This mid-cap fund gave returns of over 24 per cent in a year; do you hold it?
Market returns in the trailing one year were significantly lower than those of savings accounts. This mid-cap fund, on the other hand, returned more than 24 per cent. Continue reading to learn more about this fund.
S&P BSE Sensex returned 3.08 per cent in the trailing one year, which is lower than the return on your bank's savings account. This may be due to the selling pressure exerted by foreign institutional investors (FII), who have been constantly selling since October 2021.
Even the broad market indices lagged behind the frontline indices. S&P BSE Mid-Cap Index and S&P BSE Small-Cap Index both delivered negative returns of 0.5 per cent and 0.18 per cent, respectively.
Nevertheless, Motilal Oswal Mid-Cap 30 (Direct Plan) generated returns of 24.35 per cent during the course of trailing one year. In trailing one year, this fund has outperformed S&P BSE Mid-Cap Index.
|
Trailing Returns (%)
|
YTD
|
1-Year
|
3-Year
|
5-Year
|
7-Year
|
|
Motilal Oswal Midcap 30
|
-1.8
|
24.8
|
24.4
|
13.3
|
13.3
|
|
S&P BSE 150 MidCap TRI
|
-7.7
|
2.0
|
22.2
|
12.7
|
14.3
|
|
Category Average
|
-6.9
|
4.3
|
21.4
|
12.5
|
13.4
|
As can be seen, the Motilal Oswal Mid-Cap 30 fund beat both its category and its benchmark over the entire trailing period. This fund distinguishes out even in terms of risk as well.
|
Risk Statistics
|
Mean
|
Std Dev
|
Sharpe
|
Sortino
|
Beta
|
Alpha
|
|
Motilal Oswal Midcap 30
|
22.11
|
24.68
|
0.75
|
0.68
|
0.92
|
2.50
|
|
S&P BSE 150 MidCap TRI
|
20.94
|
25.28
|
0.69
|
0.72
|
-
|
-
|
|
Category Average
|
19.82
|
23.71
|
0.69
|
0.73
|
0.91
|
0.45
|
According to the data above, this fund appears to be a bit risky when compared to its category. However, when compared to its benchmark, it performs better. This fund, however, shines out when it comes to risk-adjusted returns as determined by the Sharpe ratio.
The sole worry is the Sortino ratio, which takes into account negative standard deviation as opposed to standard deviation in the Sharpe ratio. This signifies that its standard deviation is larger on the negative side. As a result, we may classify this fund as a high risk - high reward.
Furthermore, because it has a concentrated portfolio comprising of only 25 to 30 stocks, investors with a conservative to moderate risk tolerance should avoid investing in it. However, adventurous investors may consider it as part of their satellite portfolio.