A mid cap MF with an inconsistent track record | Economic Times

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.HOW THE FUND HAS PERFORMED 83866793WHERE THE FUND INVESTS 83866802BASIC FACTSDate of Launch: 10 March 2002Category: EquityType: Mid CapAUM (As on 31 May 2021): Rs 2,707croreBenchmark: NIFTY Midcap 100 Total Return IndexWhat it costsNAV (As on 22 June 2021)Growth option: Rs 394.35IDCW: Rs 38Minimum Investment: Rs 1,000Minimum SIP amount: Rs 1,000Expense ratio(As on 31 May 2021) (%): 2.15Exit load: 1% for redemption within 365 daysTop 5 sectors in portfolio (%) 83866820Top 5 stocks in portfolio (%) 83866827Recent portfolio changesNew Entrants: AIA Engineering, Inox Wind, Inox Wind EnergyComplete Exits: Inox Wind.Increasing allocation: Dr. Reddy’s Laboratories, Phoenix Mills, AU Small Finance Bank.How risky is it? 83866843Source: Value ResearchShould you buy?This fund retains a sizeable presence in large-cap stocks beyond its mid-cap focus. It prefers low debt stocks that have scalable businesses with an ability to generate positive cash flows and high ROI consistently, but do not need large capital for growth. It mitigates risk by limiting exposure to any bet to 5%. However, the fund has been consistently lagging behind its index and peers for the past four to five years. Its longer term track record is also patchy. The new fund manager at the wheel, while a skilled veteran, needs time to prove execution capabilities in the mid-cap space.