First of all let us understand how the Midcap Mutual Funds work? Well, Midcap Mutual Funds are those funds which invest mainly in the Midcap Companies of the Stock Exchange. They do invest in Large Cap companies but their main objective is to focus on Midcap Companies.
Why Midcap Mutual Funds? -
Investors prefer Midcap Mutual Funds because of the higher Growth potential. During the up market, Midcap mutual funds are the Best performers and appreciates much faster than Large cap funds. And that’s why Investors Invest in Midcap Mutual Funds to add aggression in their Portfolios.
In year 2006, Midcap Funds like Sundaram Select Midcap & Prudential ICICI Emerging start had given 111% & 114% returns. And since than Midcap Mutual funds are in lime light.
Caution -
However, Midcap Mutual Funds also go down severely during the down market. So it is advisable that, anyone’s Core Portfolio (60-70%) should be of Large Cap Funds. You can add 10-30% of Midcap funds to add a little but aggression in your portfolio but Don’t invest everything in Midcap Funds.
Best Midcap Mutual Funds India -
The following are the Best Midcap Mutual Funds of India. All of the following funds are more than 5 years old and having a good record of past performance. All of these funds are my all time favourite funds. Investment in the following funds is worth it.
01) SBI Magnum Global Fund
02) Sundaram Select Midcap Fund
03) Reliance Growth
04) Birla Mid-cap
05) Franklin India Prima
However, there are several other mid cap mutual funds in India but the above are the Top 5 Midcap Mutual Funds of India having a strong past record of Outstanding performance.
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