The arrival of the new year 2021 is not the best time to invest in mutual funds. This is simply because the markets are at record levels and you cannot make money buying units of mutual funds at record levels. We suggest that investors consider investing small amounts as markets are at record levels. Below are 4 mid-cap mutual funds due to their strong ratings from Crisil and Value Research.
1) PGIM India Mid-Cap Opportunities Fund
This fund has a 5-star rating from Crisil and a 4-star rating from Value Research. The fund has performed well in recent years in terms of profitability. In fact, the fund generated huge returns of 56 percent last year, while its three-year return was 17 percent year-on-year.
The fund owns properties in Coforge, ACC, Dixon Technologies, NATCO Pharma, Cholamandalam, etc.
The minimum SIP investment required to initiate investment is Rs 500. The NAV of PGIM India's mid-cap opportunities under the growth plan is Rs 28.16. As the PGIM India Midcap Opportunities Fund offers impressive returns to investors, we suggest investors invest small amounts and possibly via SIP.
2) DSP Midcap fund
This fund is rated 5 stars by Value Research and 4 stars by Crisil. The fund invests primarily in medium-sized stocks, which tend to have volatile returns compared to larger stocks. The fund's top five positions include names like IPCA Labs, Cholamandalam, Infosys, Manappuram Finance, and Balkrishna Industries.
The fund provided a one-year return of 27 percent, while the five-year return on an annual basis is 14 percent. The DSP Midacp fund has now invested approximately 91.7 percent in stocks, while keeping the rest in cash. The fund can also be invested through the SIP path, where the minimum investment is Rs 500 and the additional investment is Rs 500 each month. This long-term fund has the potential to generate good returns.
3) Invesco India Midcap Fund
This fund has been rated a "5" star by Crisil. Even Value Research gave the fund a very good 4-star rating. In the past four years, Invesco India Midcap Fund achieved returns of 13 percent year on year. In fact, its seven-year annual return is 19.53 percent, which is surprising.
Invesco India Midcap Fund has invested approximately 95.4% in shares and the cash balance is maintained. Invesco India Midcap Fund holds stakes in high-end mid-cap stocks, including companies such as Coromandel International, Balkrishna Industries, Apollo Hospitals, Mphasis, ICICI Bank, etc. If you are a long-term investor, this fund could be a good bet, although the NAVs of the growth plan have risen dramatically in recent months in line with the markets.
4) Kotak Emerging Equity Fund
This is another box rated 4 stars by Value Research. The Kotak Emerging Equity Fund reported returns of 27 percent last year, in line with the strong bullish movement in the markets.
The Fund has assets under management amounting to Rs. 8,600 crore. Almost 99 percent of the money is invested in stocks, which is not very positive when the markets are at record levels.
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