Top Midcap and Smallcap Mutual Funds by Lump Sum Investment Returns
Investing in midcap and smallcap mutual funds can be a lucrative strategy for long-term wealth creation. These funds invest in medium and small-sized companies, offering high growth potential but also higher risk. If you are considering a lump sum investment, it is essential to choose funds with strong historical performance and consistent returns.
Understanding Midcap and Smallcap Mutual Funds
- Midcap Funds: Invest in companies ranked between 101 and 250 in market capitalisation.
- Smallcap Funds: Focus on firms ranked beyond 250, offering higher growth but greater volatility.
Top Performing Midcap and Smallcap Funds
Some of the best-performing funds based on lump sum investment returns include:
- Midcap Funds:
- Nippon India Growth Fund
- HDFC Mid-Cap Opportunities Fund
- Axis Midcap Fund
- Smallcap Funds:
- SBI Small Cap Fund
- Nippon India Small Cap Fund
- Kotak Small Cap Fund
Factors to Consider Before Investing
- Past Performance: Look at 3- to 5-year returns for consistency.
- Expense Ratio: Lower costs enhance returns over time.
- Risk Appetite: Smallcap funds carry higher risk than midcaps.
- Fund Manager’s Expertise: An experienced manager ensures better fund stability.
Investing in midcap and smallcap funds via lump sum can be rewarding if aligned with your risk tolerance and financial goals. Always review performance and market conditions before making a decision.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.