SIP Performance: PGIM India Midcap Opportunities Fund – Direct Plan.

PGIM India Midcap Opportunities Fund is one of the highly-rated equity funds within the category of Mid-cap fund and has outperformed its benchmark since inception and 1, 3, and 5-year period.

Mutual funds offer an individual to invest with small amounts at regular intervals which is suitable for all individuals with different income levels. Through the option of Systematic Investment Plan (SIP), an investor can invest a sum of money of at least Rs 500 periodically, monthly or quarterly. There is no upper limit specified so you can invest as much as you want.

Every individual has a different type of risk capacity, while his risk appetite changes as an individual grow old. Individuals, who are at an early stage of earning, have a high-risk capacity as compared to mid-earning or pre-retirement and retirement stage investors. So, investors with high-risk capacity can invest the amount in equity-related schemes in their early stage and further, can shift some proportion to debt once they get decent returns from the equity markets.

Now let’s look at the SIP performance of PGIM India Midcap Opportunities Fund which is a mid-cap fund investing in the 101st-250th company in terms of full market capitalization. This fund is outperforming its benchmark in 1, 3, and 5-year periods and since inception its outperforming the benchmark i.e., NIFTY Midcap 100 TRI. All rating agencies such as CRISIL, Morningstar and Value Research have given a five-star rating to this fund. If you had invested just Rs 1,000 every month i.e., Rs 12,000 p.a. from October 1, 2018, till the present date i.e., October 8, 2021, then the worth of investment would have been Rs 80,069 as against the amount invested of Rs 37,000.

Now the question arises, what rate of return the above investment delivers? Let’s look at the same:
 

As we can see, in the above calculation if you had invested Rs 1,000 every month for three years, you would have received a 47.56% return. This return is better than a highly rated small-cap fund i.e., Kotak Small-cap fund which delivers 47.15% as of 8th October 2021 in the same time period for the same amount of investment.

Following table depicts the performance of the fund over its benchmark:

Top 5 holdings of PGIM India Midcap Opportunities Fund: