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The mid-cap mutual funds have their own charm in the mutual fund industry. This category holds the capacity to deliver exceptionally higher returns when the market is doing well. This is the prime reason due to which the investors are always attracted towards them. But, on the flip side, these are the funds which face the major lows when the market tends to perform badly. The variation between this fall and rise is found to be huge sometimes due to which the investors need to think twice prior to investing in them.
Despite the inherent risk involved in mid-cap mutual funds, schemes like HDFC Midcap Opportunities Fund holds a superior position in the market. If you have ever gone through the performance graph of this scheme, you would have understood why it is so. Let’s find out whether this mid-cap scheme which is helping various investors in generating huge capital and fulfilling their financial goals is suitable for your profile or not.
A Brief About HDFC Mid Cap Opportunities Fund
With an investment objective of generating long-term capital appreciation from a portfolio which substantially constitutes equity and equity-related securities of the small and mid-cap companies, this scheme has been a stagnant performer in its category for a long time. It is ranked among the top-five small & mid-cap schemes in India by CRISIL for various quarters. Being an open-ended scheme, it allows the investors to redeem their capital whenever required without any lock-in period.
HDFC Midcap Opportunities Growth Fund has a moderately high-risk parameter because of the investments which are made in the small or medium-sized companies which get affected the most when the market makes movements. The scheme has been a stable performer with exceptional return record in the past. The absolute annual returns of the scheme in the past five years from 2013 to 2017 have been high-yielding and positive without any falling trail. In the past two years, i.e., 2017 & 2016, it has offered absolute annual returns of 41.2% and 10.6% respectively generating greater hikes in the invested capital.
Apart from this, HDFC Mid Cap Opportunities Fund Growth has also outperformed the benchmark in the case of annualised returns for three and five years. This has made it among the preferred choice in its category, and thus a recommended scheme in our list of the best mutual funds.
Suitability of HDFC Midcap Opportunities Fund (G)
Now comes the point of suitability. You have been wanting to know whether this fund is suitable to your requirements or not. Let’s make it clear right here –
The scheme is suitable for the investors who are willing appreciate their capital over a long-term period and wish to make an investment in equity and equity related instruments of small- and mid-cap companies. By investing in HDFC Midcap Opportunities, you can aim at creating wealth over a long-term period while bearing considerable risk element which is adjusted as the tenure of investment increases.
Accordingly, you must have understood by reading the above description whether you should consider investing in this fund or not. If you are willing to create wealth with HDFC Midcap Fund online, then MySIPonline can assist you in the best way. Get associated with our team and attain the path of successful investing online.