Aditya Birla Sun Life Midcap Fund Gives Long Term Capital Growth

February 10, 2020 Tom Clark | Comments Off

It is an open-ended equity scheme investing primarily in mid-cap stocks. The main objective of the Aditya Birla Sun Life Midcap Fund scheme is to achieve long-term principally capital growth at a controlled risk level by investing in ‘mid-cap’ stocks.

This investment is suitable for – 

  • If you want Long term capital growth, then it is useful to you
  • These schemes primarily invest in mid-cap companies

Salient Features of Aditya Birla Sun Life Midcap Fund

  • It is an open-ended equity scheme.
  • It falls into the midcap category
  • The minimum amount for investment is Rs. 1000.
  • Jayesh Gandhi is the fund manager.
  • There is no exit load.

An investor can invest in Aditya Birla Sun Life Midcap Fund through SIP, and a minimum SIP investment amount is Rs. 1000. The minimum investment in lamps is 1000. When redeemed within 12 months, and exit loads of 1 % for investments and Nil after 365 Days.

Investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for the possibility of moderate losses in their investments in market leaders.

Mid-Cup fund:

• 94.69% investment in Indian stocks.

• 11.65% in large-cap stocks

• 58.16% in midcap stocks

• 19.26% in small-cap stocks.

Investors can invest in the fund for seven years or more, you can expect a profit that comfortably defeats the rate of inflation and is higher than other fixed-income options.

The fund is focused on investing only in medium-sized firms. When you compare people investing in large companies, these funds tend to fall more when stock prices fall. In this scenario, you can expect tremendous returns over the long term, but there may be more severe fluctuations along the way. In this scheme, like all equity funds, you can invest through SIP route.

Taxation of Income: Capital gains

  • If an investor sold his mutual fund units after one year from the date of the start of the investment, if you earn up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
  • If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
  • As long as you continue to operate the units, there will be no tax.

Note: If you need to redeem your investment in less than seven years, do not invest in this or any other mid-cap fund.

Conclusion: Mid-cap mutual funds are for aggressive investors with a very high-risk appetite and volatility. These plans are hazardous and can be very volatile from time to time. You will ensure that you have enough risk of investing in these schemes. It would help if you opted for an investment mid-cap scheme with a consistent performance record.