Mid Cap Mutual Funds

A Mid Cap Fund is a type of mutual fund that primarily invests in companies with a medium-range market capitalization—typically those ranked between Large Cap and Small Cap firms in terms of size. These companies often strike a balance between growth potential and risk. Compared to Large Cap stocks, Mid Cap companies generally offer higher opportunities for capital appreciation. At the same time, they tend to be more stable and less volatile than Small Cap stocks.

Investing in a Mid Cap fund allows individuals to gain exposure to a diversified basket of mid-sized companies without having to select individual stocks themselves. This makes it a convenient and cost-effective way to tap into the growth potential of this segment. 

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List of Mid Cap Mutual Funds

Filters
logo Motilal Oswal Midcap Fund-Dir Growth

9.39%

Fund Size (Cr.) - 30,401

logo Invesco India Midcap Fund - Direct Growth

15.72%

Fund Size (Cr.) - 6,641

logo Edelweiss Mid Cap Fund - Direct Growth

11.16%

Fund Size (Cr.) - 10,028

logo HDFC Mid-Cap Opportunities Fund - Direct Growth

6.24%

Fund Size (Cr.) - 79,718

logo Nippon India Growth Fund - Direct Growth

7.09%

Fund Size (Cr.) - 36,836

logo Mahindra Manulife Mid Cap Fund - Direct Growth

2.14%

Fund Size (Cr.) - 3,776

logo ITI Mid Cap Fund - Direct Growth

-0.81%

Fund Size (Cr.) - 1,201

logo Sundaram Mid Cap Fund - Direct Growth

7.63%

Fund Size (Cr.) - 12,344

logo Franklin India Prima Fund - Direct Growth

4.76%

Fund Size (Cr.) - 12,285

logo HSBC Midcap Fund - Direct Growth

4.75%

Fund Size (Cr.) - 11,470

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Why Invest in Mid Cap Mutual Funds?

Mid Cap Mutual Funds are appropriate for investors with a moderate to high risk appetite and a five- to seven-year time horizon because they provide the perfect balance between growth potential and risk. These funds make investments in medium-sized companies that have the potential to become a Large Cap in the future while offering less risk than Small Caps. They have greater growth potential than Large Cap funds and are less volatile than Small Cap funds. Mid Cap funds are a desirable option for long-term wealth development because they offer diversification, the chance to invest in future industry leaders, and are managed by knowledgeable fund managers who conduct in-depth research.

Popular Mid Cap Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 30,401
  • 3Y Return
  • 37.49%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 6,641
  • 3Y Return
  • 35.18%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 10,028
  • 3Y Return
  • 34.61%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 79,718
  • 3Y Return
  • 34.14%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 36,836
  • 3Y Return
  • 33.00%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 3,776
  • 3Y Return
  • 32.56%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,201
  • 3Y Return
  • 32.10%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 12,344
  • 3Y Return
  • 31.71%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 12,285
  • 3Y Return
  • 31.05%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 11,470
  • 3Y Return
  • 30.72%

FAQs

In 2025, some of the best Mid Cap funds based on recent performance, risk metrics, and expense ratios include Quant Mid Cap Fund, Motilal Oswal Midcap Fund, Edelweiss Mid Cap Fund, Mahindra Manulife Mid Cap Fund, and PGIM India Midcap Opportunities Fund. Before investing, review each fund’s 3- to 5-year CAGR, Sharpe ratio, and fund manager track record.
 

Mid Cap funds are ideally suited for long-term investors. You should stay invested for at least 5 to 7 years to ride out short-term volatility and fully benefit from the growth potential of mid-sized companies. Longer holding periods help maximise compounding returns and reduce the risk of short-term market fluctuations.
 

Your investment amount in Mid Cap funds should align with your risk appetite and investment goals. A balanced portfolio might allocate 20–30% to Mid Caps if you're moderately aggressive. Beginners can start with smaller amounts via SIPs, like ₹1,000–₹5,000 monthly, and gradually increase based on comfort and fund performance.
 

Yes, beginners can invest in Mid Cap funds, especially through Systematic Investment Plans (SIPs), which minimise risk through regular, small contributions. However, Mid Caps are more volatile than Large Caps, so beginners should ensure they understand the risk-reward profile and prefer investing for the long term.
 

Yes, Mid Cap funds are well-known for offering higher long-term returns compared to Large Caps, due to the faster growth potential of emerging companies. If invested over 5–7 years, these funds can deliver strong capital appreciation, though they may fluctuate more in the short run.
 

No, Mid Cap funds and blue chip stocks are different. Blue chip stocks refer to large, well-established, financially sound companies (usually part of Large Cap indices), while Mid Cap funds invest in medium-sized companies with high growth potential but higher risk. Mid Caps may become blue chips in the long term.

While Mid Cap funds can deliver strong returns over time, they are not as consistent as Large Cap funds due to market volatility. However, top-performing Mid Cap funds with good fund management and sectoral balance have shown the ability to deliver above-average, risk-adjusted returns across market cycles.

Ideally, having 1 to 2 well-performing Mid Cap funds is sufficient for portfolio diversification. Holding too many Mid Cap funds can lead to overlap and dilute returns. Instead, choose funds with different investment strategies or fund houses to ensure proper diversification within the Mid Cap segment.
 

Yes, Mid Cap Mutual Funds are generally considered safer than Small Cap Funds.
They invest in companies ranked 101–250 by market capitalization, offering better liquidity and lower volatility and risk than Small Caps, though they still carry moderate risk compared to Large Caps.
 

To choose the best Mid Cap fund, consider:

  1. 1. Past performance (3- to 5-year returns vs benchmark)
  2. 2. Fund manager’s track record
  3. 3. Expense ratio (lower is better)
  4. 4. Portfolio quality and diversification
  5. 5. Consistency of returns and downside protection
     

Evaluate your Mid Cap fund's performance by comparing its 3-year and 5-year CAGR with its benchmark and peers. Also, check metrics like alpha, Sharpe ratio, expense ratio, and portfolio quality. If your fund consistently beats its benchmark with reasonable risk, it's likely performing well.
 

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