Mid cap vs small cap mutual fund: Known as the “Oracle of Omaha,” Warren Buffett is one of the most successful investors of all time. Buffett famously stated his favourite holding period is “forever” for wonderful companies. The 10-year benchmark serves as a mental test to ensure you are buying high-quality businesses with strong fundamentals. He notably stated: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.
If you already invest in mid cap and small cap, or are planning to invest. Understanding how many years one should invest is crucial. In this article, we have covered 15 years of investment period with top mutual funds that performed well. Let’s see who outscored whom in terms of return when comparing mid cap vs small cap mutual funds.
Mutual fund investment plan: Mid cap vs small cap mutual fund
Top performers in 15 years (CAGR)
Mid cap vs small cap mutual fund: Tie between both schemes
The 15-year return chart shows a close tie between the small cap and mid cap fund categories. Among the top 10 performers based on 15-year returns, four schemes are from the mid cap fund category and four are from the small cap fund category. Furthermore, one scheme is from the large and mid cap fund category, and one is from the thematic infrastructure category.
Nippon India’s small cap fund emerged as topper
Nippon India Small Cap Fund has an annualised return of 21.35% over 15 years. This fund has proven to be a 15-year winner.
SBI Small Cap Fund is second on the list with a CAGR of 19.91%. In the small-cap category, DSP Small Cap Fund is ranked fifth with a CAGR of 19.21%, and Franklin India Small Cap Fund is ranked 10th with a CAGR of 18.21%.
All these funds have been high performers over both the 10-year and 5-year timeframes.
In the mid-cap fund category, Edelweiss Mid Cap Fund ranks fourth on the list with an annualized return of 19.26%.
Invesco India Mid Cap Fund is sixth with a CAGR of 18.86%. HDFC Mid Cap Fund is seventh with an annualized return of 18.71%, and Kotak Mid Cap Fund is ninth with a CAGR of 18.66%.
All these funds have been high performers over both 10-year and 5-year timeframes.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
