Best Mid Cap Mutual Funds in India (2025)

A mid cap mutual fund primarily invests in mid-sized companies, offering relatively higher returns than large caps with lower risk compared to small caps. Below, you’ll find the current market’s top mid-cap funds. 

Mid cap mutual funds concentrate on stocks ranked from 101 to 250 in market capitalisation. They provide growth opportunities with lower volatility compared to small caps, making them ideal for long-term investors with a strong grasp of the market and a high-risk tolerance.

Best 10 Mid Cap Mutual Funds

The following is an educational list of the top mid cap mutual funds in India in 2025:

Fund Name	Fund Size (Rs. in cr.)	Expense Ratio (%)	CAGR 3Y (%)	CAGR 5Y (%)
Quant Mid Cap Fund	8,891.20	0.59	22.47	32.73
Motilal Oswal Midcap Fund	26,421.09	0.65	29.93	30.78
Edelweiss Mid Cap Fund	8,666.49	0.38	23.45	29.35
Mahindra Manulife Mid Cap Fund	3,529.04	0.46	21.52	27.60
PGIM India Midcap Opp Fund	11,284.53	0.46	11.02	27.58
Nippon India Growth Fund	35,277.81	0.78	22.54	27.42
HDFC Mid-Cap Opportunities Fund	76,060.89	0.76	24.25	27.15
Invesco India Midcap Fund	6,149.96	0.58	21.97	26.80
SBI Magnum Midcap Fund	21,818.37	0.80	16.07	26.19
Kotak Emerging Equity Fund	53,078.98	0.38	19.78	25.68

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The list of top mid cap funds is from 20th January 2025 and the data is derived from Tickertape Mutual Fund Screener, using the following filters:

• Category: Mid Cap Funds
• Plan: Growth
• CAGR 5Y: Sorted from Highest to Lowest

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the top 10 Mid Cap Mutual Funds

Here is a brief overview about the top mid cap mutual funds in India in 2024. These are some of the best performing mid cap mutual funds in India:

Quant Mid Cap Fund

Quant Mid Cap Fund is an open-ended equity scheme from Quant Mutual Fund that focuses on investing predominantly in mid-cap companies. By targeting this segment, the fund aims to capture the growth potential of emerging businesses that are on the cusp of transitioning into larger, more established enterprises. As of 20th January 2025, the fund had assets under management (AUM) worth of Rs. 8,891.20 cr., and its expense ratio was 0.59%. Furthermore, the fund had 3-yr CAGR of 22.47%, and its 5-yr CAGR was 32.73%.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is an open-ended equity scheme from Motilal Oswal Asset Management Company that invests primarily in mid-cap stocks. The investment strategy often aligns with Motilal Oswal’s QGLP (Quality, Growth, Longevity, and fair Price) philosophy, aiming to identify fundamentally sound mid-sized businesses trading at reasonable valuations. As of 20th January 2025, the fund had an AUM worth Rs. 26,421.09 cr., and its expense ratio was 0.65%. Furthermore, the fund had 3-yr CAGR of 29.93%, and its 5-yr CAGR was 30.78%.

Edelweiss Mid Cap Fund

Edelweiss Mid Cap Fund is an open-ended equity scheme from Edelweiss Mutual Fund, focusing on investing in mid-cap companies (typically the 101st to 250th largest by market capitalisation). Owing to the nature of mid-cap equities, the fund can experience higher volatility compared to large-cap funds. As of 20th January 2025, the fund had an AUM worth Rs. 8,666.49 cr., and its expense ratio was 0.38%. Furthermore, the fund had 3-yr CAGR of 23.45%, and its 5-yr CAGR was 29.35%.

Mahindra Manulife Mid Cap Fund

Mahindra Manulife Mid Cap Fund is an open-ended equity scheme managed by Mahindra Manulife Investment Management, a joint venture between India’s Mahindra Group and Canada’s Manulife Financial. Given its concentrated exposure to mid-cap stocks, it carries a moderate-to-high risk profile. As of 20th January 2025, the fund had an AUM worth Rs. 3,529.04 cr., and its expense ratio was 0.46%. Furthermore, the fund had 3-yr CAGR of 21.52%, and its 5-yr CAGR was 27.60%.

PGIM India Midcap Opp Fund

PGIM India Midcap Opportunities Fund is an open-ended equity scheme from PGIM India Mutual Fund—the Indian arm of PGIM, which is the global investment management business of US-based Prudential Financial, Inc. Due to its focus on mid-cap equities, it carries a relatively higher level of market risk compared to large-cap funds. As of 20th January 2025, the fund had an AUM worth Rs. 11,284.53 cr., and its expense ratio was 0.46%. Furthermore, the fund had 3-yr CAGR of 11.02%, and its 5-yr CAGR was 27.58%.

