Best Mid Cap Mutual Funds

A Mid cap fund is an investment fund that predominantly invests in companies with medium market capitalization. The ‘cap’ in the midcap stands for market capitalization which is the total value of the company obtained by multiplying the price of a share and the total number of shares.

Mid cap mutual funds invest in companies with a market capitalization in between Rs. 500 crores to Rs. 10,000 crores. The size of the company will have an impact on the returns as well as the risks involved.

During bull runs, the mid cap funds can give returns better than the blue-chip or large cap funds as mid cap companies can unlock their true potential.

However, during bear markets, mid cap funds can lose substantial value as investors move towards safer options.

It is crucial to understand that the market cap of companies in the portfolio will impact the returns of your mutual fund. If you plan on investing in midcap mutual funds, you will have range of best mid cap mutual funds to choose from including mid cap index funds, mid cap value funds, and mid cap growth mutual funds.

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Top 10 Mid Cap Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Kotak Emerging Equity SchemeEquityModerately High12.4%5star5,341
Axis Midcap FundEquityModerately High17.5%5star3,551
L&T Midcap FundEquityHigh1.7%5star5,928
Franklin India Prima FundEquityModerately High7.5%4star7,510
Invesco India Mid Cap FundEquityModerately High9.1%4star645
DSP BlackRock Mid Cap FundEquityModerately High12.2%4star6,691
Baroda Pioneer Mid cap FundEquityHigh2.5%3star47
Edelweiss Multi Asset Allocation FundEquityModerately High12.6%3star9
Motilal Oswal Midcap 30 FundEquityModerately High15.1%3star1,625
Edelweiss Mid Cap FundEquityHigh8.4%3star945
Tata Mid Cap Growth FundEquityModerately High12.1%3star747
Mirae Asset Midcap FundEquityModerately HighN.A3star1,000
ICICI Prudential Midcap FundEquityModerately High3.6%3star1,847
Reliance Growth FundEquityModerately High8.6%3star6,632
HDFC Mid-Cap Opportunities FundEquityModerately High3.3%3star22,637
View All Top 10 Mid Cap Mutual Funds

Features of Mid Cap Mutual Fund

Mid cap mutual funds are suitable for diversifying your investments in companies falling in 101 to 250 ranks based on the market capitalization.

The mid cap mutual funds serve as a tool allowing investors to put money into companies that are expected to grow in the near future. Investors can get higher profits as mid cap companies do well in a stable growing economy. Mid cap companies are also more responsive to change and opportunity.

On the other hand, these companies are more vulnerable to market falls and business down cycles. The lower financial muscle diminishes the ability to withstand slowdowns. However, mid cap companies are considered to be placed in a sweet spot as they possess the flexibility of small cap and relative stability of large caps.

The midcap mutual funds enable you to invest and generate returns from this mid cap companies. It also ensures that you do not make the mistake of investing in a wrong company as most fund houses do due diligence before investing in any mid cap company.

Taxability

Mid cap mutual funds as the name suggest invests in equity and equity-related securities of mid cap companies. This means that the tax treatment for mid cap mutual funds is in line with other equity mutual funds. For equity and balanced funds, investment for over period of less than 12 months is considered as short-term and warrants a short-term capital gain tax of 15 per cent. So, your returns from mid cap mutual funds will be taxed at 15 per cent if the fund was sold before 12 months.

On the other hand, if the mid cap mutual funds are sold after 12 months, a long-term capital gain tax of 10 per cent is levied provided the returns are more than 1 lakh. Mid cap mutual funds linked to ELSS plan can help you save taxes under Section 80C. However, the ELSS plans come with a lock-in period of three years.

Who Are These Funds Suited For?

Mid cap mutual funds invest in midsize companies which have the potential to turn into large companies. If the companies perform as per the expectations, you will generate huge returns. However, if things go south, you will have to bear huge losses.

So, mid cap mutual funds are ideal for investors with a high-risk appetite. If you are looking for long-term investment and would not be affected with short-term volatility, then investing in any of the best performing mid cap mutual funds could be an ideal investment instrument for you.

