Mid Cap Funds
Mid-cap mutual funds invest in established companies with growth potential ranked between 101st to 250th in market capitalization, offering a balance between risk and growth. Ideal for moderate-risk investors seeking long-term growth in a diversified portfolio.
Know more about Mid Cap Funds
Large Cap
25% - 27%
Flexi Cap
28% - 30%
Mid Cap
35% - 37%
Large & Mid Cap
29% - 31%
Small Cap
47% - 49%
Multi-Cap
32% - 34%
Focused Funds
26% - 28%
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AUM
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1Y return
Exp. Ratio
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1Y return
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Quant Mid Cap Fund Growth Option Direct Plan▲ 16.49%AUM ₹1872 Cr •
Expense 0.63%
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PGIM India Midcap Opportunities Fund Direct Growth▲ 12.8%AUM ₹8072 Cr •
Expense 0.43%
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Motilal Oswal Midcap 30 Direct Growth▲ 28.22%AUM ₹4033 Cr •
Expense 0.76%
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Kotak Emerging Equity Scheme Direct Growth▲ 17.52%AUM ₹25972 Cr •
Expense 0.41%
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Invesco India Mid Cap Fund Direct Plan Growth Option▲ 19.12%AUM ₹3526 Cr •
Expense 0.72%
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Nippon India Growth Fund - Direct Plan - Growth▲ 20.53%AUM ₹14143 Cr •
Expense 0.85%
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HDFC Mid-Cap Opportunities Fund -Direct Plan - Growth Option▲ 26.7%AUM ₹36912 Cr •
Expense 0.94%
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SBI Magnum Midcap Fund Direct Growth▲ 19.44%AUM ₹9370 Cr •
Expense 1.08%
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Edelweiss Mid Cap Fund Direct Plan Growth Option▲ 20.07%AUM ₹2787 Cr •
Expense 0.52%
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Axis Midcap Fund Direct Plan Growth▲ 14.65%AUM ₹19539 Cr •
Expense 0.54%
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Insights on Mid Cap Funds
Performance vs. Large Cap and Small Cap Funds
- In the last 1 year, mid cap funds have outperformed large cap funds by 4.60% and underperformed small cap funds by 2.20%
- In the last 3 years, mid cap funds have outperformed large cap funds by 8.60% and underperformed small cap funds by 10.00%
- In the last 5 years, mid cap funds have outperformed large cap funds by 1.60% and underperformed small cap funds by 2.00%
Top Mid Cap Funds by Net Inflow
- Kotak Emerging Equity Scheme Direct Growth has seen net inflow of ₹3431.7 Cr in the last 6 months in the mid cap funds category
- HDFC Mid-Cap Opportunities Fund -Direct Plan - Growth Option has seen net inflow of ₹1791.2 Cr in the last 6 months in the mid cap funds category
- SBI Magnum Midcap Fund Direct Growth has seen net inflow of ₹1044.5 Cr in the last 6 months in the mid cap funds category
Bottom Mid Cap Funds by Net Outflow
- DSP Midcap Fund Direct Plan Growth has seen net outflow of ₹832.3 Cr in the last 6 months in the mid cap funds category
- Sundaram Mid Cap - Direct Plan - Growth Option has seen net outflow of ₹255.2 Cr in the last 6 months in the mid cap funds category
- Franklin India Prima Fund Direct Growth has seen net outflow of ₹221.7 Cr in the last 6 months in the mid cap funds category
Top Holdings of Mid Cap Funds
Holdings | # of Funds | Total Investment Value |
|---|---|---|
 Federal Bank Ltd | 25 out of 29 mid cap funds | ₹4275.91Cr |
 Persistent Systems Ltd | 22 out of 29 mid cap funds | ₹4209.48Cr |
 Voltas Ltd | 20 out of 29 mid cap funds | ₹1487.53Cr |
- Federal Bank Ltd is held by 25 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹4275.91Cr
- Persistent Systems Ltd is held by 22 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹4209.48Cr
- Voltas Ltd is held by 20 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹1487.53Cr
Top New Holdings Added by Mid Cap Funds
Holdings | # of Funds | Total Investment Value |
|---|---|---|
 Sundram Fasteners Ltd | 7 out of 29 mid cap funds | ₹301.30Cr |
 K P R Mill Ltd | 6 out of 29 mid cap funds | ₹231.06Cr |
 Schaeffler India Ltd | 5 out of 29 mid cap funds | ₹424.07Cr |
- In the last 6 months, Sundram Fasteners Ltd stock has been added by 7 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹301.30Cr
- In the last 6 months, K P R Mill Ltd stock has been added by 6 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹231.06Cr
- In the last 6 months, Schaeffler India Ltd stock has been added by 5 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹424.07Cr
Top Holdings where Mid Cap Funds increased investment
Holdings | # of Funds | Total Investment Value |
|---|---|---|
 Astral Ltd | 16 out of 29 mid cap funds | ₹141.69Cr |
Persistent Systems Ltd | 12 out of 29 mid cap funds | ₹736.87Cr |
 Indian Hotels Co Ltd | 12 out of 29 mid cap funds | ₹414.36Cr |
- In the last 6 Months, Astral Ltd stock has been added by 16 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹141.69Cr
- In the last 6 Months, Persistent Systems Ltd stock has been added by 12 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹736.87Cr
- In the last 6 Months, Indian Hotels Co Ltd stock has been added by 12 out of 29 mutual funds in the mid cap funds category, with a total investment value of ₹414.36Cr
What are Mid-cap funds?
