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 Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| PGIM India Midcap Opportunities Fund | Equity | Very High | 111.8% | 5star | ₹1,108 | |
| Axis Midcap Fund | Equity | Very High | 62.5% | 5star | ₹10,432 | |
| Mahindra Unnati Emerging Business Yojana | Equity | Very High | 77.0% | 4star | ₹631 | |
| Invesco India Mid Cap Fund | Equity | Very High | 68.1% | 4star | ₹1,424 | |
| Kotak Emerging Equity Scheme | Equity | Very High | 87.1% | 4star | ₹10,938 | |
| Nippon India Growth Fund | Equity | Very High | 81.5% | 4star | ₹9,031 | |
| DSP Midcap Fund | Equity | Very High | 62.6% | 4star | ₹10,916 | |
| Tata Mid Cap Growth Fund | Equity | Very High | 74.2% | 3star | ₹1,129 | |
| BNP Paribas Mid Cap Fund | Equity | Very High | 77.7% | 3star | ₹860 | |
| Edelweiss Mid Cap Fund | Equity | Very High | 84.1% | 3star | ₹1,215 | |
| Taurus Discovery (Midcap) Fund | Equity | Very High | 65.6% | 3star | ₹66 | |
| UTI Mid Cap Fund | Equity | Very High | 80.0% | 3star | ₹5,190 | |
| Baroda Pioneer Mid cap Fund | Equity | Very High | 75.9% | 3star | ₹55 | |
| HDFC Mid-Cap Opportunities Fund | Equity | Very High | 82.1% | 3star | ₹26,471 | |
| Franklin India Prima Fund | Equity | Very High | 73.0% | 3star | ₹7,308 | |
| 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 19.55% annualized returns in the last three years. In the last year, its returns were 111.85%. 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 111.85% 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 |
|---|---|
| AUM | ₹1,108Cr |
| 1Y Returns | 111.8% |
Axis Midcap Direct Plan Growth
Fund Performance: This fund has given 17.81% annualized returns in the last three years. In the last year, its returns were 62.45%. 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 62.45% 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 |
|---|---|
| AUM | ₹10,432Cr |
| 1Y Returns | 62.5% |
Mahindra Manulife Mid Cap Unnati Yojana Direct Growth
Fund Performance: This fund has given 14.75% annualized returns in the last three years. In the last year, its returns were 76.96%. 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 76.96% 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 |
|---|---|
| AUM | ₹631Cr |
| 1Y Returns | 77.0% |
Invesco India Mid Cap Fund Direct Growth
Fund Performance: This fund has given 14.25% annualized returns in the last three years. In the last year, its returns were 68.07%. 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 68.07% 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 |
|---|---|
| AUM | ₹1,424Cr |
| 1Y Returns | 68.1% |
Kotak Emerging Equity Fund Direct Growth
Fund Performance: This fund has given 14.19% annualized returns in the last three years. In the last year, its returns were 87.1%. 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 87.1% 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 |
|---|---|
| AUM | ₹10,938Cr |
| 1Y Returns | 87.1% |
Nippon India Growth Fund Direct Growth
Fund Performance: This fund has given 12.48% annualized returns in the last three years. In the last year, its returns were 81.52%. 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 81.52% 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 |
|---|---|
| AUM | ₹9,031Cr |
| 1Y Returns | 81.5% |
DSP Midcap Direct Plan Growth
Fund Performance: This fund has given 11.42% annualized returns in the last three years. In the last year, its returns were 62.58%. 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 62.58% 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 |
|---|---|
| AUM | ₹10,916Cr |
| 1Y Returns | 62.6% |
Tata Midcap Growth Direct Plan Growth
Fund Performance: This fund has given 14.15% annualized returns in the last three years. In the last year, its returns were 74.15%. 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 74.15% 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 ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,129Cr |
| 1Y Returns | 74.2% |
BNP Paribas Midcap Direct Growth
Fund Performance: This fund has given 13.54% annualized returns in the last three years. In the last year, its returns were 77.66%. 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 77.66% 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 ₹300.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹860Cr |
| 1Y Returns | 77.7% |
Edelweiss Mid Cap Direct Plan Growth
Fund Performance: This fund has given 11.68% annualized returns in the last three years. In the last year, its returns were 84.06%. 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 84.06% 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 |
|---|---|
| AUM | ₹1,215Cr |
| 1Y Returns | 84.1% |
Taurus Discovery (Midcap) Fund Direct Growth
Fund Performance: This fund has given 11.31% annualized returns in the last three years. In the last year, its returns were 65.57%. 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 65.57% 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 |
|---|---|
| AUM | ₹66Cr |
| 1Y Returns | 65.6% |
UTI Mid Cap Fund Direct Growth
Fund Performance: This fund has given 9.74% annualized returns in the last three years. In the last year, its returns were 80.01%. 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 80.01% 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 |
|---|---|
| AUM | ₹5,190Cr |
| 1Y Returns | 80.0% |
Baroda Midcap Direct Fund Growth
Fund Performance: This fund has given 9.55% annualized returns in the last three years. In the last year, its returns were 75.88%. 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 75.88% 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 |
|---|---|
| AUM | ₹55Cr |
| 1Y Returns | 75.9% |
HDFC Mid Cap Opportunities Direct Plan Growth
Fund Performance: This fund has given 9.43% annualized returns in the last three years. In the last year, its returns were 82.13%. 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 82.13% 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 ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹26,471Cr |
| 1Y Returns | 82.1% |
Franklin India Prima Direct Fund Growth
Fund Performance: This fund has given 9.14% annualized returns in the last three years. In the last year, its returns were 72.97%. 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 72.97% 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 ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,308Cr |
| 1Y Returns | 73.0% |
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