These midcap funds are giving tremendous growth, more than 25% returns in 5 years, see list:

Best Mid Cap Mutual Funds India:When we think of investing our hard-earned money, the first question we ask is – “How much return will we get?” Although market experts always say that “past performance is no guarantee of future,” yet looking at the graph of the last few years gives an idea of ​​the strength of the fund.

If you want to earn great profits by taking little risk, then Mid-Cap Funds are proving to be a great option for you. These funds strike a balance between growth and risk that is appealing to investors.

What is a mid-cap fund?

To understand in simple language, mid-cap funds are those schemes which invest your money in those companies which are neither very big (large cap) nor very small (small cap) in size. According to SEBI rules, these funds should invest at least 65% money Have to invest in mid-cap companies.

The latest data from the Association of Mutual Funds in India (AMFI) shows that there are currently 31 mid-cap funds in the market, which is approximately Rs 4.54 lakh crore Are managing. That is, people’s trust in them is continuously increasing.

Those 7 funds which did wonders in the last 5 years

If we look at the track record of the last 5 years, many mid-cap funds have 25% to 30% Has given annual return of Rs. Here is the condition of those top performers:

1. Motilal Oswal Mid Cap Fund: 30.31% (highest return)
2. HDFC Mid Cap Fund: 27.57%
3. Nippon India Growth Mid Cap Fund: 27.02%
4. Edelweiss Mid Cap Fund: 26.94%
5. Invesco India Mid Cap Fund: 26.44%
6. Mahindra Manulife Mid Cap Fund: 25.99%
7. Quant Mid Cap Fund: 25.31%

Real magic: How did Rs 1 lakh become Rs 3.70 lakh?

Figures are often not understood, let us understand it with an example.
Suppose, if you had invested Rs 1 lakh in Motilal Oswal Mid Cap Fund exactly 5 years ago, then at the rate of 30% return (CAGR), that money would have grown to around Rs 3.71 lakh today.
Even if the return had been 25%, your Rs 1 lakh would have increased to more than Rs 3 lakh 5 thousand.
it is called ‘The power of compounding’That means money itself creates money,

Attention Don’t invest blindly

These figures are certainly very tempting, but wise investors do not invest money just looking at the returns. There are a few things you should keep in mind:

• Fund House: What is the past record of the company in which you are investing money?
• Fund Manager: How experienced is the person managing money?
• Risk: Do you have the ability to withstand market fluctuations?
• Duration: It is beneficial to invest in mid-caps with a perspective of at least 5 to 7 years.

Therefore, do not just run after returns, proceed only after understanding your needs and risk appetite.