Mid Cap Funds – List of Mid Cap Mutual Funds in India

When it comes to investing in equity mutual funds, choosing the scheme with a focus on the right market capitalization is paramount to meeting your investment objectives. The market capitalization of a company helps understand the benefits of investing in it and the associated risks. There are different types of equity mutual fund schemes categorized based on the market capitalization of the companies that they prefer to invest in. Here, we will explore Mid Cap Mutual Funds and talk about some essential aspects of these schemes.

Mid Cap Mutual Funds

Mid Cap Funds invest in equity and equity related instruments of mid-cap companies. According to the Securities and Exchange Board of India (SEBI), mid-cap companies are those which are ranked between 101 and 250 in the list of companies according to market capitalization. To give you a fair idea, the market capitalization of the 101st company on the list is around Rs. 30,000 crores, while the market cap of the 250th company is around Rs. 9,500 crores.

Since mid-cap companies fall between the small-cap and large-cap companies, they offer certain advantages and disadvantages over both of them. Mid-cap funds usually offer better returns than the large-cap funds but are more volatile than them. On the other hand, they are more stable than the small-cap funds but tend to offer lesser returns. In a nutshell, mid-cap mutual funds are the perfect combination of risk and return. As an investor, if you select the schemes prudently having a great selection of stocks, diversification across sectors, and good fund manager, then you can expect much better returns.

Invest in Mid Cap Equity Funds

Mid Cap Mutual Funds carry a higher risk than Large Cap Funds. Hence, you must opt for these schemes if you have higher risk tolerance. Also, you need an investment horizon of around 8-10 years. Remember, the mid-cap segment holds a lot of opportunities for investment and wealth creation. Hence, it is important to choose a scheme which focuses a lot on researching the market and finding good investment opportunities. If you are averse to taking risks, then you must reconsider your decision to invest in mid-cap funds. Also, ensure that you consider your financial goals along with the risk preference and investment horizon before deciding on investing in mid-cap funds.

Important Features of Mid Cap Funds

Keep these aspects in mind before investing in mid-cap funds: 

How has the Mid Cap Mutual Fund Scheme performed?

Every scheme has a rating and shares its performance history with prospective investors on its official website. Ensure that you go through these details and assess the performance of the scheme. Further, look at how the fund has performed through bearish and bullish market cycles. It is important to have a picture of the highs and lows so that you make informed selling decisions after investing.

Recommended for Long-Term Investors

Most equity investments are volatile and hence staying invested for a longer period helps in securing good returns. Mid-cap companies are in the phase of growth and a few of them will be tomorrow’s large-cap companies. Hence, it is important to have an investment horizon f eight to ten years to benefit from investing in mid-cap stocks.

Don’t ignore the Expense Ratio of the scheme

All fund houses charge an expense ratio as administrative and fund management costs. It is a small percentage of the total assets of the fund. According to SEBI’s mandate, the upper limit of the expense ratio is 2.50%. Finding a scheme with a lower expense ratio means better returns on your investment.

How old are you?

Mid Cap Funds offer great compounding benefits to investors. However, compounding requires time and offers the best results to young investors. If you are nearing retirement, then you need to choose the schemes keeping your age in mind. Mid-cap funds are usually recommended to young investors having age in hand to benefit from the power of compounding.

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Who is managing your fund?

At the end of the day, the fund manager is the one who makes the decisions about buying/selling stocks from the portfolio. Hence, it is important to look at the performance of the fund manager to ensure that your money is in ‘good’ hands.

Also, the fund house needs to be selected carefully. Look at the performance of the fund house over the years and how the research and investment team have countered market volatility in the past.

How much risk do you want to take?

Every equity scheme has a different risk level associated with it. Hence, it is important to be clear about the risk that you are willing to take with your investment. This will help you decide if Mid Cap Funds are good for you or not.

Tax Implications

Mid Cap mutual funds are subject to dividend distribution tax and capital gains tax as explained below:

Dividend Distribution Tax (DDT)

As mandated by SEBI, all fund houses deduct a DDT of 10% before paying out dividends to unitholders.

Capital Gains Tax

When you redeem the units of a Mid Cap Fund, you earn taxable capital gains. The rate at which you will be taxed depends on the period for which you stayed invested in the scheme – the holding period. The tax rates are as follows:

  • Short Term Capital Gain (STCG) – A holding period of up to one year. STCG is taxed at 15%.
  • Long Term Capital Gain (LTCG) – A holding period of more than one year. There is no tax on LTCG of up to Rs. 1 lakh. Above this amount, LTCG is taxed at the rate of 10% without the benefit of indexation.

List of Mid Cap Funds in India

It is important to research the market and find schemes which are best suited to your financial goals. Keeping the factors mentioned above in mind can help. Here is a list of mid cap mutual funds which have offered the best 5-year returns.

