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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)
PGIM India Midcap Opportunities FundEquityVery High101.5%5star1,952
Axis Midcap FundEquityVery High67.4%5star12,813
Kotak Emerging Equity SchemeEquityVery High84.0%4star14,133
Edelweiss Mid Cap FundEquityVery High90.6%4star1,486
Mahindra Unnati Emerging Business YojanaEquityVery High82.4%4star750
Nippon India Growth FundEquityVery High82.4%4star10,262
Invesco India Mid Cap FundEquityVery High70.2%4star1,706
DSP Midcap FundEquityVery High60.8%4star12,869
BNP Paribas Mid Cap FundEquityVery High80.9%3star974
Tata Mid Cap Growth FundEquityVery High76.9%3star1,282
UTI Mid Cap FundEquityVery High81.4%3star5,895
Baroda Pioneer Mid cap FundEquityVery High78.6%3star65
ICICI Prudential Midcap FundEquityVery High84.5%3star2,839
Taurus Discovery (Midcap) FundEquityVery High63.7%3star74
HDFC Mid-Cap Opportunities FundEquityVery High76.5%3star29,508
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.

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 28.87% annualized returns in the last three years. In the last year, its returns were 101.52%. 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 101.52% 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
AUM1,952Cr
1Y Returns101.5%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 23.11% annualized returns in the last three years. In the last year, its returns were 67.37%. 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 67.37% 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
AUM12,813Cr
1Y Returns67.4%

Kotak Emerging Equity Fund Direct Growth

Fund Performance: This fund has given 21.49% annualized returns in the last three years. In the last year, its returns were 83.95%. 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 83.95% 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
AUM14,133Cr
1Y Returns84.0%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: This fund has given 21.46% annualized returns in the last three years. In the last year, its returns were 90.64%. 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 90.64% 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
AUM1,486Cr
1Y Returns90.6%

Mahindra Manulife Mid Cap Unnati Yojana Direct Growth

Fund Performance: This fund has given 21.16% annualized returns in the last three years. In the last year, its returns were 82.41%. 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 82.41% 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
AUM750Cr
1Y Returns82.4%

Nippon India Growth Fund Direct Growth

Fund Performance: This fund has given 20.9% annualized returns in the last three years. In the last year, its returns were 82.42%. 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 82.42% 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
AUM10,262Cr
1Y Returns82.4%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 20.5% annualized returns in the last three years. In the last year, its returns were 70.24%. 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 70.24% 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
AUM1,706Cr
1Y Returns70.2%

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 17.99% annualized returns in the last three years. In the last year, its returns were 60.78%. 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 60.78% 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
AUM12,869Cr
1Y Returns60.8%

BNP Paribas Midcap Direct Growth

Fund Performance: This fund has given 21.45% annualized returns in the last three years. In the last year, its returns were 80.87%. 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 80.87% 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 ₹300.

Min Investment Amt₹5,000
AUM974Cr
1Y Returns80.9%

Tata Midcap Growth Direct Plan Growth

Fund Performance: This fund has given 21.44% annualized returns in the last three years. In the last year, its returns were 76.88%. 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 76.88% 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
AUM1,282Cr
1Y Returns76.9%

UTI Mid Cap Fund Direct Growth

Fund Performance: This fund has given 19.37% annualized returns in the last three years. In the last year, its returns were 81.4%. 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 81.4% 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
AUM5,895Cr
1Y Returns81.4%

Baroda Midcap Direct Fund Growth

Fund Performance: This fund has given 18.09% annualized returns in the last three years. In the last year, its returns were 78.58%. 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 78.58% 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 ₹500.

Min Investment Amt₹5,000
AUM65Cr
1Y Returns78.6%

ICICI Prudential Midcap Direct Plan Growth

Fund Performance: This fund has given 17.56% annualized returns in the last three years. In the last year, its returns were 84.45%. 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 84.45% 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 ₹100.

Min Investment Amt₹5,000
AUM2,839Cr
1Y Returns84.5%

Taurus Discovery (Midcap) Fund Direct Growth

Fund Performance: This fund has given 16.52% annualized returns in the last three years. In the last year, its returns were 63.69%. 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 63.69% 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
AUM74Cr
1Y Returns63.7%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: This fund has given 15.16% annualized returns in the last three years. In the last year, its returns were 76.45%. 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 76.45% 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
AUM29,508Cr
1Y Returns76.5%

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