Mid cap mutual funds are an ideal investment for anyone who is looking to diversify their portfolio. Mid cap funds, unlike smallcap funds, are more stable and have considerably figured out their business model. On the other hand, mid cap funds also have more growth potential than the large-cap funds since the companies are yet to reach their peak. Investors with above-average risk appetite seeking higher returns with comparatively more risk should invest in mid cap mutual funds.

Major Advantages

  • Mid cap mutual funds offer a range of benefits to the investors including the opportunity for long-term wealth creation. You can start SIP to inculcate the habit of regular saving and regularly invest to meet various goals.
  • Mid cap mutual funds invest in companies that are relatively lesser-known, creating opportunities for huge gains. Mid cap companies have a comparatively lower risk than small cap companies and yet come with a potential for returns higher than the large cap companies.
  • Mid cap mutual funds provide a high amount of flexibility to the fund manager. If you invest in best mid cap growth mutual funds, the fund will reinvest the profit allowing you to earn returns on profits leading to huge returns over a long-term investment horizon.
  • Certain mid cap companies operate in the niche market, allowing you to diversify your portfolio while balancing the risk. Since mid cap companies are highly volatile in changing market conditions, seasoned investors can earn decent returns during bull markets.

Let's have a closer look

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

Kotak Emerging Equity Fund Direct Growth

Fund Performance: This fund has given 11.49% annualized returns in the last three years. In the last year, its returns were 12.43%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.43% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM5,341Cr
1Y Returns12.4%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 18.2% annualized returns in the last three years. In the last year, its returns were 17.5%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 17.5% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM3,551Cr
1Y Returns17.5%

L&T Midcap Fund Direct Growth

Fund Performance: This fund has given 10.61% annualized returns in the last three years. In the last year, its returns were 1.66%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 1.66% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM5,928Cr
1Y Returns1.7%

Franklin India Prima Direct Fund Growth

Fund Performance: This fund has given 9.98% annualized returns in the last three years. In the last year, its returns were 7.51%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.51% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM7,510Cr
1Y Returns7.5%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 12.8% annualized returns in the last three years. In the last year, its returns were 9.11%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.11% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹1,000
AUM645Cr
1Y Returns9.1%

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 10.98% annualized returns in the last three years. In the last year, its returns were 12.24%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.24% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM6,691Cr
1Y Returns12.2%

Baroda Midcap Direct Fund Growth

Fund Performance: This fund has given 6.61% annualized returns in the last three years. In the last year, its returns were 2.45%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 2.45% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹2,00,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹2,00,000
AUM47Cr
1Y Returns2.5%

Edelweiss Aggressive Hybrid Fund Direct Growth

Fund Performance: This fund has given 11.37% annualized returns in the last three years. In the last year, its returns were 12.63%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.63% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM9Cr
1Y Returns12.6%

Motilal Oswal Midcap 30 Fund Direct Growth

Fund Performance: This fund has given 7.82% annualized returns in the last three years. In the last year, its returns were 15.06%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 15.06% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM1,625Cr
1Y Returns15.1%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: This fund has given 10.33% annualized returns in the last three years. In the last year, its returns were 8.45%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.45% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM945Cr
1Y Returns8.4%

Tata Midcap Growth Direct Plan Growth

Fund Performance: This fund has given 11.5% annualized returns in the last three years. In the last year, its returns were 12.09%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.09% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM747Cr
1Y Returns12.1%

Mirae Asset Midcap Fund Direct Growth

Fund Performance: This fund has given NA annualized returns in the last three years. In the last year, its returns were NA. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing NA returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,000Cr
1Y ReturnsNA

ICICI Prudential Midcap Direct Plan Growth

Fund Performance: This fund has given 8.79% annualized returns in the last three years. In the last year, its returns were 3.58%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 3.58% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM1,847Cr
1Y Returns3.6%

Nippon India Growth Fund Direct Growth

Fund Performance: This fund has given 10.81% annualized returns in the last three years. In the last year, its returns were 8.59%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.59% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹100
AUM6,632Cr
1Y Returns8.6%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: This fund has given 7.69% annualized returns in the last three years. In the last year, its returns were 3.31%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 3.31% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM22,637Cr
1Y Returns3.3%

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