Mid-cap mutual funds invest in mid-cap companies.Which means, these mutual funds invest in companies that are between 100 and 250 on the capitalization charts.

When an investor invests in mid-caps for a long-term, they prefer those companies that they think will be tomorrow’s runaway successes. Traditionally, mid-caps are mid-sized companies, which, if run well with a good business strategy can become tomorrow’s leaders or large-caps.

Check out 10 of the best small and mid-cap funds to invest in 

Institutional investors like mutual funds and Foreign Institutional Investors (FIIs) are increasingly investing in top mid-caps and mid-cap funds to enhance their gains in the equity markets.

So, let’s look into top 7 mid-cap funds available in Indian market.

Top Mid Cap Funds - At a Glance
Fund Name1Y3Y5YCategoryRisk
L&T Midcap Fund - Direct - Growth-7.97%14.57%26.59%Equity
(Mid Cap)
High
Kotak Emerging Equity Scheme - Direct - Growth-8.08%13.25%25.56%Equity
(Mid Cap)
Moderately High
Principal Emerging Bluechip Fund - Direct - Growth-5.85%15.67%25.58%Equity
(Large & Mid Cap)
Moderately High
HDFC Mid-Cap Opportunities Fund - Direct - Growth-7.09%12.79%23.06%Equity
(Mid Cap)
Moderately High
Axis Midcap Fund - Direct - Growth5.06%12.79%22.28%Equity
(Mid Cap)
Moderately High
Invesco India Mid Cap Fund - Direct - Growth-1.43%13.3%23.91%Equity
(Mid Cap)
Moderately High
Sundaram Mid Cap Fund - Direct - Growth-12.91%10.12%22.37%Equity
(Mid Cap)
Moderately High

Top Mid Cap Funds – Details

1.L&T Midcap Fund

This is a mid cap mutual fund launched on August 09, 2004. It is a high-risk fund and has given a return of 21.75% since its launch.

Invest in L&T Midcap Fund Now

Rating by Groww5 star
AUM (Fund Size)₹ 1,323
Minimum SIP₹ 500
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
Age of the fund13 years old
Expense Ratio1.72%

The fund’s asset allocation reveals a 25-30% allocation to small-cap stocks, about 10-11% lower than the small-cap category, while mid-cap allocation is about 55%. The remaining is in large-cap category.

Holding

L&T mid cap fund

L&T mid cap fund

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2.Kotak Emerging Equity Scheme

This is a mid cap equity oriented mutual fund launched on January 01, 2013. It is a fund with moderately high risk and have given a return of 23.83% since its launch.

Invest in Kotak Emerging Equity Scheme Now

Rating by Groww4 star
AUM (Fund Size)₹ 3021
Minimum SIP₹ 1000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark S&P BSE Mid Small Cap Index since its launch.
Age of the fund5 years old
Expense Ratio1.1%

The scheme aims to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies.

Holdings

Kotak mid cap fund holding

3.Principal Emerging Bluechip Fund

This is a Mid Cap Equity Oriented Mutual Fund launched on January 01, 2013. It is a fund with very high risk and have given a return of 25.44 % since its launch.

Invest in Principal Emerging Bluechip Fund Now

Rating by Groww4 star
AUM (Fund Size)₹ 1625
Minimum SIP₹ 2000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark NIFTY Midcap 100 since its launch.
Age of the fund5 years old
Expense Ratio1.48%

The fund searches for companies with sustainable improvement in growth prospects and return ratios over the next 2 to 3 years for investment.

It looks for firms with a good management track record and also trading at attractive valuations. It specifically scouts for stocks under-owned by institutions.

Are high risk-high return funds your cup of tea?

4.HDFC Mid-Cap Opportunities Fund

This is a fund was launched on January 01, 2013. It is a fund with moderately high risk and has given a return of 25.05% since its launch.

