Best Mid Cap Funds

Fund Name
AUM
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Ratings
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Motilal Oswal Midcap Fund Direct IDCW Reinvestment/Reinvestment Reinvestment

Motilal Oswal Midcap Fund Direct IDCW Reinvestment/Reinvestment Reinvestment

Equity Mid Cap Fund

₹8,986.69 Cr.

39.03%

4.5

Motilal Oswal Midcap Fund Direct IDCW Payout/Payout Payout

Motilal Oswal Midcap Fund Direct IDCW Payout/Payout Payout

Equity Mid Cap Fund

₹8,986.69 Cr.

39.03%

4.5

Motilal Oswal Midcap Fund Direct Plan Growth

Motilal Oswal Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹8,986.69 Cr.

39.03%

4.5

Quant Mid Cap Fund Growth Direct Plan

Quant Mid Cap Fund Growth Direct Plan

Equity Mid Cap Fund

₹5,873.25 Cr.

38.21%

4

Quant Mid Cap Fund IDCW Direct Plan Payout

Quant Mid Cap Fund IDCW Direct Plan Payout

Equity Mid Cap Fund

₹5,873.25 Cr.

37.97%

4

Quant Mid Cap Fund IDCW Direct Plan Reinvestment

Quant Mid Cap Fund IDCW Direct Plan Reinvestment

Equity Mid Cap Fund

₹5,873.25 Cr.

37.97%

4

HDFC Mid Cap Opportunities Fund Growth Direct Plan

HDFC Mid Cap Opportunities Fund Growth Direct Plan

Equity Mid Cap Fund

₹60,417.99 Cr.

31.07%

4

HDFC Mid Cap Opportunities Fund IDCW Direct Plan Payout

HDFC Mid Cap Opportunities Fund IDCW Direct Plan Payout

Equity Mid Cap Fund

₹60,417.99 Cr.

31.03%

4

HDFC Mid Cap Opportunities Fund IDCW Direct Plan Reinvestment

HDFC Mid Cap Opportunities Fund IDCW Direct Plan Reinvestment

Equity Mid Cap Fund

₹60,417.99 Cr.

31.03%

4

Mahindra Manulife Mid Cap Fund Direct Plan IDCW Reinvestment

Mahindra Manulife Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹2,201.78 Cr.

31.02%

2

Mahindra Manulife Mid Cap Fund Direct Plan IDCW Payout

Mahindra Manulife Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹2,201.78 Cr.

31.02%

2

Mahindra Manulife Mid Cap Fund Direct Plan Growth

Mahindra Manulife Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹2,201.78 Cr.

31%

2

Nippon India Growth Fund Direct Plan IDCW Payout

Nippon India Growth Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹24,796.00 Cr.

30.71%

4.5

Nippon India Growth Fund Direct Plan IDCW Reinvestment

Nippon India Growth Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹24,796.00 Cr.

30.71%

4.5

Nippon India Growth Fund Direct Plan Growth Bonus

Nippon India Growth Fund Direct Plan Growth Bonus

Equity Mid Cap Fund

₹24,796.00 Cr.

30.71%

4.5

Nippon India Growth Fund Direct Plan Growth

Nippon India Growth Fund Direct Plan Growth

Equity Mid Cap Fund

₹24,796.00 Cr.

30.71%

4.5

Edelweiss Mid Cap Fund Direct Plan IDCW Payout

Edelweiss Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹5,114.61 Cr.

28.52%

3

Edelweiss Mid Cap Fund Direct Plan IDCW Reinvestment

Edelweiss Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹5,114.61 Cr.

28.52%

3

Edelweiss Mid Cap Fund Direct Plan Growth

Edelweiss Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹5,114.61 Cr.

28.52%

3

Sundaram Mid Cap Fund Direct Plan IDCW Payout

Sundaram Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹10,269.46 Cr.

27.05%

1

Sundaram Mid Cap Fund Direct Plan IDCW Reinvestment

Sundaram Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹10,269.46 Cr.

