From mint · Livemint · · 1m 30s
Experts recommend mid-cap funds via SIP route
Experts say mid-cap funds offer better long-term returns through SIP route.
In brief
Experts say mid-cap funds offer better long-term returns through SIP route. Experts recommend investing in mid-cap funds via systematic investment plans for better long-term returns. Originally reported by mint.
Mid-cap stocks attract investors
Experts say recent pullback in mid-cap stocks makes this category attractive at current levels.
Mid-cap funds focus on growth
Mid-cap funds invest in companies with above-average growth history and prioritize capital appreciation over dividends.
Nippon India fund example
Nippon India Growth Mid Cap Fund launched in 1995 with a lump-sum investment of ₹ 1,00,000 growing to ₹ 4.3 crore today.
Strong historical returns
The fund delivered a cagr of close to 22% over 30 years with no drops below face value of 10.
Recent fund performance
Top 3 mid-cap funds delivered 20% plus returns in last 5 years with Nippon India at 22.62%.
Expert opinion on mid-caps
Pankaj Mathpal says mid-cap funds outperform large-caps due to higher earnings growth trajectories.
Chokkalingam on market dynamics
G Chokkalingam notes aggressive buying of large-caps by domestic investors facilitates fii exits from large-caps.
Retail investor impact
New retail investors enter capital markets at 5 to 7 lakh per week focusing on small and mid-cap stocks.
Long-term mid-cap advantage
Mid-caps offer deep value stocks, growth stocks and acquisition opportunities for better long-term returns.
Vijayakumar on investment strategy
V K Vijayakumar recommends sip route for mid-caps to avoid peak valuations and maximize returns.
Here's the gist
Experts recommend investing in mid-cap funds via systematic investment plans for better long-term returns.
