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POSTED BY ON July 19, 2012 9:53 pm COMMENTS (6)
before sometime the veteran members, Jagdees and Ramesh,while answering query on mf, discussed nicely the importance of selecting equity mutual funds from process oriented AMCs ,and hinted some large cap(including large-mid cap and multicap ) equity funds of their choices between the lines. i request them and other members for suggesting 1-2 good mid small cap equity mf from such process oriented AMC for investment horizon of 10-12 yrs.
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thank you all for your kind advices. they would be useful me to reshape my mid small cap portfolio in meaningful manner.
1) ICICI Prudential Discovery fund
2) IDFC Premier equity A
3) Sundaram select midcap fund
thank you Ramesh. indeed informative and thought provoking for me. as you may be aware, i am holding latter two (both are from not great AMC at least now) plus one more bsl dividend yield plus (again from dubious AMC at least now) , so i like to shift when going is good. of course i am holding only 15-20% of total equity holding, so not in hurry.meantime i have made some hard , but meaningful shift in large cap,where i hold 80-85%. i like your advice’ The key remains, will you be sticking it out during those lean times. Mind you, that is so very difficult to do.’ thank you Ramesh.
Dear Bharat, just a small addition to what dear Ramesh has told you, please consolidate your holdings in a single fund from the midcap space rather than having so many funds in small quantities.
Thanks
Ashal
In my opinion, select the AMC, and then select Whatever mid-small cap offering they have. The mid-small cap funds are not supposed to be consistent performers. They are very risky, which actually means volatile. There will be large durations of time in which they will trail the main indices (namely the sensex/nifty) and at other times, they will just make mince-meat of all other fund groups. The key remains, will you be sticking it out during those lean times. Mind you, that is so very difficult to do.
eg.
1. DSPBR – go with DSP Mid and Small Cap (excluded top 100) or DSP microcap (excludes top 300). The latter is even more volatile/risky. But I would prefer the former.
2. Franklin Templeton – there is Franklin Prima and Franklin Smaller Companies fund (which is now an open fund). Same caveat, long periods of underperformance, and other periods of great ones.
3. IDFC Premier Equity – just because of the manager, and not because of the AMC. So actually not an answer to your question. IDFC Sterling Equity (previously IDFC Mid and Small cap) – same manager, so even that is ok. I will remain in them, till Mr Andrade. is there.
4. ICICI Discovery – is as such not a mid-small cap offering by deffinition. By def, they are value oriented fund, but in their process, they have become mid-small cap. So, they can sometimes take some large caps too, in case they see value in those. The manager is very good (since Mr Naren is back).
Do a proper analysis about the need for such a fund and then jump in!!!
Ramesh
In the Mid-Small cap sector :
1) SBI Magnum Sector Funds Umbrella – Emerg Buss Fund – Growth
2) HDFC midcap opportunities fund – Growth
will be the best picks.