2 days ago
Midcap Funds Show Wide Differences in Portfolio Construction
Midcap funds are supposed to invest mainly in medium-sized companies.
However, the funds in this comparison do not all invest in the same way.
Some put a large share of their money in bigger companies.
Motilal Oswal has the highest large-cap allocation at 25.3%.
Other funds, such as Helios, invest much more in smaller companies.
Helios has 30.1% in small-cap stocks.
Quant has the highest stated mid-cap allocation at 74.6%.
This means investors can face different levels of risk even when they choose funds with similar midcap names.
Most of these funds keep nearly all their portfolios invested in equities.
Motilal Oswal Midcap Fund has the highest large-cap allocation at 25.3%, while Helios Mid Cap Fund has the lowest among the cited funds at 4%.
Quant Mid Cap Fund leads mid-cap exposure at 74.6%, followed by Canara Robeco at 73.9% and Axis at 73.7%.
Helios has the highest small-cap allocation at 30.1%, compared with just 3.9% for Motilal Oswal.
Equity exposure is high across the category, with Helios at 99.5% and the category median at 97.5%.
The August snapshot shows that funds carrying the midcap label can have materially different risk and market-cap profiles.
- Who
- The comparison covers 18 midcap mutual funds, including Motilal Oswal, Helios, Quant, Nippon India, ICICI Prudential, Axis and others.
- What
- An August snapshot compares the funds’ large-cap, mid-cap, small-cap, equity, debt and cash allocations.
- Where
- When
- The data is from an August snapshot.
- Why
- The comparison shows that similarly labeled midcap funds can provide substantially different market-cap exposure and risk profiles.
Key facts
- Highest large-cap allocation
- Motilal Oswal Midcap Fund: 25.3%
- Lowest cited large-cap allocation
- Helios Mid Cap Fund: 4%
- Highest mid-cap allocation
- Quant Mid Cap Fund: 74.6%
- Highest small-cap allocation
- Helios Mid Cap Fund: 30.1%
- Category median large-cap allocation
- 15.2%
- Category median mid-cap allocation
- 70.3%
- Category median small-cap allocation
- 15.8%
- Category median equity allocation
- 97.5%
Sources
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