There were 29 schemes in the mid cap category. All the schemes in the category offered positive returns. HDFC Mid-Cap Opportunities Fund offered the highest return of around 16.07%, followed by SBI Magnum Midcap Fund (15.98%). Quant Mid Cap Fund offered the lowest return of 3.66%.
During January-June 2023, only nine schemes outperformed their respective benchmarks. This indicates 69% of underperformance by the mid cap schemes.
Quarterly performance
During April-June quarter in 2023, all the schemes in the mid cap category offered double-digit returns. The category offered an average return of around 15.84%. During this time period, the benchmark indices – Nifty Midcap 150 – TRI, Nifty Midcap 100 – TRI, S&P BSE 150 MidCap – TRI, and S&P BSE SENSEX – TRI – offered around 18.22%, 19.22%, 17.62%, and 10.41% return respectively.
During the quarter that ended in June, Taurus Discovery (Midcap) Fund was the topper. The scheme offered around 21.25% return, followed by HDFC Mid-Cap Opportunities Fund that offered 19.30%. PGIM India Midcap Opportunities Fund offered the lowest return of around 11.92%. All 29 schemes in the category offered more than 10% return.
During April-June, five mid cap schemes outperformed their respective benchmarks. That indicates 83% of underperformance by the schemes despite offering double-digit returns. However, only four schemes outperformed their respective benchmarks in both the horizons;19 schemes failed to beat their respective benchmarks in both the horizons.
As per AMFI data, during January-May 2023 (last available data), the mid cap category received a total inflow of Rs 8,560.27 crore. The asset under management for mid cap category as on May 31,2023 was Rs 2.04 lakh crore.
Note, the above exercise is not a recommendation. The main purpose of this exercise is just to find out how mid cap schemes performed in the first half of 2023. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal.
We considered the regular and growth options. The returns for January to June 2023 were calculated from January 2,2023 to June 30,2023. The quarterly returns for the quarter that ended in June 2023 were calculated from April 3, 2023 to June 30, 2023.
Mid cap schemes are mandated to invest in companies that are between 101 and 250 in market capitalisation, as per SEBI norms. One should invest in these schemes only if they have very high risk tolerance, a longer investment horizon of, say, seven to 10 years. A longer investment horizon would help investors to navigate the volatility better.
If you are looking for recommendations, see: Best Mid cap mutual funds to invest in 2023
