. It is best for investors who seek to invest for a term of over 4 years.
#3 Mid-Small Cap Funds: Invesco India Mid Cap Fund – Direct – Growth
Invesco India Mid Cap Fund is a five-star rated fund that seeks to generate capital appreciation by investing predominantly in Mid Cap companies.The fund has generated healthy returns consistently under the leadership of Pranav Gokhale who managed the fund since March 2018.
The fund has generated around 5% returns in the past five year period and is expected to resume it’s performance streak once the Covid crisis subsides.
#4 Mid-Small Cap Funds: DSP Midcap Fund – Direct – Growth
The fund has generated over 8% returns over the five year period and is likely to continue with its performance streak over the long term post Covid-19, backed by its performance first approach.
#5 Mid-Small Cap Funds: Kotak Emerging Equity Fund – Direct – Growth
Kotak Emerging Equity Fund scheme aims to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies. The scheme may also invest in debt and money market instruments, as per the asset allocation table.
The fund is managed by Pankaj Tibrewal since June 2010 and has generated over 5% returns over the five-year period.
#6 Mid-Small Cap Funds: HDFC Mid-Cap Opportunities Fund – Direct – Growth
HDFC Mid-Cap Opportunities Fund is a remarkably consistent performer in its category and has a mid-cap tilt to its portfolio. The fund has generated over 4% returns over the five year period and is ably managed by Chirag Setalvad since May 2007.
The fund performance has been adversely affected during the Covid crisis but it is to come back on track once the market situation restores. It is expected to continue its record over the long term backed by strong bottom-up stock selection method adopted by the fund manager.
#7 Mid-Small Cap Funds: L&T Midcap Fund – Direct – Growth
L&T Fund is a four star rated fund that aims to generate capital appreciation by investing primarily in midcap stocks. The fund has generated considerably returns of over 6% during the five-year period. The fund is ably managed by S.N Lahiri since June 2013.
The fund is likely to restore it’s performance given its mid-cap bias, once the market situation improves. It is great option for investors looking to invest for over 4 years.
#8 Mid-Small Cap Funds: SBI Small Cap Fund – Direct – Growth
SBI Small Cap Fund aims to generate long term capital growth by investing predominantly in a well diversified basket of equity stocks of small cap companies.
The fund is managed by R.Srinivasan since November 2013 and has managed to give an impressive show even after the Covid crisis, generating over 9% returns during the past five-year period.
Our Approach to Evaluating Best Mid-Small Cap Funds:
We have evaluated based on both qualitative and quantitative factors such as returns, fund size, fund managers, the reputation of fund house, and investment philosophy. Here is our analysis:
|Mid-Small Cap||Fund Size
|Annualized Return %|
|1 Year||3 Years||5 Years||10 Years||Since Inception|
|Axis Midcap Fund||36.93||5098.37||-0.30||8.47||7.77||_||15.03|
|Franklin India Prima Fund||794.1197||6060.75||-18.54||-4.36||3.73||12.09||17.89|
|Invesco India Mid Cap Fund||45.64||747.09||-7.18||1.81||5.94||13.52||12.21|
|DSP Midcap Fund||52.08||6487.64||-5.13||0.03||8.25||12.70||12.94|
|Kotak Emerging Equity Fund||33.888||5911.85||-13.78||-2.46||5.87||11.83||9.67|
|HDFC Mid-Cap Opportunities Fund||45.219||18455.19||-18.51||-4.59||4.04||12.83||12.32|
|L&T Midcap Fund||114.09||5366.51||-14.72||-3.81||6.06||12.16||16.61|
|SBI Small Cap Fund||46.8993||3280.3||-12.08||2.62||9.58||16.30||15.32|
Good for you investment 🙂 If you have any questions, feel free to ask in the comments.