Help required in selecting a Small/Mid cap mutual fund

POSTED BY Jai ON January 17, 2014 1:43 pm COMMENTS (5)

I have a SIP in Large cap (ICICI pru bluchip). Now, need to pick a small/mid cap for one more sip. I have short listed 1) Birla Sun Life MNC & 2) SBI Emerging Business Funds based upon last 5 y performance.  Birla Sunlife seem to be giving better returns in last couple of years. Please help me to select a right fund among these for long term investment.

5 replies on this article “Help required in selecting a Small/Mid cap mutual fund”

  1. Kulkarni P says:

    If this is your first mid cap fund, just go for IDFC Premier Equity. Great fund manager and most consistent performer.

    If you need more than one fund then go for IDFC Premier Equity & ICICI Discovery Fund.

    SBI Emerging Business is very risky fund. Last year it was #1 and this year at the bottom.

    PS: I am having investment in all these funds since last 2 years in SIP mode.

  2. Amit AB says:

    Thx Sumit. As far as performance is considered in last 5 years, these 3 are close. What is the point that needs to be considered while selecting one of these?

    IDFC prem SBI Emerging Bus Birla SL MNC
    1 Year 5.2% -7.4% 8.8%
    2 Years 17.4% 16.2% 19.3%
    3 Years 9.4% 12.7% 11.3%
    5 Years 27.6% 30.7% 28.4%

  3. Sumit says:

    Amit,

    Do not believe the rankings blindly, which changes frequently with recent returns, look at consistency, fund manager’s record and portfolio.
    Here are the small/mid cap fund’s that you can consider:

    SBi emerging busniess
    IDFC Premier Equity
    ICICI Pru Discovery Fund
    HDFC Midcap

    Thanks
    Sumit

  4. ashalanshu says:

    Dear Amit, why are you not opting IDFC Prem. Eq?

    Thanks

    Ashal

    1. Amit AB says:

      Ashal – IDFC Prem Equity is ranked 2 by Crisil. Also 3-5 years return performance seem to be better for other 2. Why are you recommending same?

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