Last Updated on January 30, 2020 at 12:00 pm
Only six midcap mutual funds (direct plan) managed to beat Nifty Midcap 150 TRI (dividends included) in the last five years (six becomes four if we consider regular plans). Let us take a look at how midcap funds performed in comparison to this index in the last 1,2,3,4 and 5 years.
Please note we do not recommend these funds. This data is only for one particular window in time. To analyse performance consistently, the reader can consider using the Jan 2020 Equity Mutual Fund Performance Screener. The aim of this study is to point out that even in the large cap space beating the index is not as easy as it seems.
As on Jan 29, 2020, only the following six funds (out of a total of 22) managed to outperform Nifty MIdcap 150 TRI over the last five years (trailing). These funds also outperformed the index over 1, 2 and 3 years.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
- Kotak Emerging Equity Fund
- Sahara Midcap Fund
- DSP Midcap Fund
- Axis Midcap Fund
- L&T Midcap Fund
- Invesco India Midcap Fund
The full list of funds and their five-year returns are shown below. The index returns are shown in blue and category average and median in red.
| Scheme Name | 5 Years |
| Kotak Emerging Equity Fund | 12.46 |
| Sahara Midcap Fund | 12.15 |
| DSP Midcap Fund | 11.89 |
| Axis Midcap Fund | 11.51 |
| L&T Midcap Fund | 11.41 |
| Invesco India Midcap Fund | 11.27 |
| Nifty Midcap 150 – TRI | 10.04 |
| Motilal Oswal Midcap 30 Fund | 10.00 |
| Edelweiss Mid Cap Fund | 9.83 |
| Tata Mid Cap Growth Fund | 9.74 |
| Franklin India Prima Fund | 9.56 |
| Taurus Discovery (Midcap) Fund | 9.55 |
| Category Median | 9.55 |
| HDFC Mid-Cap Opportunities Fund | 9.54 |
| BNP Paribas Mid Cap Fund | 9.48 |
| Category Average | 9.16 |
| Nippon India Growth Fund | 9.04 |
| Sundaram Mid Cap Fund | 8.65 |
| SBI Magnum Midcap Fund | 7.93 |
| Aditya Birla SL Midcap Fund | 7.68 |
| ICICI Pru Midcap Fund | 7.68 |
| UTI Mid Cap Fund | 7.30 |
| Quant Mid Cap Fund | 6.87 |
| PGIM India Midcap Opp Fund | 6.29 |
| Baroda Mid-cap Fund | 1.77 |
Nifty Midcap 150 TRI returned – 3.29% over the last two years (trailing). During this period 18 out of 23 funds managed to do better. Out of this 18, 10 of them managed a positive return. Over the last year (trailing) 16 out of 24 funds managed to beat the index.
The poor performance of the category over five years in spite of this recent recovery is notable. Few funds may have changed nature after the SEBI categorization but even then the outperformers are relatively few. Finally over the last three years (trailing), only 10 out of 23 funds managed to get a return better than the Nifty Midcap 150 TRI index
Does this mean we can consider passive investing in the midcap space? We have three ETFs and one index fund – Motilal Oswal Nifty Midcap 150 Index Fund (Should you invest?) – in this space.
However, none of them has been seriously tested during a big market crash or liquidity crunch in midcap stocks. An actively managed midcap fund has the freedom to hold up to 20% of large cap stocks and these can effectively act as “liquid cash” in case of redemption pressure. In addition, active midcap funds have done well during the last two years (when the index fell by – 3%). Such downside protection would be missing in a midcap index or ETF. Thus I would recommend those eager to invest passively in midcap stocks to wait and watch a little bit longer.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
Use our Robo-advisory Tool to create a complete financial plan! More than 3,000 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
🔥Join our community of 9000+ users! 🔥Avail massive discounts on our courses + freefincal investor circle!
Track your mutual funds and stock investments with our Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds, ETF screeners, as well as momentum and low-volatility stock screeners.
You can follow our articles on Google News
We have over 1,000 videos on YouTube!
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth!
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalised investment advice. We can write a detailed article without mentioning your name if you have a generic question.
About The Author
Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 14 years of experience publishing news analysis, research and financial product development.
Connect with him via Twitter(X) LinkedIn YouTube
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
Our book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Connect with us on social media
Our publications
You Can Be Rich Too with Goal-Based Investing
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
Your Ultimate Guide to Travel