List of Mid Cap Funds in India
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
HDFC Mid Cap Opportunities Direct Plan Growth -16.46% 4.28% 10.91% 1.21% 58% Equity
(Mid Cap)
Moderately High
UTI Mid Cap Fund Direct Growth -15.5% 1.02% 8.52% 1.38% 33% Equity
(Mid Cap)
Moderately High
Invesco India Mid Cap Fund Direct Growth -12.19% 7.42% 11.8% 0.99% 17% Equity
(Mid Cap)
Moderately High
Aditya Birla Sun Life Mid Cap Direct Fund Growth -18.73% 1.21% 9.32% 1.27% 19% Equity
(Mid Cap)
Moderately High
Edelweiss Mid Cap Direct Plan Growth -14.04% 5.86% 12.11% 0.68% 332% Equity
(Mid Cap)
High
Tata Midcap Growth Direct Plan Growth -6.19% 6.39% 11.27% 0.82% 7% Equity
(Mid Cap)
Moderately High
BNP Paribas Midcap Direct Growth -10.42% 3.19% 9.91% 0.89% 39% Equity
(Mid Cap)
High
Edelweiss Large & Mid Cap Direct Plan Growth -7.34% 8.06% 10% 0.92% 255% Equity
(Large & Mid Cap)
Moderately High
BOI AXA Large & Mid Cap Equity Fund Direct Growth -17% 4.1% 5.66% 1.59% 56% Equity
(Large & Mid Cap)
Moderately High
Baroda Midcap Direct Fund Growth -15.21% 3.58% -0.07% 1.82% 153% Equity
(Mid Cap)
High
Sundaram Large and Mid Cap Fund Direct Growth -8.62% 11.09% 11.57% 1.7% 87% Equity
(Large & Mid Cap)
Moderately High
Sundaram Mid Cap Fund Direct Growth -16.65% 2.17% 10.08% 1.16% 45% Equity
(Mid Cap)
Moderately High
LIC MF Large & Mid Cap Fund Direct Growth -6.24% 10.82% NA 1.56% 83% Equity
(Large & Mid Cap)
High
ICICI Prudential Large & Mid Cap Fund Direct Plan Growth -6.77% 5.67% 7.19% 1.23% 137% Equity
(Large & Mid Cap)
Moderately High
SBI Magnum Mid Cap Direct Plan Growth -14.78% -1.24% 8.76% 1.25% 27% Equity
(Mid Cap)
Moderately High
Tata Large & Mid Cap Fund Direct Plan Growth 1.82% 7.98% 11.01% 0.69% 10% Equity
(Large & Mid Cap)
Moderately High
BOI AXA Mid & Small Cap Equity & Debt Fund Direct Growth -21.81% 2.86% NA 1.8% 56% Hybrid
(Aggressive)
Moderately High
Kotak Equity Opportunities Fund Direct Growth -3.81% 8.72% 11.92% 1.05% 20% Equity
(Large & Mid Cap)
Moderately High
DSP Midcap Direct Plan Growth -9.72% 6.24% 12.73% 1.0% 23% Equity
(Mid Cap)
Moderately High
Quant Large and Mid Cap Fund Direct Growth -9.91% 4.07% 11.87% 2.38% 55% Equity
(Small Cap)
Moderately High

Please note that this is a list of Mid cap funds in India which have performed well and not a list of recommended schemes that you should invest in. We strongly recommend that you consider your investment goals, risk tolerance, and investment horizon before investing. Also, you might want to talk to an investment advisor to clear any doubts.


 

Asset Management Company
Axis Mutual Fund DHFL Pramerica Mutual Fund Principal Mutual Fund
Kotak Mutual Fund Sundaram Mutual Fund BOI Axa Mutual Fund
Reliance Mutual Fund Invesco Mutual Fund Union Mutual Fund
HDFC Mutual Fund LIC Mutual Fund Taurus Mutual Fund
SBI Mutual Fund JM Financial Mutual Fund Edelweiss Mutual Fund
ICICI Prudential Mutual Fund Baroda Pioneer Mutual Fund Essel Mutual Fund
Aditya Birla Sunlife Mutual Fund Canara Robeco Mutual Fund Mahindra Mutual Fund
UTI Mutual Fund HSBC Mutual Fund Quantum Mutual Fund
Franklin Templeton Mutual Fund IDBI Mutual Fund PPFAS Mutual Fund
IDFC Mutual Fund Indiabulls Mutual Fund IIFL Mutual Fund
DSP Blackrock Mutual Fund Motilal Oswal Mutual Fund Escorts Mutual Fund
Tata Mutual Fund BNP Paribas Mutual Fund
L and T Mutual Fund Mirae Asset Mutual Fund