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| Capitalstars Investment Advisor |
We are keeping a close watch on HDFC Mid-Cap Opportunities Fund. As per our methodology, the scheme has been in the last quartile for over six months now. We will continue to watch the performance of the scheme and update you on its performance.
Here is an update on our mid-cap mutual fund recommendation list for 2020. And there are no changes to the list this month. In short, if you have invested in these mid-cap schemes, you may continue with your investments in them and make fresh allocations to them.
However, we are keeping a close watch on HDFC Mid-Cap Opportunities Fund. As per our methodology, the scheme has been in the last quartile for over six months now. We will continue to watch the performance of the scheme and update you on its performance.
Currently, the mid-cap mutual fund category is offering 17.58% returns in the last one year. The category has given 7.64% returns in three years and 8.46% returns in five years.
If you are new to these recommendations, here are a few things you should understand before considering to invest in mid-cap mutual funds to meet your long-term financial goals. Mid-cap mutual funds invest mostly in mid-cap stocks or stocks of mid-sized companies. These companies could become a successful large company. If that happens, you will make money.
However, many mid-sized companies never fulfill their promise. In fact, many of them get into trouble because of dubious management practices and lack of vision. This is the risk you are taking while investing in mid-cap stocks. When the company hits a rough patch, the stock tanks and it may take a very long time to bounce back or it may never regain its glory. When a company faces these phases, its stocks may tank heavily.
This is the reason why mid-cap stocks are considered extremely risky and volatile. That is the reason why these schemes are recommended only to an investor with a very large appetite and ability to cope with volatility. Advisors also say investors should invest in mid-cap schemes only if they have a very long horizon.
If you are a new mutual fund investor, you should avoid investing in mid-cap schemes. Start with relatively safer large-cap mutual funds, gain some experience before venturing into the mid-cap space. Do it only if you have the necessary risk appetite. Otherwise, sacrifice those extra returns and be happy with moderate returns from relatively less risky equity schemes like large-cap mutual funds and multi-cap mutual funds.
Finally, if you have a very high-risk appetite and can invest for a long-term horizon of seven to 10 years, you can invest in mid-cap mutual fund schemes. We have handpicked five mid-cap equity mutual fund schemes that you may consider to invest to achieve your long-term financial goals.
Best mid-cap mutual fund schemes to invest in 2020
L&T Midcap Fund
HDFC Mid-Cap Opportunities Fund
DSP Midcap Fund
Invesco India Midcap fund
Axis Midcap Fund
We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
Capitalstars is a SEBI registered investment advisor. Schedule a call with Capitalstars investment consultant or drop a mail at backoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927
Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com
