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  • Abhinesh Kumar

Urgent : Switch your MID Cap Funds

"Switch your MID Cap Funds profits to BAF ( Balanced Advantage Fund) " is a current buzz in the financial advisory world ! We collected several data and experts view on this topic and prepared a final suggestion summary for your help .


SWITCH all YOUR MIDCAP FUND units to the respective ASSET ALLOCATION FUND or BALANCED ADVANTAGE FUND

( Action time : immediate)


Logic # 1 : We analysed the run up Story of one of the top performing Mid Cap Fund of India - HDFC Midcap Opportunity Fund ( as on 20th Nov 2023). The return bars are indicating that profit booking has just started. Based on this bar chart, we believe that one should preserve the good returns generated by these funds through Switching of full units to HDFC Balanced Advantage Fund. Please do not stop your SIP in any MIDCAP Funds, as it will give you the advantage of cost averaging on any future fall in such scheme.



Logic # 2 : We analysed the overall last 3 Years returns of the whole MIDCAP Fund category and we found that most of the schemes under MIDCAP category have delivered returns above 20% p.a, which is a good return for any portfolio. We believe that this is really a good return to preserve by switching the units to the respective Hybrid or Asset Allocation Funds

Let us read what experts say about MIDCAP Funds :


1. "From here on, the large-cap funds should do better than mid-cap funds. Investors should not pour money into mid-cap funds, unless they have a large investment horizon of 5-8 years,” says Vikram Dalal, Managing Director, Synergee Capital Services. As quoted to Economic Times

2. “At current valuations, we believe that mid-cap stocks are relatively expensive. If you are looking for undervalued stocks, there are far more opportunities in the large-cap space,” says Sankaran Naren, CIO, ICICI Prudential Mutual Fund.As quoted to Economic Times


3. “Mid-caps used to quote at a large discount, now it isn’t so. There is no reason to rush into the mid-cap funds now,” says K. Joseph Thomas, Director, Wealth Management, India Nivesh Securities.As quoted to Economic Times


Looking at the limited stock options under this MIDCAP category and huge buying rush from all segments, we believe that there is a trap ahead. Hence our final house view at Infinity Finserv (P) Ltd is given below :


SWITCH all YOUR MIDCAP FUND units to the respective ASSET ALLOCATION FUND or BALANCED ADVANTAGE FUND

( Action time : immediate)




Disclaimer : The above analysis and fund restructuring discussion is a general discussion and not specific to any particular investor. Hence you are advised to call our office at : 9307218766 or 0522-4101666 to discuss your individual action according to your investment objective and Risk Profile


Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.





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