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 High17.1%5star5,888
Axis Midcap FundEquityModerately High19.1%5star4,141
L&T Midcap FundEquityHigh7.6%5star5,992
Franklin India Prima FundEquityModerately High8.9%4star7,583
Invesco India Mid Cap FundEquityModerately High12.6%4star674
DSP BlackRock Mid Cap FundEquityModerately High17.3%4star6,957
Motilal Oswal Midcap 30 FundEquityModerately High18.3%3star1,812
Edelweiss Multi Asset Allocation FundEquityModerately High13.4%3star11
Baroda Pioneer Mid cap FundEquityHigh6.1%3star46
Edelweiss Mid Cap FundEquityHigh13.0%3star935
Tata Mid Cap Growth FundEquityModerately High16.5%3star773
Mirae Asset Midcap FundEquityModerately HighN.A3star1,388
ICICI Prudential Midcap FundEquityModerately High5.9%3star1,875
Nippon India Growth FundEquityModerately High13.1%3star6,844
HDFC Mid-Cap Opportunities FundEquityModerately High7.1%3star22,796
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 12.72% annualized returns in the last three years. In the last year, its returns were 17.13%. 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 17.13% 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
AUM5,888Cr
1Y Returns17.1%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 18.96% annualized returns in the last three years. In the last year, its returns were 19.15%. 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 19.15% 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
AUM4,141Cr
1Y Returns19.1%

L&T Midcap Fund Direct Growth

Fund Performance: This fund has given 11.19% annualized returns in the last three years. In the last year, its returns were 7.56%. 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 7.56% 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
AUM5,992Cr
1Y Returns7.6%

Franklin India Prima Direct Fund Growth

Fund Performance: This fund has given 10.48% annualized returns in the last three years. In the last year, its returns were 8.9%. 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 8.9% 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
AUM7,583Cr
1Y Returns8.9%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 14.37% annualized returns in the last three years. In the last year, its returns were 12.62%. 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 12.62% 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
AUM674Cr
1Y Returns12.6%

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 11.97% annualized returns in the last three years. In the last year, its returns were 17.33%. 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 17.33% 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
AUM6,957Cr
1Y Returns17.3%

Motilal Oswal Midcap 30 Fund Direct Growth

Fund Performance: This fund has given 9.18% annualized returns in the last three years. In the last year, its returns were 18.29%. 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 18.29% 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
AUM1,812Cr
1Y Returns18.3%

Edelweiss Aggressive Hybrid Fund Direct Growth

Fund Performance: This fund has given 12.27% annualized returns in the last three years. In the last year, its returns were 13.45%. 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 13.45% 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 ₹500.

Min Investment Amt₹5,000
AUM11Cr
1Y Returns13.4%

Baroda Midcap Direct Fund Growth

Fund Performance: This fund has given 7.45% annualized returns in the last three years. In the last year, its returns were 6.14%. 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 6.14% 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
AUM46Cr
1Y Returns6.1%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: This fund has given 12.23% annualized returns in the last three years. In the last year, its returns were 12.97%. 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 12.97% 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
AUM935Cr
1Y Returns13.0%

Tata Midcap Growth Direct Plan Growth

Fund Performance: This fund has given 12.39% annualized returns in the last three years. In the last year, its returns were 16.5%. 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 16.5% 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 ₹500.

Min Investment Amt₹5,000
AUM773Cr
1Y Returns16.5%

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
AUM1,388Cr
1Y ReturnsNA

ICICI Prudential Midcap Direct Plan Growth

Fund Performance: This fund has given 9.73% annualized returns in the last three years. In the last year, its returns were 5.9%. 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 5.9% 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
AUM1,875Cr
1Y Returns5.9%

Nippon India Growth Fund Direct Growth

Fund Performance: This fund has given 11.76% annualized returns in the last three years. In the last year, its returns were 13.11%. 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 13.11% 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
AUM6,844Cr
1Y Returns13.1%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: This fund has given 9.03% annualized returns in the last three years. In the last year, its returns were 7.07%. 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 7.07% 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
AUM22,796Cr
1Y Returns7.1%

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