Best Mid Cap Mutual Funds: Investors are currently exploring various investment opportunities to grow their savings. Some are entering the stock market, while others are investing in cryptocurrencies. However, mutual funds have become a popular option for many, as they provide a consolidated method of wealth growth without the complexity of managing individual stocks.
The mutual fund industry saw significant growth in 2024, with equity mutual funds seeing inflows of over Rs 3.5 lakh crore and assets under management (AUM) growing by almost 40%. Sectoral mutual funds also saw significant growth, with small-cap funds reaching Rs 3.26 lakh crore, mid-cap funds reaching Rs 3.89 lakh crore, and large-cap funds reaching Rs 3.62 lakh crore. Index funds and ETFs have also grown by 28%.
In the last two to three years, smallcap and midcap funds have performed the best among specific thematic funds. Experts suggest that investors generally rely on past performance while selecting funds through online platforms. As per the regulations set by the Securities and Exchange Board of India (SEBI), large-cap mutual funds must allocate at least 80% of their investments to large-cap stocks. In contrast, this rate is 65% for mid-cap mutual funds. Large and mid-cap mutual funds must allocate at least 35% of their investments to large and mid-cap stocks, but the fund manager can change this allocation based on market conditions.
Best Mid Cap Mutual Funds
A mid-cap fund is an equity fund that invests in stocks of medium-sized companies, which have a market capitalization between Rs 5,000 crore and Rs 20,000 crore. Investors must know these three things before starting to invest. Let’s talk about 5 Best Mid Cap Mutual Funds.
Motilal Oswal Midcap Fund Direct – Growth
Motilal Oswal Midcap Fund Direct – Growth is a popular equity mutual fund, which was launched on 24 February 2014. Investors can start investing in this fund with a minimum SIP of ₹500 or a one-time investment of ₹500. The fund currently has total assets under management of ₹22,897.60 crore, and its NAV as on 03 January 2025 is ₹129.1344.
The fund has delivered an absolute return of 60.68% in the last one year, and has achieved a CAGR of 36.06% and 35.09% in the last 3 and 5 years, respectively. The expense ratio of this fund is 0.54%, which is part of the management expenses. The fund’s top holdings include Polycab, Coforge, Kalyan Jewellers, Zomato and Persistent Systems, reflecting the fund’s diversified investment strategy. Motilal Oswal Midcap Fund Direct One of the best Mid Cap Mutual Funds.
| Fund Details | Information |
|---|---|
| Min. SIP Amount | ₹ 500.00 |
| Min. Lumpsum Amount | ₹ 500.00 |
| AUM | ₹ 22,897.60 Cr |
| Expense Ratio | 0.54 % |
| Lock-in Period | No Lock-in Period |
| Inception Date | 24 Feb 2014 |
| Fund Age | 10 Yrs |
| Benchmark | Nifty Midcap 150 TRI |
| Scheme Type | Open Ended |
| Stamp Duty | 0.005% (from July 1st 2020) |
| Exit Load | 1.00% – If Redeemed On Or Before 1 Year From The Date Of Allotment |
Quant Mid Cap Fund Direct – Growth
Quant Mid Cap Fund Direct – Growth is an equity mutual fund scheme launched on 01 January 2013. Investors can start investing in this fund with a minimum SIP of ₹1,000 or a one-time investment of ₹5,000. The fund currently has total assets under management (AUM) of ₹8,941.21 crore, and its net asset value (NAV) as on 03 January 2025 is ₹251.7558. The fund has given a return of 21.48% in the last one year.
The fund has achieved a compound annual growth rate (CAGR) of 25.78% in the last 3 years and 34.70% in the last 5 years. The expense ratio of this fund is 0.59%. The fund’s top holdings include Reliance Industries 9.43%, Arvind Pharma 8.43%, Indian Container Corporation 7.58%, IRB Infrastructure Developers 7.37%, and Tata Communications 5.97%. Quant Mid Cap Fund Direct One of the 2nd best Mid Cap Mutual Funds.
| Fund Details | Information |
|---|---|
| Min. SIP Amount | ₹ 1,000.00 |
| Min. Lumpsum Amount | ₹ 5,000.00 |
| AUM | ₹ 8,941.21 Cr |
| Expense Ratio | 0.59 % |
| Lock-in Period | No Lock-in Period |
| Inception Date | 01 Jan 2013 |
| Fund Age | 12 Yrs |
| Benchmark | Nifty Midcap 150 TRI |
| Scheme Type | Open Ended |
| Stamp Duty | 0.005% (from July 1st 2020) |
| Exit Load | 0.50% For Redemption Within 90 Days |
Edelweiss Mid Cap Fund Direct – Growth
Edelweiss Mid Cap Fund Direct – Growth is an equity mutual fund scheme launched on 01 January 2013. Investors can start investing in this fund with a minimum SIP of ₹100 or a one-time investment of ₹100. The fund currently has total assets under management (AUM) of ₹8,280.35 crore, and its net asset value (NAV) as on 03 January 2025 is ₹118.2420. The fund has delivered an absolute return of 42.94% in the last one year.