Nippon India Growth Fund

Nippon India Growth Fund is an open-ended equity mutual fund from Nippon India Mutual Fund, formerly known as Reliance Mutual Fund. The fund predominantly invests in mid-sized companies with the potential for faster earnings growth, though it may also allocate to large- and small-cap stocks for diversification. As of 20th January 2025, the fund had an AUM worth Rs. 35,277.81 cr., and its expense ratio was 0.78%. Furthermore, the fund had 3-yr CAGR of 22.54%, and its 5-yr CAGR was 27.42%.

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund is an open-ended equity scheme offered by HDFC Mutual Fund. By diversifying across various sectors within the mid-cap universe, the fund seeks long-term capital appreciation, though it can be more volatile than large-cap funds. As of 20th January 2025, the fund had an AUM worth Rs. 76,060.89 cr., and its expense ratio was 0.76%. Furthermore, the fund had 3-yr CAGR of 24.25%, and its 5-yr CAGR was 27.15%.

Invesco India Midcap Fund

Invesco India Midcap Fund is an open-ended equity scheme offered by Invesco Mutual Fund, focusing on medium-sized companies with robust growth potential. Backed by Invesco’s global investment expertise, the fund employs a blend of bottom-up stock selection and rigorous research to identify companies poised for expansion. As of 20th January 2025, the fund had an AUM worth Rs. 6,149.96 cr., and its expense ratio was 0.58%. Furthermore, the fund had 3-yr CAGR of 21.97%, and its 5-yr CAGR was 26.80%.

SBI Magnum Midcap Fund

SBI Magnum Midcap Fund is an open-ended equity scheme from SBI Mutual Fund. Launched in 2005, it predominantly invests in midcap companies—those typically ranked between 101 and 250 by market capitalisation—aiming to capture emerging growth opportunities as these firms develop into larger, more established businesses. As of 20th January 2025, the fund had an AUM worth Rs. 21,818.37 cr., and its expense ratio was 0.80%. Furthermore, the fund had 3-yr CAGR of 16.07%, and its 5-yr CAGR was 26.19%.

Kotak Emerging Equity Fund

Kotak Emerging Equity Fund is an open-ended equity scheme offered by Kotak Mahindra Asset Management Company. The fund predominantly invests in mid-cap stocks, aiming to capture the growth potential of emerging companies poised for expansion. As of 20th January 2025, the fund had an AUM worth Rs. 53,078.98 cr., and its expense ratio was 0.38%. Furthermore, the fund had 3-yr CAGR of 19.78%, and its 5-yr CAGR was 25.68%.

How to Invest in Mid Cap Mutual Funds?

You can easily invest in mid cap mutual funds by following these steps:

• To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
• The next step would be to research and identify the best mid cap funds to invest in which aligns with your investment thesis. You can easily select and learn more about the best mid cap funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
• Once you have selected the funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!

What is Mid Cap Mutual Funds?

Mid cap mutual funds primarily invest in Indian companies with a market capitalization between Rs. 5,000 cr and Rs. 20,000 cr, typically ranked 101 to 250 by SEBI. These funds allocate at least 65% of assets to mid-cap equities, offering a balance between large-cap stability and small-cap growth. With diverse stocks across sectors, they provide an exciting opportunity to invest in rising best mid cap mutual funds companies.

Features of Mid Cap Mutual Funds

Here are a few features of mid cap mutual funds:

• Growth Potential: Mid cap stocks, being in their growth stage, offer higher capital appreciation potential compared to mature large cap stocks, making mid cap funds attractive to investors.
• Risk Factor: While mid cap companies can potentially become industry giants in the future, they also carry a higher risk of going bankrupt if their performance falters. This risk level falls between that of large cap and small cap funds.
• Expense Ratio: Mid cap funds, like other mutual funds, entail an annual expense ratio imposed by the Asset Management Company (AMC). It’s crucial to choose a mid cap fund with a lower expense ratio to maximize mid cap mutual fund returns, but considering other factors like returns, exit load, and the fund manager’s performance is equally important when selecting the right mid cap fund.

How do Mid Cap Mutual Funds Work?

Every mutual fund, whether debt or equity, contains an underlying asset that generates returns. In the case of mid cap funds, this asset comprises stocks from mid-sized companies. Investors’ money is channeled by fund managers into these mid-sized companies, known for their long-term growth potential.

SEBI classifies these companies as mid cap based on their market capitalization, ranking them between 101-250. Mid cap companies bridge the gap between large cap and small cap companies, evolving from the latter and aspiring to attain the status of the former. They tend to exhibit faster growth during economic upturns but are more susceptible to slowdowns.

