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Best Mid Cap Mutual Funds

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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Top 10 Mid Cap Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
PGIM India Midcap Opportunities FundEquityVery High66.5%5₹3,388
Axis Midcap FundEquityVery High45.1%5₹15,988
Edelweiss Mid Cap FundEquityVery High52.8%4₹1,750
Kotak Emerging Equity FundEquityVery High49.9%4₹16,485
Nippon India Growth FundEquityVery High51.3%4₹11,919
Mahindra Manulife Mid Cap Unnati Yojana FundEquityVery High55.2%4₹845
Invesco India Mid Cap FundEquityVery High45.8%4₹2,061
DSP Midcap FundEquityVery High29.2%4₹14,190
Baroda Midcap Direct FundEquityVery High57.3%3₹85
SBI Magnum Mid Cap FundEquityVery High58.5%3₹6,426
BNP Paribas Midcap FundEquityVery High51.3%3₹1,089
Tata Midcap Growth FundEquityVery High44.2%3₹1,460
UTI Mid Cap FundEquityVery High48.4%3₹6,695
ICICI Prudential Midcap FundEquityVery High50.2%3₹3,178
Taurus Discovery (Midcap) FundEquityVery High36.4%3₹78
View All Top 10 Mid Cap Mutual Funds

Features of Mid Cap Funds

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.

Taxability

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.

Who Are These Funds Suited For?

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.

Major Advantages

Following is a list of notable advantages of the best mid-cap mutual funds:

  • Significant growth potential: Mid-cap companies are probable future large-cap companies. This gives them great expansion potential. During this journey, they can deliver huge returns and outperform large-cap mutual funds.
  • Diversification: The distribution of investment among stocks of different mid cap companies cushions them against economic shocks. As a result, the best mid cap mutual funds bear lesser risk compared to direct investment in such stocks. 
  • Low investment amount: Individuals can start investing as low as Rs.500 in mid cap equity-based funds. It allows investors to diversify their investments across different schemes to minimise concentrated risk. 
  • Transparency: The Securities and Exchange Board of India (SEBI) closely mandates all mid-cap mutual funds to display their NAVs, expense ratios, and month-end portfolios on their websites. The apex body also closely regulates these data.

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.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: The PGIM India Midcap Opportunities Fund has given 36% annualized returns in the past three years and 23.58% 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₹3,388Cr
1Y Returns66.5%

Axis Midcap Direct Plan Growth

Fund Performance: The Axis Midcap Fund has given 27.62% annualized returns in the past three years and 24.24% 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 ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹15,988Cr
1Y Returns45.1%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: The Edelweiss Mid Cap Fund has given 26.95% annualized returns in the past three years and 20.74% 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₹1,750Cr
1Y Returns52.8%

Kotak Emerging Equity Fund Direct Growth

Fund Performance: The Kotak Emerging Equity Fund has given 26.4% annualized returns in the past three years and 19.95% 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₹16,485Cr
1Y Returns49.9%

Nippon India Growth Fund Direct Growth

Fund Performance: The Nippon India Growth Fund has given 24.86% annualized returns in the past three years and 19.38% 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₹11,919Cr
1Y Returns51.3%

Mahindra Manulife Mid Cap Unnati Yojana Direct Growth

Fund Performance: The Mahindra Manulife Mid Cap Unnati Yojana Fund has given 24.79% annualized returns in the past three years and null% in the last 5 years. 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₹845Cr
1Y Returns55.2%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: The Invesco India Mid Cap Fund has given 24% annualized returns in the past three years and 20.48% 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₹2,061Cr
1Y Returns45.8%

DSP Midcap Direct Plan Growth

Fund Performance: The DSP Midcap Fund has given 21.2% annualized returns in the past three years and 16.94% in the last 5 years. The DSP Midcap Fund belongs to the Equity category of DSP Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in DSP Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹14,190Cr
1Y Returns29.2%

Baroda Midcap Direct Fund Growth

Fund Performance: The Baroda Midcap Direct Fund has given 27.49% annualized returns in the past three years and 19.17% 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₹85Cr
1Y Returns57.3%

SBI Magnum Mid Cap Direct Plan Growth

Fund Performance: The SBI Magnum Mid Cap Fund has given 26.23% annualized returns in the past three years and 16.35% 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₹6,426Cr
1Y Returns58.5%

BNP Paribas Midcap Direct Growth

Fund Performance: The BNP Paribas Midcap Fund has given 25.07% annualized returns in the past three years and 18.26% in the last 5 years. The BNP Paribas Midcap Fund belongs to the Equity category of BNP Paribas Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in BNP Paribas Midcap Fund via lump sum is ₹5,000 and via SIP is ₹300.

Min Investment Amt₹5,000
AUM₹1,089Cr
1Y Returns51.3%

Tata Midcap Growth Direct Plan Growth

Fund Performance: The Tata Midcap Growth Fund has given 25.02% annualized returns in the past three years and 19.41% in the last 5 years. The Tata Midcap Growth Fund belongs to the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Midcap Growth Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,460Cr
1Y Returns44.2%

UTI Mid Cap Fund Direct Growth

Fund Performance: The UTI Mid Cap Fund has given 24.06% annualized returns in the past three years and 17.87% 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₹6,695Cr
1Y Returns48.4%

ICICI Prudential Midcap Direct Plan Growth

Fund Performance: The ICICI Prudential Midcap Fund has given 20.64% annualized returns in the past three years and 17.38% in the last 5 years. The ICICI Prudential Midcap Fund belongs to the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Midcap Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹3,178Cr
1Y Returns50.2%

Taurus Discovery (Midcap) Fund Direct Growth

Fund Performance: The Taurus Discovery (Midcap) Fund has given 20.1% annualized returns in the past three years and 17.32% in the last 5 years. The Taurus Discovery (Midcap) Fund belongs to the Equity category of Taurus Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Taurus Discovery (Midcap) Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹78Cr
1Y Returns36.4%

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