Home>Mutual Funds>Category>Best Mid Cap Mutual Funds

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.

Why invest with Groww?

— Registered with SEBI, AMFI & BSE

— Paperless sign up on web & app

— Expert recommendations

— ZERO fees !

Sign Up

Top 10 Mid Cap Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Axis Midcap FundEquityVery High40.3%5star8,608
PGIM India Midcap Opportunities FundEquityVery High70.2%5star713
Invesco India Mid Cap FundEquityVery High37.2%4star1,341
Kotak Emerging Equity SchemeEquityVery High45.5%4star9,162
DSP Midcap FundEquityVery High34.9%4star9,815
Tata Mid Cap Growth FundEquityVery High40.2%3star997
Nippon India Growth FundEquityVery High40.2%3star8,154
Edelweiss Mid Cap FundEquityVery High50.5%3star1,061
Edelweiss Multi Asset Allocation FundEquityVery High27.4%3star25
Taurus Discovery (Midcap) FundEquityVery High40.2%3star59
Baroda Pioneer Mid cap FundEquityVery High47.4%3star50
Franklin India Prima FundEquityVery High41.9%3star6,836
UTI Mid Cap FundEquityVery High48.5%3star4,665
HDFC Mid-Cap Opportunities FundEquityVery High42.5%3star23,988
L&T Midcap FundEquityVery High33.9%3star5,882
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.

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 20.2% annualized returns in the last three years. In the last year, its returns were 40.27%. 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 40.27% 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
AUM8,608Cr
1Y Returns40.3%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 19.31% annualized returns in the last three years. In the last year, its returns were 70.23%. 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 70.23% 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
AUM713Cr
1Y Returns70.2%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 15.87% annualized returns in the last three years. In the last year, its returns were 37.16%. 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 37.16% 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
AUM1,341Cr
1Y Returns37.2%

Kotak Emerging Equity Fund Direct Growth

Fund Performance: This fund has given 15.1% annualized returns in the last three years. In the last year, its returns were 45.52%. 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 45.52% 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
AUM9,162Cr
1Y Returns45.5%

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 12.65% annualized returns in the last three years. In the last year, its returns were 34.87%. 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 34.87% 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
AUM9,815Cr
1Y Returns34.9%

Tata Midcap Growth Direct Plan Growth

Fund Performance: This fund has given 14.37% annualized returns in the last three years. In the last year, its returns were 40.2%. 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 40.2% 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
AUM997Cr
1Y Returns40.2%

Nippon India Growth Fund Direct Growth

Fund Performance: This fund has given 13.38% annualized returns in the last three years. In the last year, its returns were 40.2%. 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 40.2% 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
AUM8,154Cr
1Y Returns40.2%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: This fund has given 13.34% annualized returns in the last three years. In the last year, its returns were 50.45%. 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 50.45% 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
AUM1,061Cr
1Y Returns50.5%

Edelweiss Aggressive Hybrid Fund Direct Growth

Fund Performance: This fund has given 12.2% annualized returns in the last three years. In the last year, its returns were 27.44%. 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 27.44% 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
AUM25Cr
1Y Returns27.4%

Taurus Discovery (Midcap) Fund Direct Growth

Fund Performance: This fund has given 11.91% annualized returns in the last three years. In the last year, its returns were 40.24%. 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 40.24% 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
AUM59Cr
1Y Returns40.2%

Baroda Midcap Direct Fund Growth

Fund Performance: This fund has given 11.21% annualized returns in the last three years. In the last year, its returns were 47.38%. 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 47.38% 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
AUM50Cr
1Y Returns47.4%

Franklin India Prima Direct Fund Growth

Fund Performance: This fund has given 11.19% annualized returns in the last three years. In the last year, its returns were 41.94%. 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 41.94% 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
AUM6,836Cr
1Y Returns41.9%

UTI Mid Cap Fund Direct Growth

Fund Performance: This fund has given 10.97% annualized returns in the last three years. In the last year, its returns were 48.51%. 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 48.51% 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
AUM4,665Cr
1Y Returns48.5%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: This fund has given 10.85% annualized returns in the last three years. In the last year, its returns were 42.51%. 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 42.51% 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
AUM23,988Cr
1Y Returns42.5%

L&T Midcap Fund Direct Growth

Fund Performance: This fund has given 8.21% annualized returns in the last three years. In the last year, its returns were 33.94%. 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 33.94% 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
AUM5,882Cr
1Y Returns33.9%

Explore all Mutual Funds on Groww

Explore Mutual Funds
ⓒ 2016-2021 Groww. All rights reserved, Built with in India