DSP MID CAP FUND REGULAR PLAN GROWTH:

Why DSP Mid Cap Fund Regular Plan Growth is a Smart Investment Choice

Investing in mutual funds is a strategic way to achieve long-term wealth creation. Among the various categories, mid-cap funds are notable for their potential to deliver substantial returns over time. One such fund is the DSP Mid Cap Fund Regular Plan Growth. This blog delves into the fund’s key features, performance history, and considerations for potential investors.

What is DSP Mid Cap Fund Regular Plan Growth?

The DSP Mid Cap Fund Regular Plan Growth is an open-ended equity mutual fund that primarily invests in mid-sized companies with significant growth potential. Mid-cap stocks, typically ranked between 101st and 250th by market capitalization, offer a balance between the stability of large-cap stocks and the aggressive growth prospects of small-cap stocks.

This fund is tailored for investors aiming for long-term capital appreciation and who can tolerate short-term market volatility.

Key Features of DSP Mid Cap Fund Regular Plan Growth

• Investment Objective: To generate long-term capital appreciation by predominantly investing in mid-cap stocks.
• Fund Type: Open-ended equity mutual fund.
• Fund House: Managed by DSP Mutual Fund, a reputable entity in the Indian mutual fund industry.
• Benchmark Index: NIFTY Midcap 150 Total Return Index.
• Risk Level: Very High.
• Investment Horizon: Suitable for long-term investors (5 years or more).
• Minimum Investment: ₹100 for SIP, ₹100 for a lump sum.
• Expense Ratio: 1.69% as of January 31, 2025.

Why Invest in DSP Mid Cap Fund Regular Plan Growth?

1. Higher Growth Potential: Mid-cap companies are often in their expansion phase, potentially growing faster than large-cap companies. This fund focuses on fundamentally strong mid-cap stocks that could evolve into future large caps.
2. Diversified Portfolio: The fund maintains a well-diversified portfolio across various sectors, including:
   • Financial Services: 13.65%
   • Capital Goods: 11.4%
   • Automobile: 11%
   • Healthcare: 10.4%
   • Chemicals: 10.18%
   • Technology: 8.52%
   • Materials: 5.63%
   • Energy: 5.14%
   • Services: 3.76%
   • Consumer Staples: 2.9%

   This diversification helps mitigate risks associated with investing in a single sector.

3. Professional Fund Management: Managed by experienced fund managers, Vinit Sambre and Abhishek Ghosh, the portfolio is actively adjusted based on market conditions to optimize returns.
4. Systematic Investment Plan (SIP) Option: Investors can start with a SIP as low as ₹100 per month, making it accessible for those looking to build wealth gradually.

Performance Overview

As of February 21, 2025, the fund’s Net Asset Value (NAV) stands at ₹126.45. Here’s a snapshot of its performance:

• 1-Year Return: 6.27%
• 3-Year Compound Annual Growth Rate (CAGR): 13.92%
• 5-Year CAGR: 15.39%
• Since Inception: 14.89%

Source: Economic Times

While past performance doesn’t guarantee future results, these figures offer insight into the fund’s consistency and resilience.

Factors to Consider Before Investing

• Market Volatility: Mid-cap stocks can be more volatile than large-cap stocks, leading to higher short-term fluctuations.
• Investment Horizon: Ideal for investors with a long-term perspective (5+ years) to navigate market volatility.
• Risk Appetite: Given the moderately high risk, it may not suit conservative investors.
• Expense Ratio: The fund’s expense ratio is 1.69% for the Regular plan as of January 31, 2025. Comparing this with peers ensures cost-efficiency.

Who Should Invest in DSP Mid Cap Fund Regular Plan Growth?

• Long-Term Investors: Those aiming to invest for 5+ years to achieve wealth accumulation.
• Moderate to Aggressive Investors: Individuals comfortable with some degree of volatility in exchange for higher returns.
• SIP Investors: Those preferring to invest small amounts consistently over time.

How to Invest in DSP Mid Cap Fund Regular Plan Growth?

Investing in this mutual fund is straightforward and can be done through multiple platforms:

• Through DSP Mutual Fund’s Website: Direct online investment.
• Via Mutual Fund Apps: Platforms like Groww, Zerodha Coin, Paytm Money, etc.
• Through Financial Advisors: For personalized guidance.
• Banks and Brokers: Many banks offer investment services for DSP mutual funds.

The DSP Mid Cap Fund Regular Plan Growth presents a compelling opportunity for investors seeking to capitalize on the growth potential of mid-cap stocks. With a robust track record, professional fund management, and a diversified portfolio, this fund is well-positioned for long-term wealth creation.

However, it’s crucial to assess your risk tolerance and investment horizon before investing. As with all investments, staying informed and regularly reviewing your portfolio can help maximize returns.

Are you ready to explore the potential of mid-cap mutual funds? Consider starting your investment journey with the DSP Mid Cap Fund Regular Plan Growth today!

Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

Note: The performance data and other details are sourced from Economic Times and are accurate as of February 21, 2025.

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