Best Mid Cap Mutual Funds Based On 5 Year Sip Return October 2024

_{Published on: 02 Nov, 2024 06:11}

• Motilal Oswal Midcap Fund: Highest 5-year XIRR at 40.58%, Sharpe Ratio 1.89, moderate volatility.
• Quant Mid Cap Fund: 5-year XIRR of 35.74%, high Sharpe Ratio 1.35, higher volatility with max drawdown -11.98%.
• Edelweiss Mid Cap Fund: 5-year XIRR at 35.08%, moderate risk with Sharpe Ratio 1.32, max drawdown -12.36%.
• Nippon India Growth Fund: 5-year XIRR of 34.24%, balanced risk profile, max drawdown -10.18%.
• HDFC Mid Cap Opportunities Fund: 5-year XIRR 33.80%, strong Sharpe Ratio 1.52, low volatility with -9.43% max drawdown.

 

 

• Motilal Oswal Midcap Fund: Highest 5-year XIRR at 40.58%, Sharpe Ratio 1.89, moderate volatility.
• Quant Mid Cap Fund: 5-year XIRR of 35.74%, high Sharpe Ratio 1.35, higher volatility with max drawdown -11.98%.
• Edelweiss Mid Cap Fund: 5-year XIRR at 35.08%, moderate risk with Sharpe Ratio 1.32, max drawdown -12.36%.
• Nippon India Growth Fund: 5-year XIRR of 34.24%, balanced risk profile, max drawdown -10.18%.
• HDFC Mid Cap Opportunities Fund: 5-year XIRR 33.80%, strong Sharpe Ratio 1.52, low volatility with -9.43% max drawdown.

 

 

Mid Cap funds present an attractive investment avenue for investors looking to capture higher growth potential compared to large caps, with moderate risk levels. In this post, we explore the top-performing Mid Cap funds based on their 5-year XIRR, focusing on funds that have demonstrated consistent growth while maintaining reasonable risk profiles.

The 5-year XIRR (Extended Internal Rate of Return) serves as a benchmark for assessing long-term performance, providing insights into how a fund has performed through various market conditions. For Mid Cap funds, a strong 5-year XIRR suggests a fund’s ability to deliver high returns while managing the volatility typically associated with mid-sized companies. Let’s dive into the top Mid Cap funds based on this criterion.

 

• 5-Year XIRR: 40.58%
• Sharpe Ratio: 1.89
• Standard Deviation: 14.85%
• Max Drawdown: -9.07%

Motilal Oswal Midcap Fund leads the list with an impressive 5-year XIRR of 40.58%. This fund’s high Sharpe Ratio of 1.89 indicates its excellent risk-adjusted returns. While the standard deviation of 14.85% suggests moderate volatility, the max drawdown of -9.07% highlights its resilience. This fund is suitable for investors with a high-risk appetite aiming for significant growth in the mid-cap space.

• 5-Year XIRR: 35.74%
• Sharpe Ratio: 1.35
• Standard Deviation: 15.86%
• Max Drawdown: -11.98%

Quant Mid Cap Fund offers a robust 5-year XIRR of 35.74%, backed by a Sharpe Ratio of 1.35, reflecting good risk-adjusted returns. Its higher standard deviation indicates above-average volatility, and the max drawdown of -11.98% shows a degree of vulnerability during market downturns. This fund is ideal for aggressive investors seeking high returns despite a slightly higher risk profile.

• 5-Year XIRR: 35.08%
• Sharpe Ratio: 1.32
• Standard Deviation: 14.33%
• Max Drawdown: -12.36%

Edelweiss Mid Cap Fund, with a 5-year XIRR of 35.08%, offers a balance between returns and risk. The Sharpe Ratio of 1.32 suggests reasonable compensation for the risk taken, while the standard deviation of 14.33% indicates moderate volatility. The max drawdown of -12.36% makes this fund slightly more volatile than peers, suitable for investors willing to accept moderate risk for attractive returns.

• 5-Year XIRR: 34.24%
• Sharpe Ratio: 1.38
• Standard Deviation: 14.07%
• Max Drawdown: -10.18%

With a 5-year XIRR of 34.24%, Nippon India Growth Fund has demonstrated strong performance, accompanied by a healthy Sharpe Ratio of 1.38. Its standard deviation of 14.07% and max drawdown of -10.18% indicate controlled risk, making it appealing for investors seeking a balanced approach in the mid-cap segment. This fund is ideal for those who prefer stability with substantial growth potential.

• 5-Year XIRR: 33.80%
• Sharpe Ratio: 1.52
• Standard Deviation: 13.46%
• Max Drawdown: -9.43%

HDFC Mid Cap Opportunities Fund offers a solid 5-year XIRR of 33.80%, combined with a high Sharpe Ratio of 1.52, reflecting strong risk-adjusted returns. Its standard deviation of 13.46% is lower than some of its peers, and the max drawdown of -9.43% adds to its appeal for conservative investors. This fund is suitable for those looking for high returns with minimized volatility.

In addition to performance, assessing risk metrics is essential to understand the true value of these funds:

1. Sharpe Ratio: Reflects risk-adjusted returns. A higher Sharpe Ratio, like that of Motilal Oswal Midcap Fund (1.89), indicates efficient management of returns relative to risk.

2. Standard Deviation: Measures volatility. Lower standard deviation, as seen in HDFC Mid Cap Opportunities Fund (13.46%), indicates less fluctuation in returns, appealing to risk-averse investors.

3. Max Drawdown: Represents the maximum observed loss from a peak to a trough. A lower max drawdown, such as Nippon India Growth Fund’s -10.18%, provides an additional cushion during market downturns.

4. Value at Risk (VaR): Reflects potential losses in adverse scenarios. Funds like Quant Mid Cap, with a VaR of -19.24%, may experience larger losses under extreme market conditions, while those with a lower VaR, like Kotak Emerging Equity Fund at -15.39%, could offer more stability.

Selecting a Mid Cap fund requires balancing growth potential with risk tolerance. For investors with a high-risk appetite, Motilal Oswal Midcap Fund and Quant Mid Cap Fund offer high returns, albeit with a slightly higher risk profile. On the other hand, HDFC Mid Cap Opportunities Fund and Nippon India Growth Fund appeal to moderate-risk investors looking for stable returns with manageable volatility.

Each of these top Mid Cap funds has been evaluated for both returns and risk, offering a range of options for various investor profiles. By considering both the 5-year XIRR and risk metrics, investors can make well-informed decisions that align with their financial goals.