Exploring Mid-Cap Funds for Long-term Growth

Just as ISRO's Chandrayaan-3 and Aditya-L1 missions have ignited India's pride in the realm of space exploration, our equity indices are also poised to reach new heights. The remarkable 7.8 per cent growth recorded in the April-June 2023 quarter has further propelled the equity market, reaffirming India's status as a beacon of hope in the global economy amidst looming threats of a global recession.

In times of economic upswing, the broader market tends to shine, and this is clearly evident in the robust performance of Mid-Cap dedicated funds. Over the past year, nearly all these funds, except one, have delivered double-digit returns, with a select few even surpassing the 30 per cent mark. To delve into the reasons behind this impressive performance and to determine whether investors should consider allocating a portion of their portfolios to mid-cap funds, we have dedicated the cover story of this edition to this very topic.

But what makes mid-cap funds an attractive choice? With a historical track record of outperforming Large-Cap funds in the long run, mid-cap funds are poised to potentially continue their strong performance. This makes them a compelling option for investors. Notably, over the past year, there has been a consistent inflow of investments into mid-cap funds on a monthly basis, reflecting sustained investor confidence in this category. Our story dissects the performance of mid-cap funds while also shedding light on the associated risks.

In another insightful feature, we delve deep into sectoral and thematic funds, unravelling the significance of these categories and their potential role in your core and satellite portfolio.

We trust that the stories in this edition will empower you to make more informed investment decisions. Your suggestions and feedback are always welcomed and valued. Please don't hesitate to reach out to us with your thoughts.

Shashikant Singh
Executive Editor