The fund has achieved a compound annual growth rate (CAGR) of 27.39% in the last 3 years and 32.14% in the last 5 years. The fund has an expense ratio of 0.39%, which is considered as part of the management expenses. Top holdings of Edelweiss Mid Cap Fund include Persistent Systems 4.08%, Dixon Technologies 4.02%, Lupin 2.76%, PB FinTech 2.75%, and Federal Bank 2.54%.
| Fund Details | Information |
|---|---|
| Min. SIP Amount | ₹ 100.00 |
| Min. Lumpsum Amount | ₹ 100.00 |
| AUM | ₹ 8,280.35 Cr |
| Expense Ratio | 0.39 % |
| Lock-in Period | No Lock-in Period |
| Inception Date | 01 Jan 2013 |
| Fund Age | 12 Yrs |
| Benchmark | Nifty Midcap 150 TRI |
| Scheme Type | Open Ended |
| Stamp Duty | 0.005% (from July 1st 2020) |
| Exit Load | 1.00% – If redeemed/switched out on or before 90 days from the date of allotment; Nil – If redeemed/switched out on or after 90 days from the date of allotment. |
PGIM India Midcap Opportunities Fund Direct – Growth
PGIM India Midcap Opportunities Fund Direct – Growth is an equity mutual fund scheme launched on 02 December 2013. Investors can start investing in this fund with a minimum SIP of ₹1,000 or a one-time investment of ₹5,000. The fund currently has total assets under management (AUM) of ₹11,092.70 crore and its net asset value (NAV) as on 03 January 2025 is ₹74.4500. In the last one year, the fund has given an absolute return of 24.75%.
The fund has given a compound annual growth rate (CAGR) of 14.66% in the last 3 years and 30.69% in the last 5 years. The expense ratio of this fund is 0.47%. The fund’s top holdings include Dixon Technologies 3.77%, Persistent Systems 3.25%, Max Healthcare Institute 3.11%, UNO Minda 2.83%, and Info Edge 2.48%.
| Fund Details | Information |
|---|---|
| Min. SIP Amount | ₹ 1,000.00 |
| Min. Lumpsum Amount | ₹ 5,000.00 |
| AUM | ₹ 11,092.70 Cr |
| Expense Ratio | 0.47 % |
| Lock-in Period | No Lock-in Period |
| Inception Date | 02 Dec 2013 |
| Fund Age | 11 Yrs |
| Benchmark | Nifty Midcap 150 TRI |
| Scheme Type | Open Ended |
| Stamp Duty | 0.005% (from July 1st 2020) |
| Exit Load | 0.50% – For exits within 90 days from the date of allotment of units. |
Nippon India Growth Fund Direct – Growth
Nippon India Growth Fund Direct – Growth is an equity mutual fund scheme launched on 01 January 2013. Investors can start investing in this fund with a minimum SIP of ₹100 or a one-time investment of ₹100. The fund currently has total assets under management (AUM) of ₹34,583.60 crore and its net asset value (NAV) as on 03 January 2025 is ₹4,515.0820. In the last one year, the fund has given an absolute return of 29.62%.
The fund has given a compound annual growth rate (CAGR) of 26.96% in the last 3 years and 30.13% in the last 5 years. The fund’s expense ratio is 0.79%. The fund’s top holdings include Power Finance Corporation 2.86%, Persistent Systems 2.86%, Cholamandalam Financial Holdings 2.60%, BSE 2.56%, and Fortis Healthcare 2.53%.
| Fund Details | Information |
|---|---|
| Min. SIP Amount | ₹ 100.00 |
| Min. Lumpsum Amount | ₹ 100.00 |
| AUM | ₹ 34,583.60 Cr |
| Expense Ratio | 0.79 % |
| Lock-in Period | No Lock-in Period |
| Inception Date | 01 Jan 2013 |
| Fund Age | 12 Yrs |
| Benchmark | Nifty Midcap 150 TRI |
| Scheme Type | Open Ended |
| Stamp Duty | 0.005% (from July 1st 2020) |
| Exit Load | 1% of redeemed or switched out on or before completion of 1 month from the date of allotment of units |
Conclusion
According to market experts, investors should be cautious about mid-cap stocks in 2025, as many stocks are trading above their intrinsic value, which could indicate overvaluation in the market. As a result, such stocks could be at a higher risk if the market declines.
However, on the other hand, some experts believe that investing in a well-selected large and mid-cap fund can be helpful in balancing risk and potential reward. Such funds can potentially provide higher growth potential, especially when they are well-managed and their business operations are able to continue to grow.
Overall, it is important to make a prudent and informed decision, taking into account market conditions as well as personal investment objectives and risk tolerance.