Fund of Fortnight

This is our mutual fund recommendation. Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.

Reason for recommendation 

Mid-Cap indices have been one of the best performing indices in the last four months. Even the funds dedicated to such category have been among the best performing across all the categories. Therefore, our recommendation for this issue comes from this category and our choice is Mahindra Manulife Mid-Cap Fund. The fund has demonstrated strong returns across various time periods. 

Over the past month, the fund achieved a return of 2.84 per cent, slightly surpassing the category average of 2.25 per cent. The trend continued over a six-month period with the fund’s returns of 21.93 per cent exceeding the category average of 18.78 per cent. Similarly, over the past year, the fund generated a return of 23.91 per cent, surpassing the category average of 20.19 per cent. These results demonstrate the fund’s consistent ability to outperform its peers and generate strong returns for investors. Analysing the sectoral allocation and portfolio composition of the fund, it is evident that it maintains a well-diversified portfolio that consists of 63 stocks with the top 10 stocks representing 26.78 per cent of the total holdings. The top five stocks account for 15.44 per cent of the portfolio and the top three stocks comprise 10.2 per cent of the holdings. 

The largest sectoral holding is in financials, constituting 16.72 per cent of the portfolio, followed by capital goods at 13.4 per cent and healthcare at 9.98 per cent. This sectoral diversification suggests that the fund is well-positioned across various industries, which can potentially provide stability and opportunities for growth. The fund has consistently delivered strong returns with its diversified sectoral allocation and well-managed portfolio contributing to its impressive performance. Investors seeking a fund with a track record of outperforming its peers and a diversified portfolio across sectors may find this one an attractive investment option.