The Motilal Oswal Midcap Fund has had a fantastic year in 2024, giving returns of about 57.51%. This strong performance has caught the attention of many investors. The big question now is whether the fund can keep doing well in 2025.
The fund started on February 24, 2014, and has received five-star ratings from places like ValueResearch and Morningstar. Over the past 10 years, it has grown by 17.99% each year on average, which is better than its benchmark of 17.45% and the average of similar funds at 15.32%. In the last five years, it earned 28.08%, outpacing its benchmark of 25.38% and the category average of 23.02%.
When looking at daily returns, this fund performed the best among midcap funds over the last 10 years, showing a remarkable 21.34% growth rate. In 2015 and 2024, it delivered the highest returns compared to other midcap funds. However, it has struggled in other years, like in 2018 when it lost 12.70% while other funds gained.
An expert explained that the fund’s success in 2024 is mainly due to its smart stock choices and finding growth opportunities, especially in sectors that performed well.
If someone had invested ₹10,000 every month in this fund over the last three years, it would now be worth ₹5.65 lakh. For five years, it would have totaled ₹13.56 lakh.
The fund currently has 90.80% of its investments in stocks and remains focused on high-quality midcap companies. It has about 84 stocks in its portfolio, with a significant chunk invested in the IT sector.
However, experts suggest investors be careful now, as market prices might be high after such strong growth. It might be wise for new investors to wait for a better time to enter the market. It’s essential to be patient and think long-term while investing in midcap stocks.
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