The Best Mid-Cap and Small-Cap Mutual Funds to Invest in 2020
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.
