The mid and small cap fund category is arguably the most exciting of the lot. It adds a lot of zing to the portfolio and is capable of offering above-average returns when the markets are rising. At the same time, funds in this category are more prone to volatility as mid and small cap companies are hit harder when markets tank.
Mid and small cap funds are those which have at least 60 per cent of assets in mid cap companies over the last 3 years.
These funds can touch soaring heights when the markets are favourable while can also wipe out fortunes when the tide reverses.
Following are the finest funds in the mid and small cap category to choose from:
BNP Paribas Midcap
Franklin India High Growth Companies
HDFC Mid-Cap Opportunities
ICICI Prudential Discovery
IDFC Premier Equity
JP Morgan India Smaller Companies
Mirae Asset Emerging Bluechip
Reliance Equity Opportunities
Religare Invesco Mid N Small Cap
SBI Emerging Businesses