If you want your money to grow over the long term, investing in mid-cap stock shares is a good choice. Even though there are a lot of options, the PGIM India Midcap Opportunities Fund and the SBI Mid Cap Fund Direct Growth stand out. This piece compares these two funds in a wide range of ways, including their goals, strategies, performance, fees, and more.

Fund Objectives

Both the PGIM India Midcap Opportunities Fund and the SBI Mid Cap Fund Direct Growth aim to generate long-term capital appreciation through investments in diversified portfolios of mid-cap equity shares. Though sharing the same broad objective, the two funds differ in their investment strategies.

PGIM India Midcap Opportunities Fund

• Objective: Generate capital appreciation through mid-cap equity shares
• Investment Strategy: Bottom-up approach focusing on strong fundamentals

SBI Mid Cap Fund Direct Growth

• Objective: Generate capital appreciation through mid-cap equity shares
• Investment Strategy: Top-down approach focusing on future growth sectors

Investment Strategies

While both funds invest in mid-cap stocks, their approach varies:

PGIM India Midcap Opportunities Fund

• Approach: Bottom-up
• Focus: Companies with strong fundamentals and management

SBI Mid Cap Fund Direct Growth

• Approach: Top-down
• Focus: Sectors expected to grow in the future

Performance Metrics

A crucial aspect to consider is the performance of these funds:

Expense Ratios and Fees

Investors must be aware of the expenses related to each fund:

PGIM India Midcap Opportunities Fund

• Expense ratio: 0.41%
• Entry load: Nil
• Exit load: Nil

SBI Mid Cap Fund Direct Growth

• Expense ratio: 0.53%
• Entry load: Nil
• Exit load: Nil

Risk Profile

Investors must consider the risk associated with each fund. The PGIM India Midcap Opportunities Fund has a risk rating of 4 out of 5 and a standard deviation of 30.3%. On the other hand, the SBI Mid Cap Fund Direct Growth has a risk rating of 3 out of 5 and a standard deviation of 29.8%.

Minimum Investment Requirements

Both the PGIM India Midcap Opportunities Fund and the SBI Mid Cap Fund Direct Growth have the same minimum investment requirements of Rs.500. This makes them accessible to a wide range of investors.

Liquidity

Liquidity is an essential factor for investors. Both the PGIM India Midcap Opportunities Fund and the SBI Mid Cap Fund Direct Growth offer high liquidity. This ensures that investors can easily buy or sell their shares in the fund without significant impact on the price.

Fund Managers

The management of a fund is vital to its success. The PGIM India Midcap Opportunities Fund is managed by Siddhartha Khemka, who has over 15 years of experience and has outperformed the benchmark index over the past 3 years. On the other hand, the SBI Mid Cap Fund Direct Growth is managed by Vinit Sambre, who has over 20 years of experience and has also outperformed the benchmark index over the past 3 years.

Investing in the PGIM India Midcap Opportunities Fund or SBI Mid Cap Fund Direct Growth depends on individual investment goals, risk tolerance, and time horizon. While both offer appealing prospects for long-term capital growth, their varying strategies, fees, risk profiles, and management must be carefully weighed.

The PGIM India Midcap Opportunities Fund's aggressive style and experienced fund manager may appeal to some, while the SBI Mid Cap Fund Direct Growth's lower expenses and slightly conservative approach might attract others.