It’s crucial to understand that mid-sized companies include well-known names like Voltas, Sundaram Finance, and Godrej Industries Ltd, dispelling any notion of obscurity.

Factors to Consider When Investing in Mid Cap Mutual Funds

When seeking the best mid cap mutual funds for 2024, keep these vital factors in mind:

• The Manager’s Mastery: The expertise of the fund manager is a critical factor. Their market knowledge, investment strategy, and management style can significantly impact the fund’s performance. Thoroughly examine their track record and experience before committing your investment.
• Historical Track Record: Evaluate the fund’s historical performance, spanning different market cycles, to assess its consistency in delivering returns. Keep in mind that while past performance is valuable, it doesn’t guarantee future results.
• Expense Efficiency: Consider the expense ratio, which encompasses management fees and research costs. Comparing cost ratios across best mid cap mutual funds is essential to ensure you’re getting value for your investment.
• Risk Profile Alignment: Examine the fund’s risk profile to ensure it matches your risk tolerance. Some best mid cap mutual funds may carry higher risks, irrespective of their investment approach or sector focus.

Who Should Invest in Mid Cap Mutual Funds?

Here are a few types of investors who might be interested in mid cap mutual funds:

Risk-Ready Investors Seeking Amplified Returns

Mid-cap funds present a higher level of risk compared to large-cap counterparts, but in return, they offer a chance for returns that outpace the market. Therefore, this category is best suited for investors with an appetite for risk.

Investors Eyeing the Long Term

Significant businesses don’t sprout overnight. Given that mid-cap mutual funds focus on companies in the process of growth, investors need to cultivate patience. These firms may not be as financially robust as their larger counterparts, and during economic downturns, they might stumble and take time to regain their footing. To fully harness the benefits of these funds, a long-term commitment of 7 to 10 years is advisable.

Embracing Short-Term Fluctuations for Long-Term Rewards

Mid-cap funds can experience short to medium-term fluctuations, which may lead to abrupt portfolio value declines. Those considering this category should be prepared for such ups and downs and remain focused on their long-term objectives.

How to Choose the Best Mid Cap Mutual Funds?

Consider making a checklist before making your final decision on choosing your favored Mid Cap Mutual Fund for investment. Here are a few suggestions on how you can choose the best mid cap mutual funds for investment:

1. Fund Performance: Evaluate the historical performance of the mid-cap mutual funds you’re considering. Look at their returns over various time periods, comparing them to relevant benchmarks.
2. Fund Manager’s Track Record: A skilled fund manager is crucial to the success of a mutual fund. Assess the manager’s past performance and experience in managing mid-cap funds.
3. Expense Ratio: Lower expense ratios can significantly impact your returns in the long run. Choose funds with competitive expense ratios to minimize costs.
4. Asset Under Management (AUM): Consider the fund’s AUM. While a larger AUM may indicate the fund’s popularity, it could also impact the fund’s agility in taking advantage of mid-cap opportunities. 

How are Returns Calculated on Midcap Mutual Funds?

When evaluating the best midcap mutual funds in India, it’s crucial to understand how returns are calculated. That is why we’ve prepared a comprehensive guide on how you can calculate your returns on midcap mutual funds:

Annualized Returns

Annualized returns help investors gauge a fund’s performance over various time frames. To calculate annualized returns, consider the investment duration and the growth in NAV during that period. The formula for annualized returns is:

Annualized Returns (%) = [(Final NAV / Initial NAV)^(1/n) – 1] x 100

Here:

Final NAV: NAV at the end of the investment period.

Initial NAV: NAV at the beginning of the investment period.

‘n’ is the number of years the investment was held.

Compounded Annual Growth Rate (CAGR)

CAGR provides a smoothed-out representation of returns over time. It considers the compounding effect and is particularly useful for assessing long-term performance. The formula for CAGR is:

CAGR (%) = [(Ending NAV / Beginning NAV)^(1/n) – 1] x 100

Here:

Ending NAV: NAV at the end of the investment period.

Beginning NAV: NAV at the beginning of the investment period.

‘n’ is the number of years the investment was held.

Taxation on Mid Cap Mutual Funds as per the Union Budget 2024-25

The taxation on capital gains from your mutual fund investments is based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. It may be important to learn about these revisions when considering mid cap mutual funds. These changes include:

Equity Mutual Funds

• Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
• Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:

1. Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
2. Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
3. Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.

Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

Debt Mutual Funds

• Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
• Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds, including:

1. Tax Rate: A flat 12.5% tax rate applies to these gains.
2. No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.

• Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG. 

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 36 months	Taxed according to your income tax slab	Taxed according to your income tax slab
Long-Term Capital Gains (LTCG)	More than 36 months	10%	12.50%

Hybrid Mutual Funds

Short-Term Capital Gains (STCG)

The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:

• Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
• Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.

