These actively-managed schemes are benchmarked against Nifty Midcap 100 – TRI, Nifty Midcap 150 – TRI, and S&P BSE 150 MidCap – TRI and these benchmarks offered an average return of 29.36%, 28.07%, and 26.29% respectively.
Top five schemes by AUM or assets
HDFC Mid-Cap Opportunities Fund, the largest actively-managed mid cap scheme that manages Rs 47,236.03 crore, offered 28.78% in 2023, beating its benchmark (Nifty Midcap 150 – TRI). Other large schemes in the category, Kotak Emerging Equity Fund, Axis Midcap Fund, Nippon India Growth Fund, and DSP Midcap Fund, failed to beat their benchmarks.
JM Midcap Fund was the topper in the category. It gave the highest return of 31.32%. Mahindra Manulife Mid Cap Fund offered 30.67%, beating its benchmark (Nifty Midcap 150 – TRI) by around 2% points. HDFC Mid-Cap Opportunities Fund offered 28.78%. PGIM India Midcap Opportunities Fund gave the lowest return of around 10.94% in 2023.
Quarterly performance
ETMutualFunds also looked at the performance of mid cap schemes in July-September quarter in 2023. The active schemes in the mid cap category have offered an average return of around 10.14% average return in July-September quarter in 2023, an analysis of returns showed. There were around 29 actively-managed mid cap schemes,15 schemes gave double-digit returns, and 14 schemes gave single-digit returns during the same period.
Out of 29 actively-managed mid cap schemes, only three schemes managed to outperform their respective benchmarks in the July-September quarter. This indicates that 26 schemes failed to beat their benchmarks, signaling 90% of underperformance by mid cap schemes in July-September quarter in 2023.
The actively-managed mid cap schemes are benchmarked against Nifty Midcap 100 – TRI, Nifty Midcap 150 – TRI, and S&P BSE 150 MidCap – TRI. Nifty Midcap 100 – TRI, Nifty Midcap 150 – TRI, and S&P BSE 150 MidCap – TRI gave 13.68%, 13.28%, and 12.64% respectively in the quarter that ended in September 2023. This shows that most mid cap schemes have failed to beat their benchmarks.
Quant Mid Cap Fund, the topper in the category, gave 15.85% in July-September quarter. JM Midcap Fund gave 14.60%, followed by Mahindra Manulife Mid Cap Fund which gave 14.11%. HDFC Mid-Cap Opportunities Fund, the largest scheme in the category based on assets managed, offered 10.95%. The scheme has failed to beat its benchmark in the July-September quarter. PGIM India Midcap Opportunities Fund offered only 3.88%.
Note, the above exercise is not a recommendation. The main purpose of this exercise was just to find out how mid cap schemes performed in 2023 so far. 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. Past performance does not guarantee future returns.
We considered the regular and growth options.
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
