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 Beta3yr/5yr/7yr/10yr Return (in %)
Axis Midcap FundRs 4,8181.9913.100.7117.06/11.22/17.98/-
Kotak Emerging Equity FundRs 5,8881.8614.750.849.93/11.87/18.47/15.72
DSP Midcap FundRs 6.9571.9514.620.829.02/11.85/18/15.68
Invesco India Midcap FundRs 7592.5115.090.8511.41/10.14/17.97/16.73
L&T Midcap FundRs 5.992 1.9515.220.878.24/11.03/19.17/15.07

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 RatioStandard DeviationBeta3yr/5yr/7yr/10yr Return
SBI Small CapRs 3,1562.2618.660.8513.78/14.43/23.97/19.24
Axis Small CapRs 2,0842.0413.790.6215.11/13.09/-/-
HDFC Small Cap Rs 9,8722.0416.360.788.57/9.96/14.33/12.39
Kotak Small CapRs 1,3602.1516.530.797.10/9.87/15.69/14.60
Nippon India Small-CapRs 8,5251.8518.420.908.43/11.25/22.14/-

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.

Top 10 Large-Cap Mutual Funds to Invest in 2020

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