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.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
- 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.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- 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 personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
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 ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 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 condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 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 who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new 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 side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization 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: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)