Best Mid-Cap Mutual Funds for SIP Investment in 2023: A Comprehensive Guide

Investing in mutual funds can be a powerful way to grow your wealth over both the short and long-term. One strategy that many investors utilize is Systematic Investment Plan (SIP), where a fixed amount is invested regularly into a mutual fund. When it comes to mid-cap funds, these offer an interesting mix of growth potential and volatility compared to large-cap funds. In this article, we will explore some of the best mid-cap funds for SIP investment, backed by data and expert opinions.

Understanding Mid-Cap Funds

On the stock market, companies are categorized into three major classes based on their market capitalization:

Large caps: Companies with high market capitalization. Mid caps: Companies with medium market capitalization. Small caps: Companies with low market capitalization.

A mid-cap fund is a mutual fund that primarily invests in mid-cap companies. While these funds are generally riskier than large-cap funds, they have the potential to offer higher returns over the long term.

Top Mid-Cap Mutual Funds for SIP

Several mid-cap mutual funds have stood out in recent market conditions and are recommended for SIP investments. Here are some of the top mid-cap mutual funds:

No. 1: LT Mid-Cap Fund Direct Plan

The LT Mid-Cap Fund Direct Plan is a standout with impressive returns. Over a five-year SIP period, it has delivered a remarkable 22.42% return, the highest among mid-cap funds.

No. 2: Kotak Emerging Equity Scheme Direct Plan

The Kotak Emerging Equity Scheme Direct Plan is another notable choice. It has reported a 5-year SIP return of 20.93%, making it a solid option for investors seeking growth.

Both these funds have been rated as five-star funds by Value Research, which indicates they are among the best in their class.

Other Notable Mid-Cap Mutual Funds

For your consideration, here are some additional mid-cap mutual funds that have shown consistent performance:

ICICI Prudential Mid Cap Fund Axis Mid Cap Fund Mirae Asset Emerging Bluechip Fund Aditya Birla Pure Value Fund DSP Blackrock MidCap Fund

Why Mid-Cap Mutual Funds?

Mid-cap mutual funds offer investors the potential for higher returns than large-cap funds, due to their exposure to companies that are usually in the growth stage. Investing in mid-cap mutual funds can be particularly rewarding if you are looking to build wealth over a period of 7-10 years. However, it's crucial to be aware of the higher risks involved, which can lead to potential losses of up to 70% during market recessions. Therefore, these funds are best suited for investors with long-term financial goals where they can hold the investments over a significant period of time.

Conclusion

Choosing the right mid-cap mutual fund for your SIP investment is essential to ensure that your money is put to good use. By carefully analyzing the historical performance, ratings, and risk profile, you can make an informed decision. Always remember to consult with a financial advisor before making any investment decisions. Happy investing!

Disclaimer: Mutual fund investing carries market risk. Consult a professional before making any investment decisions.