The market today includes a wide variety of mutual fund options designed to cater to the vastly different requirements of potential investors. One such investment option is the Dividend Mutual Fund which pays dividends to investors at predetermined intervals from the profits generated by the fund. Dividend-paying mutual funds help investors build confidence and reliability in the fund. Both equity and debt mutual funds have dividend-paying instruments. The NAV growth of dividend-paying mutual funds is not very significant as its profits are distributed as dividends. 

Dividend funds are suitable for individuals who wish to receive a regular return on their investment. While the dividend yield is not assured, these funds do tend to provide a decent return. Dividend Mutual Funds usually invest in stable stocks that ensure relative safety of funds and tend to perform even when markets are in a decline. 

Equity Mid Cap Dividend Funds

Funds that invest a large part of their corpus in Mid Cap stocks, stocks with market capitalization between Rs 5,000 to Rs 20,000 Cr, are known as Equity Mid Cap funds. If this fund pays out dividends at regular intervals, it is known as Equity Mid Cap Dividend Fund. 

The rationale behind investing in an Equity Mid Cap Dividend Fund

The Mid Cap segment generally consists of promising stocks that have the potential to become Large Cap stocks. Investment in this segment tends to generate an optimal return in bullish markets and often outperforms Large Caps. 

Top five Equity Mid Cap Dividend Funds

1. Kotak Emerging Equity Fund Direct Growth

  • Return: 22.19%
  • AUM: Rs 16485 Cr
  • Expense Ratio: 0.55%
  • Fund Manager: Pankaj Tibrewal
  • Inception: January 2013
  • Objective: The fund objective is to achieve long-term capital appreciation through investments in Mid Cap stock and stock-related instruments. Kotak Emerging Equity Fund direct growth may also invest in debt funds as per pre-defined asset allocation particulars.
  • Holdings: Supreme Industries Ltd, Persistent Systems Ltd, Schaeffler India Ltd, Coromandel International Ltd.
  • Returns: Kotak Emerging Equity fund direct growth has generated a CAGR of 22.19% since inception.
  • Minimum Investment: Lump sum: Rs 5,000, SIP – Rs 1,000

2. Taurus Discovery Mid Cap

  • Return: 18.69%
  • AUM: Rs 78 Cr
  • Expense Ratio: 2.17%
  • Fund Manager: Prasanna Pathak
  • Inception: January 2013
  • Objective: The fund aims to create wealth and capital appreciation through investments in Mid Cap stock and stock-related instruments
  • Holdings: Net Receivable/Payable, Supreme Industries Ltd, Aditya Birla Fashion and Retail Ltd, Tata Chemicals Ltd, and Mahindra & Mahindra Financial Services Ltd are some of this fund’s major holdings.
  • Returns: Taurus Discovery Mid Cap fund has generated a CAGR of 18.63% since inception.
  • Minimum Investment: Lump sum – Rs 5,000, SIP – Rs 1,000

3. Sundaram Mid Cap Scheme

  • Return: 18.54%
  • AUM: Rs 6916 Cr
  • Expense Ratio: 1.15%
  • Fund Manager: S Bharath and Ratish Varier
  • Inception: January 2013
  • Objective: The fund aims at long-term capital growth through a well-diversified investment in equity investments in Mid Cap Segment.
  • Holdings: MindTree Ltd, Grindwell Norton Ltd, Cholamandalam Investment and Finance Co Ltd, Max Financial Services Ltd, Apollo Hospitals Enterprise Ltd.
  • Returns: Sundaram Mid Cap fund has generated a CAGR of 18.54% since inception.
  • Minimum Investment (Lump sum): 100
  • SIP: 100

4. Axis Midcap Fund Direct Plan-Growth

  • Return: 22.23%
  • AUM: Rs 15988Crores
  • Expense Ratio: .48%
  • Fund Manager: Shreyash Devalkar and Hitesh Das
  • Inception: January 2013.
  • Objective: With investment in the stock and stock related instruments in the mid-cap segment, this fund aims at achieving a long term capital appreciation
  • Holdings: Clearing Corporation Of India Ltd, Cholamandalam Investment and Finance Co Ltd, ICICI Bank Ltd, Net Receivables / (Payables), Coforge Ltd.
  • Returns: Axis Midcap Fund Direct Plan-Growth has generated a CAGR of 22.23% since inception.
  • Minimum Investment (Lump sum): Rs 5000
  • SIP: 500

5. SBI Magnum Mid Cap

  • Return: 25.26%
  • AUM: Rs 6426Crores
  • Expense Ratio: 1.09%
  • Fund Manager: Sohini Andani
  • Inception: January 2013.
  • Objective: The fund aims to achieve long-term capital appreciation through investment in a portfolio of mid-cap equity.
  • Holdings: Sheela Foam Ltd, Page Industries Ltd, Carborundum Universal Ltd, Tube Investments of India Ltd Ordinary Shares, JK Cement Ltd.
  • Returns: SBI Magnum Midcap Fund Direct-Growth has generated a CAGR of 25.26% since inception.
  • Minimum Investment (Lump sum): 5000
  • SIP: 1500

Conclusion

These are a few of the well-performing mid-cap funds. These are the particulars of each Mutual Fund as of 14th Nov 2021. Mutual funds carry market risk, and you should consult an expert before undertaking an investment decision. To explore more about these funds and to know how to start investing, please follow the link given below each fund.

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