How Is L&T Midcap Fund for a Moderate Risk Taker?
Let’s agree to the fact that if you are a medium risk taker, then you have three options available for you- Large cap mutual funds, multicap funds, and hybrid funds. Small cap and mid cap funds are often reserved for the investors who can digest high volatility. But, if you are looking for a long term investment then you can also consider including midcap funds in your portfolio in order to build a diversified portfolio and reach your financial goals early.

You might argue saying that midcap funds are more prone towards risk but as per the historic record if you are maintaining a long term investment perspective (7-10 years) then you can easily ride out short term volatility. L&T Midcap Fund is one such fund that has exceptional risk to reward ratio and a healthy past performance.

An Overview of the Fund:
Dynamics of the Portfolio:

Out of the total AUM, 90.9% is invested in the equity market with a prime focus on midcap companies. The remaining 9.1% is allocated to the money market instruments. If we talk about the distribution of assets among the market caps, then 81.31% is the percentage allocation in the midcap companies. The portion diversified in the large cap and small cap companies are 6.61% and 12.08%, respectively. 

Sector Analysis:

L&T Midcap Fund plays safe bet on a large number of sectors with financial sector (22.62%) being the most favorite choice of the fund managers followed by other sectors like, construction (13.84%), engineering (9.7%), services (9.43%), healthcare (9.25%), chemicals (7.44%), etc. Diversifying the assets in the large number of sectors helps in diluting the risk associated with a particular sector.   

Top Companies in Terms of Asset Allocation:

1. RBL Bank
2. City Union Bank
3. Emami
4. The Ramco Cements
5. Cholamandalam Invest. & Fin. 
6. Torrent Pharmaceuticals
7. EIH
8. Indian Hotels
9. ACC
10. Kajaria Ceramics

Performance During Market Volatility:

As told above, L&T Midcap Fund has provided excellent risk-to-reward returns in the past. Thus, even if you are a medium risk taker then you can play a safe bet on your surplus cash by investing your money in L&T Midcap Fund.
  
Historical Past:
The annualized returns clearly depict that this fund has performed exceptionally well in the past and if the positive sentiments continue to persist in the future then this fund has all the tendency to provide spell-bound returns. Moreover, as per the past record, the L&T Midcap Fund has generated good capitals in the long time in comparison to the shorter period of time. Thus, follow the mindset if you too wish to enjoy health returns in the future.

Is it the Right Time to Invest in L&T Midcap Fund?

There is nothing like ‘right time’ in the finance market as the uncertainty can appear anytime. Therefore, it is always suggested that an investor should have a long investment horizon so that he can safeguard himself from short term market volatility. Moreover, we all know that 2018 was a disappointing year for all the categories of mutual fund but according to the latest situation, midcap funds have started showing steady recovery rate.    

Experts’ Take on L&T Midcap Fund

Financial experts believe that L&T Midcap Fund is suitable mainly for the investors who can digest high risk in the future but as per the past performance and the present portfolio, there is no second thought in saying that the scheme is an all-rounder in the game of mutual fund.  

By now, you must have known that L&T Midcap Fund is one of the best funds in this category. Thus, if you can digest some moderate risk, then you should consider this midcap fund of L&T in your portfolio.
How Is L&T Midcap Fund for a Moderate Risk Taker?
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How Is L&T Midcap Fund for a Moderate Risk Taker?

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