Mutual funds can be classified based on the market capitalisation of the underlying stocks they invest in. Mid-cap mutual funds invest in stocks of companies listed from rank 101-250 as per the market capitalization, which have the potential to offer better returns than large-cap stocks, with lesser risk than small-cap stocks.
Advantages of investing in best mid cap mutual funds
Higher Growth potential
Compared to large-cap funds, the returns in mid-cap funds have been higher over the long-term as the underlying stocks of large-cap funds have become stable in their growth cycle. In contrast, the top mid-cap funds are gleefully trotting ahead on their journey to become large-cap stocks.
Less riskier than Small-cap funds
As compared to small cap funds, mid cap funds are less risky and volatile. Though mid cap companies are not as safe and stable as large companies, they are financially stronger than small caps and therefore also have a better ability to navigate tough market conditions.
High Returns
These funds essentially need an investment horizon of 5-7 years to maximise your returns. Since these companies cater to new or niche markets, they provide a good opportunity. The stock prices will usually fluctuate more in the first few years and settle later. However, over a longer term horizon you can potentially make higher returns.
Things to consider before investing in best mid cap mutual funds in 2023
First to consider is, the performance of the mid cap funds—present as well as historical, through the bullish and bearish market cycles. It takes a lot of research to pick the best mid cap mutual funds, and at Indmoney, you will get expert assistance for the same. Apart from this, you might consider the following:
Investment horizon
This is recommended for investors who can stay invested for a longer time horizon of upto five to seven years. Reason being, equity stocks are volatile, and these funds are more volatile than the markets. Hence, to experience good returns through the best mid cap mutual funds, patience is the keyword.
Performance
You must evaluate the performance of the mid-cap fund through the bullish and bearish market cycles. Since the mid-cap companies are relatively new or not that extensively researched, it takes a keen eye to spot the ones with potential. You may begin by checking the rating of the fund and the consistency of its performance.
Risk
Among the various types of mutual funds, equity mutual funds are considered to be riskier. And mid cap funds are riskier than the large cap funds because of the stage in the growth cycle. So an investor must be cautious before investing in Mid Caps.
Cost of investment
This includes expense ratio and exit load. Investment companies charge a fee called expense ratio which includes management fees (fees of fund manager) and operational costs. The lower the expense ratio and exit load, the higher the profit. The average expense ratio for a large cap fund is around 0.5 to 1.5%
Taxation
Capital gains earned are taxed depending on how long the amount was kept invested for. Capital gains up to one year are short term capital gains (STCG) taxed at 15% and the gains for more than one year are long term capital gains (LTCG) taxed at 10% on the amount exceeding one lakh.
How to Start Investing Online in the Best Mid-Cap Funds
STEP 2
Create your profile
STEP 3
Select any best mid-cap fund from our catalogue
STEP 4
Choose between Starting a SIP or One time lumpsum
STEP 5
Complete the payment process
Outlook
To conclude, there is an underlying risk in all mutual funds. Mid cap companies can either be well established or just starting to grow, but they have the potential to even outgrow the market. This perception-based investor confidence has led to the massive growth in net AUM of mid-cap funds from Rs 88,734 crores in August 2020 to Rs. 1,46,626 crores in August 2021, as per Association of Mutual Funds of India.
However, they are more prone to failures too. The trick is to select the best mid cap stocks to buy for the long term, with expert advice from Indmoney, that facilitates you to select, and start early as a first time investor.
Limitations of Mid Cap Funds
- Limited Diversification: Mid cap funds invest in a limited number of stocks, limiting diversification, and increasing the concentartion risk. This is because their investable universe is mainly restricted to the mid cap universe by mandate.
- Market Volatility: Mid caps are generally more volatile than large caps, making them prone to market downturns.
- Management risk: Some mid cap companies may have inexperienced management teams which can make them vulnerable to market risks.
- Limited Liquidity: Mid caps lack market depth, which can make it difficult to buy or sell shares in large quantities.
- Higher Expense Ratios: Mid-cap funds may have higher expense ratios than passive funds of same category, which can eat into profits over time.
Frequently Asked Questions
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