Compared to the large-cap mutual fund, the mid-cap and small-cap category of mutual funds offer greater growth potential. But, the investment in both the funds tends to be riskier and volatile.
Like, the year 2019 was a challenging year for both mid-cap and small-cap funds, due to slowdown in the economy. However, it was a great year for accumulation in the form of SIP, that will help you to reap benefits in the long term.
So, let’s now check some of the top mid-cap and small-cap funds for the year 2020.
Top 5 Mid-Cap Mutual Fund
The equity mid-cap mutual funds in the last 5 years and 10 years have given a return of 9.08% and 14.72% respectively, beating the large-cap mutual funds with a significant margin.
Following are the top 5 mid-cap mutual funds for 2020:
- Axis Midcap Fund
- Kotak Emerging Equity Fund
- DSP Midcap Fund
- Invesco India Midcap Fund
- L&T Midcap Fund
|AUM (in cr)||Expense Ratio||Standard Deviation||Beta||3yr/5yr/7yr/10yr Return (in %)|
|Axis Midcap Fund||Rs 4,818||1.99||13.10||0.71||17.06/11.22/17.98/-|
|Kotak Emerging Equity Fund||Rs 5,888||1.86||14.75||0.84||9.93/11.87/18.47/15.72|
|DSP Midcap Fund||Rs 6.957||1.95||14.62||0.82||9.02/11.85/18/15.68|
|Invesco India Midcap Fund||Rs 759||2.51||15.09||0.85||11.41/10.14/17.97/16.73|
|L&T Midcap Fund||Rs 5.992||1.95||15.22||0.87||8.24/11.03/19.17/15.07|
Top 5 Small-Cap Mutual Fund
If you have a risk appetite, then investing in small-cap mutual funds can give you greater growth potential than mid-cap funds. At cheaper valuation, small-cap give higher returns over 5-10 years. But, here you need constant monitoring of funds to check for any deviations and performance.
In the last 5 years and 10 years, the small-cap fund category has given a return of 8.65% and 12.94% respectively.
Following are the top 5 small-cap mutual funds for 2020:
- SBI Small Cap
- Axis Small Cap
- HDFC Small Cap
- Kotak Small Cap
- Nippon India Small-Cap
|AUM (in cr)||Expense Ratio||Standard Deviation||Beta||3yr/5yr/7yr/10yr Return|
|SBI Small Cap||Rs 3,156||2.26||18.66||0.85||13.78/14.43/23.97/19.24|
|Axis Small Cap||Rs 2,084||2.04||13.79||0.62||15.11/13.09/-/-|
|HDFC Small Cap||Rs 9,872||2.04||16.36||0.78||8.57/9.96/14.33/12.39|
|Kotak Small Cap||Rs 1,360||2.15||16.53||0.79||7.10/9.87/15.69/14.60|
|Nippon India Small-Cap||Rs 8,525||1.85||18.42||0.90||8.43/11.25/22.14/-|
Mid-cap and small-cap funds tend to closely follow the bullish and bearish trends of the economy. And, during a slowdown, these funds can significantly underperform and give a negative return during that period. However, in the long term, a well-managed fund offers handsome returns and outperform index and large-cap funds category by a huge margin.