A type of equity mutual funds, mid-cap funds predominantly invest in equity shares of companies with a market capitalisation between Rs.5,000 crore and Rs.20,000 crore. These mid-cap companies are ranked from 101 to 250, depending on their market capitalisation. The Securities and Exchange Board of India (SEBI) evaluates and rank these companies. The best mid-cap mutual funds have the potential to produce greater returns than large-cap funds.
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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
| Quant Mid Cap Fund | Equity | Very High | 13.5% | 5 | ₹1,330 |
| PGIM India Midcap Opportunities Fund | Equity | Very High | 0.4% | 5 | ₹7,558 |
| Axis Midcap Fund | Equity | Very High | -1.8% | 5 | ₹19,144 |
| Baroda Midcap Direct Fund | Equity | Very High | 27.5% | 4 | ₹92 |
| SBI Magnum Mid Cap Fund | Equity | Very High | 3.7% | 4 | ₹8,426 |
| Mirae Asset Midcap Fund | Equity | Moderately High | 3.0% | 4 | ₹9,002 |
| Edelweiss Mid Cap Fund | Equity | Very High | 4.3% | 4 | ₹2,481 |
| Motilal Oswal Midcap Fund | Equity | Very High | 11.6% | 4 | ₹3,627 |
| Nippon India Growth Fund | Equity | Very High | 5.6% | 4 | ₹13,597 |
| Kotak Emerging Equity Fund | Equity | Very High | 6.3% | 4 | ₹23,335 |
| Invesco India Mid Cap Fund | Equity | Very High | 1.6% | 4 | ₹2,678 |
| HDFC Mid-Cap Opportunities Fund | Equity | Very High | 11.3% | 3 | ₹35,731 |
| UTI Mid Cap Fund | Equity | Very High | 0.7% | 3 | ₹7,230 |
| Mahindra Manulife Mid Cap Unnati Yojana Fund | Equity | Very High | 0.6% | 3 | ₹1,063 |
| Baroda BNP Paribas Midcap Fund | Equity | Very High | 3.4% | 3 | ₹1,228 |
| View All |
Let’s take a look at the striking characteristics of the top mid-cap mutual funds:
Asset allocation: The SEBI mandates mid-cap funds to invest at least 65% of total assets in equity and equity-related securities of mid-cap companies. The rest can be allocated to debt securities.
Risk-return ratio: The best mid-cap mutual funds involve a moderate risk-return ratio. They are less risky than small-cap ones. At the same time, mid-cap schemes can generate greater returns and outperform large-cap equity funds in the long run.
Short-term Capital Gains Tax: STCG tax is applicable at 15% on capital gains if investors sell the mutual fund units within 12 months of purchase. This is regardless of the total amount of capital returns.
Long-term Capital Gains Tax: If the holding period of the sold units is more than 1 year, LTCG tax will be applicable at 10% on the gains exceeding Rs.1 lakh. Note that any amount up to Rs.1 lakh in a financial year is exempted from this tax.
TDS: Any dividend from mid-cap funds exceeding Rs.5000 in an FY is applicable for 10% TDS.
Mid-cap funds are associated with greater risk than large-cap equity-based funds. An economic slowdown can adversely affect their stocks, and they might take longer to recover than stocks of big companies. At the same time, these funds also come with the probability to produce market-beating returns. Investors willing to sit through long-term investments and ready to face such volatility can reap significant benefits from these funds. However, they must consider all aspects carefully before investing in the best mid-cap mutual fund.
Here is a list of factors to consider when investing in a mid-cap fund.
Investment goal: Not all investors will have the same financial goal. Therefore, it is crucial to understand one’s investment objective before allocating savings to the best mid-cap mutual funds.
Risk tolerance: Before investing in mid-cap mutual funds, investors must evaluate the level of risk they can bear. It’s an essential consideration in this regard since market volatilities significantly impact their returns. Investors may want to evaluate their plans to assess the scale of losses they can weather without any significant dent in their financial standing.
Expense ratio: It is the portfolio management fee that investors need to pay to an asset management company (AMC). This cost can vary across investment schemes. Funds with a combination of a low expense ratio and a decent track record can help investors maximise their returns.
Exit load: It’s a form of penalty AMCs levy if an investor redeems their fund units prior to a specific period. Exit load is denoted in % of the proceeds from the redemption of such units. The exit load % and period within which it’s applicable is usually mentioned in the scheme-related documents. Some schemes might not feature any exit load. Hence, it’s imperative to check this before investing.
Past performance of the fund: Individuals can gauge a fund’s future returns from its historical performance. It can help investors understand the fund’s volatility, consistency, strengths and weaknesses, and investment style and help them compare it with other funds.
