Detail analysis of some of the best funds in Small & Mid Cap category

POSTED BY Rishabh Dubey ON July 9, 2011 7:18 pm COMMENTS (3)

We all know that everone is striving for getting the best returns for there money whether its through stocks or mutual funds or anything else. The best option for the biggest return is through stocks by investing in mid & small cap stocks. But risk is also very high as we all r not management gurus. So for getting similar type of returns with comparatively lower risk we can invest in small & mid cap mutual funds, where our money is been managed by some of the best management gurus & instead of us they will choose the small & mid cap stocks to generate best returns.When selecting the best funds for small & mid cap mutual funds category i found three best ones:-

1-DSPBR Small & Mid Cap fund

2-HDFC Mid Cap Opportunities

3-IDFC Small & Mid Cap Equity

 

I know there past performance & now I would like to know more about them as which has more potential for high returns, which is better managed etc.

You all can give more options too & we should have a detail analysis of each one of them as these r the most important funds in everone’s portfolio.Remember we have to discuss about future & the reasons why one think a fund would outperform its peers in 3-5 years.

 

3 replies on this article “Detail analysis of some of the best funds in Small & Mid Cap category”

  1. Jagadees says:

    @Rishabh Dubey
    Indeed am talking about IDFC premier equity fund. But nevertheless both funds are managed by the same fund manager Mr.Kenneth Andrade. Visit the website to know about him – http://business.in.com/article/work-in-progress/kenneth-andrade-the-midcap-mogul/25852/1

    Regards
    Jagadees

  2. Rishabh Dubey says:

    @jagadees dont confuse between IDFC Premier equity and IDFC Small & Mid Cap Equity.

  3. Jagadees says:

    I dont know much about the HDFC midcap opportunities. Hence i will talk about IDFC premier and DSPBR SME. My choice is IDFC premier equity. Because the fund manager is
    1. Bottom-up value investment based stock picker who looks for financially sound companies.
    2. Maintains a compact portfolio of 25-30 stocks. Once he is convinced about the stock, he will allocated meaningful portion like 3-5% of portfolio funds unlike other fund managers who would have universe of 60-70 stocks with meaningless position like 0.5-1%. (but there is potential downside to this strategy)
    3. Minimum portfolio turnover of 40-50%. when there is minimum churning in portfolio it results in minimum expenses.
    Whereas the fund manager of DSPBR SME,
    1. He is also good value based stock picker but sometimes he will make some momentum calls and hop in & out of some stocks for some short term gains.
    2. Maintains a dispersed portfolio of 60-75 stocks with many meaningless positions. (but the bright side to this strategy is limited risk/downside)
    3. Lots of churning in portfolio. Its turnover ratio is around 125%.
    I am not telling that DSPBR wont generate good returns in future (In fact most of the funds managed by that fund manager is better performing), but simply saying that its not my cup of tea.

    Regards
    Jagadees

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