Mid-cap funds with best returns in last year

The last year saw a major upsurge in the equity market owing to which the frontline indices have generated a return of over fifty per cent. Nevertheless, broader market indices have generated returns even better than frontline indices. Mid-cap and small-cap indices generated returns above 70 per cent and 80 per cent respectively in the same period. 

21 mid-cap dedicated funds have completed more than three years. On average, they have generated a return of 67.34 per cent. The best performing fund has been PGIM India Midcap Opportunities Fund that generated a return of 92.36 per cent last year while the worst performing fund was DSP Midcap Fund that generated a return of just 51.27 per cent. 

Against the commonly perceived notion that higher-rated funds generate better returns; we saw many lower-rated funds gave better returns than the higher-rated funds. 

Following is a table with lower-rated funds generating better returns than higher-rated funds.

  * equal-weighted rating of all the agencies

Following is a table with higher-rated funds generating returns lower than lower-rated funds.