27.05%

1

Sundaram Mid Cap Fund Direct Plan Growth

Sundaram Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹10,269.46 Cr.

27%

1

ICICI Prudential Midcap Fund Direct Plan IDCW Reinvestment

ICICI Prudential Midcap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹5,517.29 Cr.

26.78%

1.5

ICICI Prudential Midcap Fund Direct Plan IDCW Payout

ICICI Prudential Midcap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹5,517.29 Cr.

26.78%

1.5

ICICI Prudential Midcap Fund Direct Plan Growth

ICICI Prudential Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹5,517.29 Cr.

26.77%

1.5

Invesco India Midcap Fund Direct Plan Growth

Invesco India Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹4,280.22 Cr.

26.72%

2

Invesco India Midcap Fund Direct Plan IDCW (Payout / Payout)

Invesco India Midcap Fund Direct Plan IDCW (Payout / Payout)

Equity Mid Cap Fund

₹4,280.22 Cr.

26.69%

2

Invesco India Midcap Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Invesco India Midcap Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Equity Mid Cap Fund

₹4,280.22 Cr.

26.69%

2

TATA Mid Cap Growth Fund Direct Plan Growth

TATA Mid Cap Growth Fund Direct Plan Growth

Equity Mid Cap Fund

₹3,348.40 Cr.

26.41%

1

TATA Mid Cap Growth Fund Direct Plan IDCW Payout

TATA Mid Cap Growth Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹3,348.40 Cr.

26.41%

1

TATA Mid Cap Growth Fund Direct Plan IDCW Reinvestment

TATA Mid Cap Growth Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹3,348.40 Cr.

26.41%

1

Mirae Asset Midcap Fund Direct Growth

Mirae Asset Midcap Fund Direct Growth

Equity Mid Cap Fund

₹14,251.70 Cr.

26.17%

2.5

Mirae Asset Midcap Fund Direct IDCW Payout

Mirae Asset Midcap Fund Direct IDCW Payout

Equity Mid Cap Fund

₹14,251.70 Cr.

26.15%

2.5

Mirae Asset Midcap Fund Direct IDCW Reinvestment

Mirae Asset Midcap Fund Direct IDCW Reinvestment

Equity Mid Cap Fund

₹14,251.70 Cr.

26.15%

2.5

SBI Magnum Midcap Fund Direct Plan IDCW Payout

SBI Magnum Midcap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹16,856.01 Cr.

26.09%

5

SBI Magnum Midcap Fund Direct Plan IDCW Reinvestment

SBI Magnum Midcap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹16,856.01 Cr.

26.09%

5

SBI Magnum Midcap Fund Direct Plan Growth

SBI Magnum Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹16,856.01 Cr.

26.08%

5

ITI Mid Cap Fund Direct Plan Growth

ITI Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹748.32 Cr.

25.93%

0

Union Midcap Fund Direct Plan Growth

Union Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹1,064.70 Cr.

25.67%

0

Union Midcap Fund Direct Plan IDCW Reinvestment

Union Midcap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹1,064.70 Cr.

25.67%

0

Union Midcap Fund Direct Plan IDCW Payout

Union Midcap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹1,064.70 Cr.

25.67%

0

Aditya Birla Sun Life Midcap Fund Growth Direct Plan

Aditya Birla Sun Life Midcap Fund Growth Direct Plan

Equity Mid Cap Fund

₹4,912.51 Cr.

25.65%

1.5

Aditya Birla Sun Life Midcap Fund Direct IDCW Payout

Aditya Birla Sun Life Midcap Fund Direct IDCW Payout

Equity Mid Cap Fund

₹4,912.51 Cr.

25.65%

1.5

Aditya Birla Sun Life Midcap Fund Direct IDCW Reinvestment

Aditya Birla Sun Life Midcap Fund Direct IDCW Reinvestment

Equity Mid Cap Fund

₹4,912.51 Cr.

25.65%

1.5

Baroda BNP Paribas Mid Cap Fund Direct Plan Growth

Baroda BNP Paribas Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹1,790.25 Cr.

