These top performing mid-cap funds can be part of your MF portfolio

It has been researched and proven time and again that investors have a bias, while selecting mutual funds for investments, towards recent returns delivered by the fund. Investors are well advised not to focus only on one month, six months and one year’s returns when it comes to picking a mutual fund scheme.

Clearly the mid-cap stocks and small-cap stocks are the flavour of the market for the institutional players including FPIs. There is limited growth and earnings visibility in the large-cap stocks as reflected in the index i.e Sensex returns over past one year. There are concerns over valuations and the earnings growth has disappointed in recent few quarters with the Q2 earnings season also reflecting a mixed trend.

BNP Paribas Midcap fund, HDFC Mid-cap Opportunities Fund, Invesco India Mid-cap Fund and Mirae Asset Emerging Blue-chip Fund are the top funds in the mid-cap category that have consistently delivered returns in excess of 25 per cent per annum for a period of both 3 years and 5 years. Such phenomenal returns over longer term brings in lot of confidence for investors.

A sound MF portfolio can have any or all of these mid-cap funds in appropriate weightages.