Mutual Fund Review: PGIM Mid-Cap Opportunities Fund
PGIM Mid-Cap Opportunities Fund returned 43.51% (annualised) in past three years. Does this fund still make sense? Read on to find out more.
The mid-cap segment has seen a good rally from the lows made in June 2022. Moreover, there seems to be a reversal in trend. On a Year till Date (YTD) basis, Nifty Mid-Cap 150 index returned a mere 0.01% (as of August 24, 2022).
The average mid-cap fund category returns on YTD Basis were 0.5%. However, in the same period, PGIM India Mid-Cap Opportunities Fund yielded returns of negative 0.8%. Although not the highest, but fairly outpaced benchmark and category.
Having said that, in the last three years this fund returned 43.51%. In the same period, the category average stood at 28.1% and the Nifty Mid-Cap 150 index yielded 27.12%.
However, is the performance of this fund sustainable and should one consider investing in this fund? In this article, we would be understanding the performance of this fund in terms of risk and returns. This would help investors make an appropriate 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 can be seen in the above table, the performance of the PGIM India Mid-Cap Opportunities Fund seems to be superior to that of the Nifty Mid-Cap 100 index. The average 3-year rolling return of the fund is 12.3%, while that of the index is 9.4%. Even the minimum return is better than that of the index.
Risk
|
Risk Metrics |
Standard Deviation |
Beta |
Sharpe |
Sortino |
Alpha |
|
PGIM India Midcap Opportunities Fund |
18.58 |
0.88 |
0.56 |
0.85 |
6.20 |
|
Category Average |
18.52 |
0.84 |
0.46 |
0.70 |
4.35 |
Although the fund seems to be higher on risk (standard deviation and beta), it has generated one of the best alphas. Moreover, its risk-adjusted returns (Sharpe and Sortino ratio) to is better than the category average. Therefore, we can term this as a high-risk – high-return fund.
Having said that, we can see the performance of this fund deteriorating in recent times. However, the short-term is not a good period to judge the performance of the fund. In the long term, the fund has done quite well. The fund is managed by Aniruddha Naha and has contained well even during the market corrections.
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