Experience of the fund manager: The decisions taken by a fund manager directly affects a scheme’s returns. It is important for investors to examine a manager’s skill set that aids in their research and analysis of best mid-cap mutual funds. This will play an important role in making or breaking an investment plan in the long run.
Direct or regular plan: Mutual fund companies offer these plans directly. These do not entail the involvement of a third-party agent. As a result, direct plans do not involve additional commission, leading to a lower expense ratio. On the other hand, individuals can purchase regular plans from intermediaries like brokers, distributors, etc.
Following is a list of notable advantages of the best mid-cap mutual funds:
Investment mode: Individuals can invest in mid-cap mutual funds either via lump sum or Systematic Investment Plan (SIP). The former allows investors to allocate all savings in one go. The minimum investment has to be Rs.1,000. On the other hand, SIP allows individuals to invest at fixed intervals (monthly, quarterly, etc.). Here, the instalment amount starts from Rs.500 in most cases.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Quant Mid Cap Fund has given 32.55% annualized returns in the past three years and 19.43% in the last 5 years. The Quant Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,330Cr |
| 1Y Returns | 13.5% |
Fund Performance: The PGIM India Midcap Opportunities Fund has given 31.5% annualized returns in the past three years and 17.27% in the last 5 years. The PGIM India Midcap Opportunities Fund belongs to the Equity category of PGIM India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in PGIM India Midcap Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,558Cr |
| 1Y Returns | 0.4% |
Fund Performance: The Axis Midcap Fund has given 17.25% annualized returns in the past three years and 14.89% in the last 5 years. The Axis Midcap Fund belongs to the Equity category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Midcap Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹19,144Cr |
| 1Y Returns | -1.8% |
Fund Performance: The Baroda Midcap Direct Fund has given 23.56% annualized returns in the past three years and 16.94% in the last 5 years. The Baroda Midcap Direct Fund belongs to the Equity category of Baroda Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Baroda Midcap Direct Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹92Cr |
| 1Y Returns | 27.5% |
Fund Performance: The SBI Magnum Mid Cap Fund has given 23.3% annualized returns in the past three years and 11.51% in the last 5 years. The SBI Magnum Mid Cap Fund belongs to the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,426Cr |
| 1Y Returns | 3.7% |
Fund Performance: The Mirae Asset Midcap Fund belongs to the Equity category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Midcap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹9,002Cr |
| 1Y Returns | 3.0% |
Fund Performance: The Edelweiss Mid Cap Fund has given 22.35% annualized returns in the past three years and 11.73% in the last 5 years. The Edelweiss Mid Cap Fund belongs to the Equity category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,481Cr |
| 1Y Returns | 4.3% |
Fund Performance: The Motilal Oswal Midcap Fund has given 21.98% annualized returns in the past three years and 14.53% in the last 5 years. The Motilal Oswal Midcap Fund belongs to the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Midcap Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹3,627Cr |
| 1Y Returns | 11.6% |
Fund Performance: The Nippon India Growth Fund has given 20.71% annualized returns in the past three years and 12.62% in the last 5 years. The Nippon India Growth Fund belongs to the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Growth Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹13,597Cr |
| 1Y Returns | 5.6% |
Fund Performance: The Kotak Emerging Equity Fund has given 20.54% annualized returns in the past three years and 13.42% in the last 5 years. The Kotak Emerging Equity Fund belongs to the Equity category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Emerging Equity Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹23,335Cr |
| 1Y Returns | 6.3% |
Fund Performance: The Invesco India Mid Cap Fund has given 19.11% annualized returns in the past three years and 12.71% in the last 5 years. The Invesco India Mid Cap Fund belongs to the Equity category of Invesco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Invesco India Mid Cap Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹2,678Cr |
| 1Y Returns | 1.6% |
Fund Performance: The HDFC Mid-Cap Opportunities Fund has given 21.9% annualized returns in the past three years and 11.53% in the last 5 years. The HDFC Mid-Cap Opportunities Fund belongs to the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Mid-Cap Opportunities Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹35,731Cr |
| 1Y Returns | 11.3% |
Fund Performance: The UTI Mid Cap Fund has given 20.6% annualized returns in the past three years and 10.4% in the last 5 years. The UTI Mid Cap Fund belongs to the Equity category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,230Cr |
| 1Y Returns | 0.7% |
Fund Performance: The Mahindra Manulife Mid Cap Unnati Yojana Fund belongs to the Equity category of Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Mid Cap Unnati Yojana Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,063Cr |
| 1Y Returns | 0.6% |
Fund Performance: The Baroda BNP Paribas Midcap Fund has given 19.75% annualized returns in the past three years and 10.89% in the last 5 years. The Baroda BNP Paribas Midcap Fund belongs to the Equity category of BNP Paribas Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,228Cr |
| 1Y Returns | 3.4% |
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