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)
Axis Midcap FundEquityModerately High22.3%5star6,949
Invesco India Mid Cap FundEquityModerately High21.4%5star1,009
DSP Midcap FundEquityModerately High21.8%5star8,407
PGIM India Midcap Opportunities FundEquityModerately High43.1%4star374
Kotak Emerging Equity SchemeEquityModerately High18.7%4star7,668
Taurus Discovery (Midcap) FundEquityModerately High20.5%4star53
L&T Midcap FundEquityHigh14.8%4star5,776
Edelweiss Multi Asset Allocation FundEquityModerately High9.9%3star18
Tata Mid Cap Growth FundEquityModerately High20.1%3star875
Edelweiss Mid Cap FundEquityHigh21.5%3star926
Baroda Pioneer Mid cap FundEquityHigh27.2%3star51
Nippon India Growth FundEquityModerately High15.9%3star7,005
Franklin India Prima FundEquityModerately High12.3%3star6,337
HDFC Mid-Cap Opportunities FundEquityModerately High16.0%3star21,817
BNP Paribas Mid Cap FundEquityHigh17.7%3star708
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 14.32% annualized returns in the last three years. In the last year, its returns were 22.32%. 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 22.32% 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
AUM6,949Cr
1Y Returns22.3%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 8.31% annualized returns in the last three years. In the last year, its returns were 21.35%. 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 21.35% 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
AUM1,009Cr
1Y Returns21.4%

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 7.57% annualized returns in the last three years. In the last year, its returns were 21.84%. 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 21.84% 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
AUM8,407Cr
1Y Returns21.8%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 9.43% annualized returns in the last three years. In the last year, its returns were 43.15%. 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 43.15% 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
AUM374Cr
1Y Returns43.1%

Kotak Emerging Equity Fund Direct Growth

Fund Performance: This fund has given 6% annualized returns in the last three years. In the last year, its returns were 18.68%. 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 18.68% 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
AUM7,668Cr
1Y Returns18.7%

Taurus Discovery (Midcap) Fund Direct Growth

Fund Performance: This fund has given 5.67% annualized returns in the last three years. In the last year, its returns were 20.51%. 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 20.51% 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 ₹1,000.

Min Investment Amt₹5,000
AUM53Cr
1Y Returns20.5%

L&T Midcap Fund Direct Growth

Fund Performance: This fund has given 1.69% annualized returns in the last three years. In the last year, its returns were 14.81%. 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 14.81% 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
AUM5,776Cr
1Y Returns14.8%

Edelweiss Aggressive Hybrid Fund Direct Growth

Fund Performance: This fund has given 7.4% annualized returns in the last three years. In the last year, its returns were 9.94%. 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 9.94% 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
AUM18Cr
1Y Returns9.9%

Tata Midcap Growth Direct Plan Growth

Fund Performance: This fund has given 6.25% annualized returns in the last three years. In the last year, its returns were 20.1%. 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 20.1% 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 ₹500.

Min Investment Amt₹5,000
AUM875Cr
1Y Returns20.1%

Edelweiss Mid Cap Direct Plan Growth

Fund Performance: This fund has given 5.42% annualized returns in the last three years. In the last year, its returns were 21.53%. 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 21.53% 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
AUM926Cr
1Y Returns21.5%

Baroda Midcap Direct Fund Growth

Fund Performance: This fund has given 4.43% annualized returns in the last three years. In the last year, its returns were 27.21%. 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 27.21% 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
AUM51Cr
1Y Returns27.2%

Nippon India Growth Fund Direct Growth

Fund Performance: This fund has given 4.14% annualized returns in the last three years. In the last year, its returns were 15.89%. 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 15.89% 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
AUM7,005Cr
1Y Returns15.9%

Franklin India Prima Direct Fund Growth

Fund Performance: This fund has given 3.96% annualized returns in the last three years. In the last year, its returns were 12.26%. 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 12.26% 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
AUM6,337Cr
1Y Returns12.3%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: This fund has given 2.75% annualized returns in the last three years. In the last year, its returns were 16.02%. 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 16.02% 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
AUM21,817Cr
1Y Returns16.0%

BNP Paribas Midcap Direct Growth

Fund Performance: This fund has given 2.28% annualized returns in the last three years. In the last year, its returns were 17.66%. 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 17.66% 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
AUM708Cr
1Y Returns17.7%

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