How mid cap schemes fare in January-March 2023?

The mid cap mutual fund category that invests in mid-sized companies (or companies ranked between 101-250 by market capitalisation) offered an average return of (4.03%) in the January-March quarter in 2023. Mid cap schemes are benchmarked against Nifty Midcap 150 - TRI, S&P BSE 150 MidCap - TRI, S&P BSE SENSEX - TRI, and Nifty Midcap 100 - TRI. Nifty Midcap 150 - TRI, S&P BSE 150 MidCap - TRI, S&P BSE SENSEX - TRI, and Nifty Midcap 100 - TRI lost 4.37%, 4.67%, 2.87%, and 4.55% respectively.

There were 29 schemes in the mid cap category. All the schemes in the category were in the negative territory. Top losers in the category lost around 7%. Quant Mid Cap Fund lost the most around 7.71% in the quarter that ended in March 2023. Taurus Discovery (Midcap) Fund also lost around 7.23% in the quarter that ended in March 2023.

Around nine mid cap schemes lost around 2% and six schemes lost 3%. SBI Magnum Midcap Fund and Mahindra Manulife Mid Cap Fund lost the lowest of around 1.77% and 1.73% respectively in the quarter that ended in March 2023.



ETMutualFunds compared the performance of mid cap schemes for the quarter that ended in March 2023 with the performance of their respective benchmarks. Out of 29 schemes, 18 schemes still managed to beat their benchmarks. Note, we only considered actively - managed schemes for this review.

We considered the regular and growth options. The quarterly returns for the quarter that ended in March 2023 were calculated from January 2, 2023 to March 31, 2023.

As per recent AMFI data, the mid cap category in the quarter that ended in March 2023, received a total inflow of Rs 5,573.65 crore, with the highest inflow in March of Rs 2,128.93 crore. The net asset under management for the mid cap category as on March 31, 2023 was Rs 1.83 lakh crore.

One should consider investing in mid cap schemes only if you have a long-term horizon, say, seven to 10 years as a longer horizon helps in managing the volatility better. The mid cap category helped in managing the downside volatility in the quarter that ended in March 2023 as compared to Nifty50 and underperformed compared to S&P BSE Sensex.

If you are looking for recommendations, see: best mid cap schemes to invest in 2023