This Midcap Fund Outperformed Benchmark, Delivered 36.03% Annualised Returns In 2 Years SIP

If you took a close look at the equity mutual fund (MF) schemes' portfolios, you would find that those schemes had a sizable exposure to midcap equities and had generally stronger long-term performance. When referring to midcap equities in equity mutual fund schemes, we imply businesses with market capitalizations between 101 and 250. The fund managers from this area have so far reaped the benefits of their prudent stock picking.

In this article, we have highlighted Motilal Oswal Midcap Fund, a mid-cap mutual fund. The fund has given good returns to the investors over the years. This fund seeks to achieve long-term capital appreciation by investing in quality mid-cap companies having long-term competitive advantages and growth potential.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is a Midcap Fund by Motilal Oswal Mutual Fund. It was launched on 12 February 2014. It is an 8 years old highly risky midcap equity mutual fund.

Motilal Oswal Midcap Fund - Direct Plan (G) Option, the size of assets under management (AUM) is Rs 2919.32 crore. The fund's expense ratio of the fund is 0.96%, almost parallel to the category average expense ratio of 0.9%. Its Net Asset Value (NAV) as on 12th August 2022 is Rs. 53.7168. Its benchmark is the Nifty Midcap 150 TRI.

This fund is rated 4-star by both Value Research as well as MF rating agency CRISIL. The fund outperformed the benchmark over the years and gave above-average performance among peer funds. The fund has also delivered well with SIP investments. 

Investment

One can begin there investing journey with a minimum required amount of Rs 500 for a lump sum payment and Rs 500 for SIP investments. Whereas, for additional investments, the minimum required amount  is Rs 500.

The fund charges 1% for the redemption within 15 days of the investment. There is no lock-in period applicable to this fund.

Annualised Returns

Lump Sum Investment

It has given an annual average return of 21.96% since its inception.

1-Year	2-year	3-year	5-Year
28.39%	44.90%	28.58%	16.27%

SIP Investment Returns

1-Year	2-year	3-year	5-Year
23.61%	36.03%	34.79%	23.58%

Portfolio

It is an Equity midcap fund with a major holding in equity instruments around 91.47% in equities. It has 4.07% investments in large-cap equities, followed by 21.93% in mid-cap and 34.79% in small-cap stocks, respectively. 

The fund has major equity investments in the Financial sector, followed by Consumer Discretionary, Automobile, Construction, Capital goods, Energy, Services, Chemicals, Materials, Healthcare, and Technology.

The top 10 equity holdings of the fund include Tube Investments of India, Phoenix Mills, CG Power & Industrial Solutions, Gujarat Gas, Campus Activewear, Voltas, AU Small Finance Bank, Cholamandalam Investment & Finance Company, Bajaj Finance and Barbeque-Nation Hospitality. 

Disclaimer

Mutual funds investment are subject to market risks. Read all scheme related documents carefully before investing. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.