Best MidCap Fund: Up to 45% returns, got 4-star rating
Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund is a midcap fund of Motilal Oswal Mutual Fund. It was launched on 12 February 2014. It is an 8-year-old midcap equity mutual fund. The Asset Under Management (AUM) of Motilal Oswal Midcap Fund – Direct Plan (G) Option is Rs 2919.32 Crore. The fund has an expense ratio of 0.96 percent, which is almost equal to the category average expense ratio of 0.9 percent.
4 star rating
The fund has been given a 4-star rating by both Value Research and MF rating agency CRISIL. The fund has outperformed its benchmark the years and outperformed its peers over the years. This fund has done even better with SIP investments.
Minimum investment required
The amount required for minimum lumpsum investment is Rs 500 and for SIP investment is Rs 500. With this amount, one can start their investment journey. Whereas, for additional investment, the minimum amount required is Rs 500. The fund charges a 1% fee when redeemed within 15 days of investment. There is no lock-in period applicable in this fund.
It has given an annual average return of 21.96% since its inception. Whereas its Lumpsum Annual Returns for 1-Year, 2-Year, 3-Year, and 5-Year have been 28.39% 44.90% 28.58%, and 16.27% respectively. The SIP annualized returns for the same periods have been 23.61%, 36.03%, 34.79%, and 23.58%.
How is the fund’s portfolio
It is an equity midcap fund with an equity holding of about 91.47 percent. It has 4.07% exposure in large-cap equities. This is followed by 21.93% in mid-caps and 34.79% in small-cap stocks. The fund’s major investments are in the financial sector. It is followed by consumer discretionary, automobile, construction, capital goods, energy, services, chemicals, materials, healthcare, and tech. The fund’s top 10 equity holdings include Tube Investments of India, Phoenix Mills, CG Power & Industrial Solutions, Gujarat Gas, Campus Activewear, Voltas, AU Small Finance Bank, Cholamandalam Investment and Finance Company, Bajaj Finance, and Barbecue-Nation Hospitality.
A mutual fund can make crorepati
Mutual funds have a formula called 15X15X15. Here ’15’ is three times. These include growth rate, tenure, and the monthly amount of savings. Assuming that you will get a 15% annualized return in 15 years (180 months), you will need to invest Rs 15000 every month to arrive at a corpus of Rs 1 crore. That is, 15 years, Rs 15000 per month, and an annual return of 15% will make you a millionaire.