Invest in HDFC Mid-Cap Opportunities Fund Now

Rating by Groww4 star
AUM (Fund Size)₹ 120959
Minimum SIP₹ 500
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark NIFTY Midcap 100 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.07%

A remarkably consistent performer in a very whimsical category, this fund has stayed put at a four star rating for the last seven years.

This fund usually invest about 55 to 65 per cent in mid-cap companies, the fund has tended to invest about 30 per cent in large-caps, with a rest investment in small-caps. The fund follows a growth at a reasonable price strategy.

Holdings

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund

Why should you invest in equity mutual funds?

5. Axis Midcap Fund – Direct – Growth

This is currently considered one of the best funds in the mid cap segment:

Key information

Launch Date1 January 2013
NAV (14 Sep 2018)₹39.4
Plan TypeDirect
Rating by Groww5 Star
AUM (Fund Size)₹1,396 Cr
RiskometerModerately High
Minimum SIP₹1,000
Minimum SWP₹500
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark S&P BSE Mid Cap TRI since its launch.
Age of the fund5 years old
Expense Ratio1.38%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

Holding Analysis

1.The top 5 portfolio holdings of the fund include GRUH Finance Ltd., Bajaj Finance Ltd., Page Industries Ltd., City Union Bank Ltd. and Supreme Industries Ltd.

2.The holdings are balanced across various sectors with maximum weightage given to financial services (32%) followed by consumer goods (18%).

Why should you invest in equity mutual funds?

6. Invesco India Mid Cap Fund – Direct – Growth

Another top rated fund in the mid-cap category, this fund has given the highest returns in the last 5 years.

 Invest in Invesco India Mid Cap Fund – Direct – Growth Now

Launch Date1 January 2013
NAV (14 Sep 2018)₹54.5
Plan TypeDirect
Rating by Groww5 Star
AUM (Fund Size)₹179 Cr
RiskometerModerately High
Minimum SIP₹1,000
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark NIFTY Midcap 100 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.03%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

Holding Analysis

1.The top 5 portfolio holdings of the fund include United Breweries Ltd., RBL Bank Ltd., MRF Ltd., Sanofi India Ltd, and Schaeffler India Ltd.

2.The holdings are balanced across various sectors with maximum weightage given to financial services (17.6%) followed by consumer goods (13.9%).

7. Sundaram Mid Cap Fund – Direct – Growth

This is a decent fund and what’s more, you can invest in this fund with a minimum SIP of just ₹250!

invest in Sundaram Mid Cap Fund – Direct – Growth Now

Launch Date1 January 2013
NAV (14 Sep 2018)₹507
Plan TypeDirect
Rating by Groww4 Star
AUM (Fund Size)₹6,039 Cr
RiskometerHigh
Minimum SIP₹250
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark S&P BSE Mid Cap TRI since its launch.
Age of the fund5 years old
Expense Ratio1.40%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

Also, check out the best small-cap funds you can consider investing in 

Holding Analysis

1.The top 5 portfolio holdings of the fund include The Ramco Cements Ltd., Sundaram Clayton Ltd., Quess Corp Ltd., Mahindra CIE Automotive Ltd. and Schaeffler India Ltd.

2.The holdings are balanced across various sectors with maximum weightage given to financial Services (17.4%) followed by industrial manufacturing (16.5%).

Things to Remember

Don’t just run for returns from investment for investing in mutual funds. There are a lot of factors you should look into before selecting a fund which will match your investment goals.

These are the 5 red flags for a mutual fund investor

Following the 3 things you should always remember before investing in Mutual Funds :

  • Higher rates: don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.
  • Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.
  • Review your investment from time to time but not too often. Once a few weeks is good enough.

10 Tips on investing in Mutual Funds

To ensure that the fund is in good hands, choose a fund house having fund manager with a good amount of experience managing small/mid cap funds and associated with these funds for some good numbers of years.

Happy Investing!

Disclaimer:the views expressed here are of the author and do not reflect those of Groww.