Long-Term Capital Gains (LTCG)

The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:

• Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
• Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.

Type of Hybrid  Fund	Short-Term Capital Gains (STCG)	Long-Term Capital Gains (LTCG)	Indexation Benefit
Equity-Oriented Hybrid Funds	20% for holdings less than 1 year	12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free	Not available
Debt-Oriented Hybrid Funds	Taxed as per income tax slab for holdings less than 3 years	12.5% for holdings over 3 years	Not available

Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Risks of Investing in Mid Cap Mutual Funds

Best mid cap mutual funds come with their share of risks that investors should be aware of:

• Liquidity Challenges: Mid-cap stocks often have lower liquidity than large-cap counterparts. This means buying and selling mid-cap equities can be less straightforward, potentially leading to wider bid-ask spreads and higher transaction costs. In extreme market situations, it can even be challenging to sell best mid cap mutual funds shares at fair market value, potentially resulting in losses.
• Market Volatility: Investing in mid-cap funds entails a higher sensitivity to market swings compared to large-cap funds. This can result in increased volatility, with mid-cap funds experiencing more significant losses during market downturns or times of economic uncertainty.
• Fee Considerations: Due to the additional research required to identify undervalued mid-cap companies, mid-cap funds often charge higher fees. While these expenses may be justified by potentially higher returns, it’s essential for investors to carefully evaluate the costs associated with a mid-cap fund before getting involved.

Benefits of Investing in Mid Cap Mutual Funds

Here are a few benefits of Mid Cap Fund Investment:

• High Growth Potential: Mid cap companies offer substantial growth potential, often outperforming large-cap counterparts in delivering significant returns.
• Diversified Portfolio: These funds explore companies with market capitalizations ranging from Rs. 5,000 cr to Rs. 20,000 cr (ranked 101-250 by SEBI), promoting portfolio diversification.
• Risk Mitigation: Investing in a variety of mid-cap stocks hedges against economic downturns, reducing risk compared to direct stock investments.
• Low Entry: Investment can begin with as little as Rs. 100, making it accessible for cautious investors to test the waters.
• Regulatory Transparency: SEBI closely oversees the best mid cap mutual funds, ensuring transparency through mandatory disclosures of NAVs, expense ratios, and month-end portfolios.
• Expert Management: Experienced fund managers handle mid-cap mutual funds, making them a reliable choice for those seeking exponential returns from well-selected mid-cap stocks.

To Wrap It Up…

In conclusion, navigating the world of good mid cap mutual funds can be a rewarding journey when armed with the right information. The ‘Best 10 Mid Cap Mutual Funds’ have been curated to provide you with a comprehensive overview of the top options available in the market. Remember, while historical performance and expert rankings provide valuable insights, it’s crucial to align your investments with your financial goals, risk tolerance, and investment horizon. Diversification, regular reviews, and staying informed about market trends are key to success!

Most Popular Mutual Funds:

As an investor to have a diversified mutual funds portfolio, you might also like to know more about these different types of funds for investing –

Large Cap Mutual Funds	Mutual Fund Bulk Deals	SBI Mutual Funds for SIP	SBI MF for Long Term SIP	Sectoral Mutual Funds	Short Term Mutual Funds	Tax Saving Mutual Funds	Mid Cap Mutual Funds
Small Cap Mutual Funds	Pharma Mutual Funds	80c Mutual Funds	1 Year Mutual Funds	International Mutual Funds	Tata Mutual Funds	Mutual Fund Portfolio	Best Mutual Funds
High Risk Mutual Funds	Micro Cap Mutual Funds	AMCs	MNC Mutual Funds	Equity Mutual Funds	Overnight Funds	ICICI Pru Mutual Funds	HDFC Mutual Funds
Best Investment Plans	Fixed Income Mutual Funds	Penny Stock Mutual Funds	Retirement Mutual Funds	Floater Rate Funds	Aggressive Hybrid Funds	Multi Asset Allocation Funds	Children’s Funds
Medium Duration Funds	Debt Funds	Corporate Bonds	Ultra Short Term Funds	Value Funds	Contra Funds	Focused Funds	Funds of Funds
Money Market Funds	Arbitrage Funds	Gold Mutual Funds	Books on Mutual Funds	Best Mutual Funds for SIP	SBI Mutual Funds	Low Risk Mutual Funds	Dividend Paying Funds
Long Term Mutual Funds	Banking Mutual Funds	Gilt Funds	Mutual Funds for 10 Years	Monthly Income Mutual Funds	Nifty 50 Index Funds	Lumpsum Investment Funds	Blue Chip Mutual Funds
Low Expense Ratio Funds

Frequently Asked Questions (FAQs) on Best Mid Cap Mutual Funds