What is the return of JM Mid Cap Fund?
The JM Midcap Fund Direct Growth has been there from 21 Nov 2022 and the average annual returns provided by this fund is 58.28% since its inception.
The mid cap category has offered an average return of around 20.31% in the 10-year horizon. The mid cap schemes are benchmarked against Nifty Midcap 100 - TRI, Nifty Midcap 150 - TRI, and S&P BSE 150 MidCap - TRI.
Now, with the S&P 500 substantially outreturning the S&P 400 over the past five years—15.69% annualized for the S&P 500 versus 12.62% for the S&P 400 and 9.97% for the Russell 2000, according to Morningstar—some professionals say midcaps could be poised to outperform large-caps and now is a good time to build a ...
Exit Load: JM Midcap Fund - Direct Plan shall attract an Exit Load, "Exit load of 1% if redeemed within 180 days."
Mid Cap Mutual Funds carry a higher risk than Large Cap Funds. Hence, you must opt for these schemes if you have a higher risk tolerance. Also, you need an investment horizon of around 8-10 years. Remember, the Mid Cap segment holds a lot of opportunities for investment and wealth creation.
Mid cap funds provide an able alternative for investors to derive benefit from mid-cap stocks over the long term. Investors should however note that since these tend to be riskier than the large caps, they should limit their exposure to this category.
Mid Caps Dominate in Long-Term Performance
However, the longer mid-cap stocks are held, the more often they outperformed. In fact, 60% of the time, mid-caps outperformed small- and large-cap stocks over any 10-year rolling period in the past 20 years.
The highest delivering small cap mutual fund in 2023 was Mahindra Manulife Small Cap Fund, which offered over 53 per cent annual return last year, according to data available on Association of Mutual Funds in India (AMFI).
Going ahead, experts believe that the rally in midcaps and smallcaps in 2024 is not likely to be as strong as the one in 2023 due to high valuations. Furthermore, the analysts have started to prefer largecaps over midcaps and smallcaps in 2024 after last year's surge.
To find an appropriate investment mix for your time horizon, find your age and the corresponding portfolio allocation. A typical mixture could include 60% large-cap (established companies), 20% mid-cap/small-cap (small to medium-sized compa- nies), and 20% international (companies outside the U.S.) stocks.
How do you avoid exit load in mutual funds?
How can I avoid paying exit loads on mutual funds? To avoid paying exit loads on mutual funds, investors should adhere to the minimum holding period specified by the mutual fund scheme. If you plan to redeem your investment before the completion of the specified period, you will likely be subject to the exit load.
About JM Midcap Fund
JM Midcap Fund Direct - Growth has ₹781 Crores worth of assets under management (AUM) as on 31/12/2023 and is small fund of its category. The fund has an expense ratio of 0.34%, which is less than what most other Mid Cap funds charge.
1. Current NAV: The Current Net Asset Value of the JM Midcap Fund - Regular Plan as of Feb 13, 2024 is Rs 14.91 for Growth option of its Regular plan. 2. Returns: Its trailing returns over different time periods are: 55.0% (1yr) and 42.54% (since launch).
Mid-cap stocks have high growth potential but an investor needs to have a strong risk tolerance to invest in them. Small-cap stocks have higher growth potential compared to mid-cap stocks but the risks they carry is greater than mid-cap stocks.
Market Volatility: The active management of mid-cap funds make them more volatile. However, these funds do have a higher return potential in a bull market. On the other hand, the passive management of index funds make them less volatile but also this comes with lesser return potential.
Many financial planners recommend parking the bulk of your investments in a diversified, large-company U.S. stock mutual fund or exchange-traded fund. But if you're hoping to participate in decades worth of stock-market gains, it may be worth investing in funds that own small- and mid-cap stocks, too.
The top performing mid-cap mutual funds include Nippon India Growth Fund, Mahindra Manulife Mid Cap Fund, JM Midcap Fund and HDFC Mid-Cap Opportunities Fund (see table above).
Motilal Oswal Large & Midcap Fund, the topper in the large & mid cap category, offered 34.39% in 2023. HDFC Large and Mid Cap Fund gave 32.87%. Bandhan Core Equity Fund gave 31.20%. UTI Large & Mid Cap Fund and Nippon India Vision Fund offered around 29%.
Who Should Invest in Large and Mid Cap Stocks? Investors seeking Long Term Capital Growth: These are ideal for investors looking to generate wealth in the long haul. Investors Looking to Invest in Mid Cap but don't want to take a lot of risk : Pure mid cap funds are slightly more volatile than large and mid cap funds.
Mumbai: Mid- and small-cap stocks tumbled on Monday as heightened concerns that the recent run-up in several of them - especially public sector companies - has been excessive, and prompted investors to aggressively cut their bets. If the decline in share prices continues, it could result in.
How do mid caps perform in a recession?
Mid-caps had the best returns during 71% of late recession periods, and never had the worst performance. Over the full course of US recessions since 1970, US equity returns were sometimes positive and sometimes negative (Chart 7).
While mid-cap stocks have their advantages, they also come with some disadvantages: Higher risk: They are more volatile and carry higher risk than large-cap stocks, making them less suitable for risk-averse investors.
| Mutual funds | 1-year return (%) |
|---|---|
| Axis Value Fund | 40.16 |
| SBI Long Term Equity Fund | 40.00 |
| HDFC Multi Cap Fund | 40.19 |
| Kotak Multicap Fund | 39.77 |
What were the top-performing funds? Top of the list by some margin was the JP Morgan Emerging Europe, Middle East & Africa investment trust, with a one-year return of almost 50%. The Amundi Semiconductor ETF comfortably took second place with a one-year return of 43%, well ahead of the iShares Poland ETF at 35%.
| Fund | AUM (In Crs) | 5 Yr Return (%) |
|---|---|---|
| HDFC Balanced Advantage Fund Direct Plan Growth Option | ₹73349 Cr | 20.95 % |
| Edelweiss Aggressive Hybrid Direct Plan Growth Option | ₹1170 Cr | 19.17 % |
| UTI Aggressive Hybrid Fund-Growth - Direct | ₹5215 Cr | 17.16 % |
