“Mid cap category was the worst hit, with 62 per cent schemes underperforming. We had a total of 34 mid cap schemes in our list.”
A lot of Midcap Mutual Funds underperformed the Benchmark – Nifty Midcap 100 in 2017.
One of the reasons was the huge move in Vakrangee Limited and a little bit of a outperformance move in Rajesh Exports. Both these companies have almost zero Mutual Fund Holdings . ( good to see such a boycott.)
But the index calculation does not care for valuations or any other governance concerns. Its a free float survivorship index. For example RCOM was the 7th Largest weight in Nifty in 2007 peak.
|Stock||Value – Dec 2016||Weights – Dec 2016||Value – Dec 2017||Weights – Dec 2017||Value – Feb 2018||Weights – Feb 2018||Returns Dec16 to Dec17|
|Nifty Midcap 100||4402||6697||6199||52.14%|
Of the 52% return in 2017 almost at 3-4% impact came from Vakrangee !!!