Strong performance of this fund turns a SIP of Rs 10,000 into Rs 6.5 lakh
In the last three years, PGIM Mid-Cap Opportunities Fund has returned 43.51 per cent. This fund grows Rs 10,000 SIP into a Rs 6.5 lakh corpus. Should you consider this fund? Continue reading to learn more.
Since the June 2022 lows, there has been a strong rally in the Mid-Cap segment. Furthermore, there appears to be a trend reversal. Year to date (YTD), the Nifty Mid-Cap 150 index returned only 0.01 per cent (August 24, 2022).
On a year-to-date basis, the average mid-cap fund category return was 0.5 per cent. PGIM India Mid-Cap Opportunities Fund returned 0.8 per cent during the same period. Although not the highest, it outperformed the benchmark and category.
Yet, this fund has returned 43.51 per cent during the previous three years. During the same period, the category average and Nifty Mid-Cap 150 index yielded 28.1 per cent and 27.12 per cent.
But is this fund's success enduring, and should one think about investing in this fund? In this article, we will examine the fund's risk and return performance. This would assist investors in making a sound decision.
Returns
| Fund Name |
Return Statistics (%) * |
Return Distribution (% of times) * |
| Average |
Maximum |
Minimum |
< 0 |
0 - 10 |
10 - 20 |
20 - 30 |
> 30 |
| PGIM India Midcap Opportunities Fund |
12.3 |
40.7 |
-9.5 |
10.1 |
48.1 |
18.8 |
8.9 |
14.1 |
| Nifty Midcap 100 |
9.4 |
26.0 |
-13.4 |
16.3 |
27.8 |
48.4 |
7.6 |
0.0 |
| Source: RupeeVest | * 3-Year Rolling Returns |
As is observed, PGIM India Mid-Cap Opportunities Fund has outperformed Nifty Mid-Cap 100 index. The average 3-year rolling returns of the fund are 12.3 per cent, while the index is 9.4 per cent. The return is superior to the index even at the lowest level.
Risk
The fund appears to be riskier (standard deviation and beta). Yet it has produced one of the strongest alphas. Its risk-adjusted returns (Sharpe and Sortino ratio) are higher than the category average. As a result, we may classify this as a high-risk and high-return fund.
We have observed that the performance of this fund has recently deteriorated. But, judging the fund's performance over the short term is not a good idea. In the long term, the fund has performed well.