Feb 22, 2017 4 min read

Best 5 Mid and Small-Cap Funds to Invest in 2017

Learn about top five small-and-mid cap funds which can earn you high returns in 2017.

Investment experts have predicted that the year 2017 holds a special place for the Mid- and Small-cap funds and they are likely to earn you noteworthy returns in the future. These funds have shown an impressive performance for the period of three to five years and an investment in them would prove beneficial. If you are confused as to which small and mid cap funds would be best suited for your portfolio, then this blog will clear all your doubts.

As suggested by our financial analysts, below are the top five Mid- and Small-Cap Funds which can earn you high returns for the investments you make in 2017. Take a read through their portfolio below:

1. Franklin India Smaller Companies Fund

Launched in December 2005, Franklin India Smaller Companies Fund holds the second ranking given by CRISIL under the Mid- and Small-Cap Funds for the quarter ended in December 2016. It is an open-ended diversified scheme which aims to provide long-term capital appreciation while making investments in the mid- and small-cap companies. The scheme generated 28.8% annualised returns in the five year tenure and hence, it is advised to stay invested in it while keeping a track on its performance. It has NIFTY MIDCAP 100 as its benchmark and has an asset size of Rs.3,324,75 crore as on December 31, 2016. Moreover, investors can start investing in it with a minimum lump sum amount of Rs.5000.

The asset allocation of this scheme are spread in the sectors such as Telecom, Banking/Finance, Metals and Mining, Technology, Oil and Gas, etc., with major equity investments in the companies including Finolex Cables, Equitas Holding, Repco Home, Yes Bank, Guj Minerals.

2. Kotak Emerging Equity Scheme Regular Plan

Kotak Emerging Equity Scheme Regular Plan is an open-ended scheme which was launched in March 2007. The main aim of this plan is to provide long-term appreciation in the equity and equity-related securities by significantly investing in the small- and mid-cap companies.

It has earned the second rank in the CRISIL rating for the quarter ended in December 2016. The scheme has its benchmark as S&P BSE SMALLCAP against which its performance is measured, and has an asset size of Rs.1,126.24 crore as per December 31, 2016. Moreover, the annualised returns of this scheme are 23.8% for the five-year period. The minimum lump sum investment one can make in this scheme is of Rs.5000, and it is advised to stay invested in this scheme and watch out for its performance.

Among the major holding of this scheme equity investments in corporates such as IndusInd Bank, FAG Bearings, V-Guard Ind, Ramco Cements, Finolex Cables hold a significant position.

3. Reliance Small Cap Fund

Reliance Small Cap Fund was launched in 2010 with an aim to generate long term capital appreciation by investing predominantly in equity and equity-related instruments of small cap companies along with offering consistent returns by investing in debt and money market securities. It holds a benchmark in the S&P BSE SMALLCAP and has an asset size of Rs. 2,314.84 crores as on December 31, 2016. Moreover, you can invest in this scheme with the lowest amount Rs.5000. Furthermore, the annualised returns of this scheme have been 28.2% for a period of five years.

The asset allocation of this scheme are in the industrial sectors such as Pharmaceuticals, Engineering, Chemicals, Banking/Finance, Cement and Manufacturing. Its top holdings include Navin Fluorine, Honda Siel, Seya Industries, West Coast Pap, Biocon, Bharat Elec among others.


4. DSP BlackRock Small and Mid Cap Fund - Regular Plan

It is an open-ended equity growth scheme who’s prime objective is to generate long-term capital appreciation from a portfolio which substantially constitutes equity and equity-related securities which are not a part of the top 100 stocks under market capitalization. It is ranked second in the CRISIL rating for the quarter which ended in December 2016. This scheme has made its benchmark in NIFTY MIDCAP 100 and has an asset size of Rs.2,313.76 crore. The initial amount with which you can make a lump sum investment in this scheme is Rs.5000.

The major allocation of the assets of this scheme is made in the sectors including Engineering, Manufacturing, Chemicals, Banking/Finance. Moreover, the equity investments are made majorly in the Techno Electric, SRF, Atul Federal Bank, Manappuram Finance.

5. Sundaram Select Mid Cap Fund

Sundaram Select Mid Cap Fund was launched in 2002 and the scheme’s primary objective is to achieve capital appreciation by investing in diversified stocks of the companies which are referred to as 'mid-caps'. The scheme holds S&P BSE MIDCAP as its benchmark and has an asset size of Rs.3,912.95 crore. You can make an initial lump sum investment of Rs.5000 in this scheme.

Its top holding are in equity stocks of companies namely, FAG Bearings, SRF, Sundaram-Clayto, Arvind, Bajaj Finserv, IGL, Ramco Cements.

The mid- and small-cap companies are considered to be the most promising ones with high-growth potential. The year 2017 has brought great opportunities for the investors seeking investments in the small- and mid-cap stocks for higher growth. These schemes are outperforming in their category and are expected to yield great profits in the future. Thus, investing in this plan would be beneficial for the investors to accomplish their financial goals.

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