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With the rocky ride mid-caps and small-caps have had in the past five years, this is a good period to test the mettle of mid-cap funds.
And as it turns out, barring a couple, all the funds which have been around for the past five years managed to beat the CNX Mid-Cap index’s 19 per cent five-year return.
Thirty-six funds have a return record for over five years.
The picture is even better in the three-year period, with every single fund outperforming the CNX Mid-cap index.
SBI Magnum Emerging Business has the best five-year return at 33 per cent. Long-term consumer bets such as Page Industries, Bajaj Holdings and Hawkins Cookers could have helped.
In the last one year, though, the fund has churned its sector focus to consumer non-durables, trading companies and finance. This, and picks that are yet to yield, such as P&G Hygiene, dented the one-year return, which was down 3.3 per cent. The CNX Mid-cap index was down 0.1 per cent in the past one year.
From the same fund house, SBI Magnum Midcap has given a superior return of 27 per cent in the last one year while also keeping pace with the benchmark in the longer term.
Trimming exposure to finance while holding good performers such as Motherson Sumi, Page Industries and Ipca Labs helped. The fund’s taking to debt, with a 10 per cent allocation, could have aided as well.
Holding to pharma and software, and industrial products over the long term, boosted HDFC Mid-Cap Opportunities to consistently feature in the top quartile.
Picks such as Ipca Labs, Aurobindo Pharma and mid-sized software players Mindtree, eClerx Services and Persistent Systems have zoomed over the past year.
Other funds topping the performance charts across time-frames include SBI Magnum Global, Franklin India Smaller Companies and Religare Invesco Mid N Small Cap.
Losing outHeavy dependency on sectors such as banks and consumer non-durables arrested Kotak Midcap’s performance.
Frequent sector stirring kept Sundaram S.M.I.L.E at the bottom of the quartile over the past one- and three-year periods.
These apart, Sundaram Equity Multiplier, Reliance Regular Savings, Reliance Growth, Taurus Discovery and Kotak Emerging Equity are those that bungled their one-year returns.
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