25.37%

0

Baroda BNP Paribas Mid Cap Fund Direct Plan IDCW Payout

Baroda BNP Paribas Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹1,790.25 Cr.

25.37%

0

Baroda BNP Paribas Mid Cap Fund Direct Plan IDCW Reinvestment

Baroda BNP Paribas Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹1,790.25 Cr.

25.37%

0

Kotak Emerging Equity Scheme Growth Direct

Kotak Emerging Equity Scheme Growth Direct

Equity Mid Cap Fund

₹39,684.91 Cr.

24.84%

3.5

Kotak Emerging Equity Scheme Payout of IDCW Direct Payout

Kotak Emerging Equity Scheme Payout of IDCW Direct Payout

Equity Mid Cap Fund

₹39,684.91 Cr.

24.84%

3.5

Kotak Emerging Equity Scheme Reinvestment of IDCW Direct Reinvestment

Kotak Emerging Equity Scheme Reinvestment of IDCW Direct Reinvestment

Equity Mid Cap Fund

₹39,684.91 Cr.

24.84%

3.5

HSBC Midcap Fund Direct IDCW Payout

HSBC Midcap Fund Direct IDCW Payout

Equity Mid Cap Fund

₹9,740.79 Cr.

24.23%

1.5

HSBC Midcap Fund Direct IDCW Reinvestment

HSBC Midcap Fund Direct IDCW Reinvestment

Equity Mid Cap Fund

₹9,740.79 Cr.

24.23%

1.5

HSBC Midcap Fund Direct Growth

HSBC Midcap Fund Direct Growth

Equity Mid Cap Fund

₹9,740.79 Cr.

24.21%

1.5

ITI Mid Cap Fund Direct Plan IDCW Payout

ITI Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹748.32 Cr.

24.15%

0

ITI Mid Cap Fund Direct Plan IDCW Reinvestment

ITI Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹748.32 Cr.

24.15%

0

Taurus Mid Cap Fund Direct Plan Payout of IDCW Payout

Taurus Mid Cap Fund Direct Plan Payout of IDCW Payout

Equity Mid Cap Fund

₹115.61 Cr.

23.73%

1

Taurus Mid Cap Fund Direct Plan Reinvestment of IDCW Reinvestment

Taurus Mid Cap Fund Direct Plan Reinvestment of IDCW Reinvestment

Equity Mid Cap Fund

₹115.61 Cr.

23.73%

1

Taurus Mid Cap Fund Direct Plan Growth

Taurus Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹115.61 Cr.

23.73%

1

Franklin India Prima Fund Direct Growth

Franklin India Prima Fund Direct Growth

Equity Mid Cap Fund

₹10,108.06 Cr.

23.49%

1.5

Franklin India Prima Fund Direct IDCW Payout

Franklin India Prima Fund Direct IDCW Payout

Equity Mid Cap Fund

₹10,108.06 Cr.

23.49%

1.5

Franklin India Prima Fund Direct IDCW Reinvestment

Franklin India Prima Fund Direct IDCW Reinvestment

Equity Mid Cap Fund

₹10,108.06 Cr.

23.49%

1.5

PGIM India Midcap Opportunities Fund Direct Plan Growth

PGIM India Midcap Opportunities Fund Direct Plan Growth

Equity Mid Cap Fund

₹9,923.95 Cr.

22.48%

5

PGIM India Midcap Opportunities Fund Direct Plan Dividend Option Payout Payout

PGIM India Midcap Opportunities Fund Direct Plan Dividend Option Payout Payout

Equity Mid Cap Fund

₹9,923.95 Cr.

22.48%

5

PGIM India Midcap Opportunities Fund Direct Plan Dividend Option Reinvestment Reinvestment

PGIM India Midcap Opportunities Fund Direct Plan Dividend Option Reinvestment Reinvestment

Equity Mid Cap Fund

₹9,923.95 Cr.

22.48%

5

UTI Mid Cap Fund Direct Plan IDCW Payout

UTI Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹9,943.94 Cr.

21.77%

2

UTI Mid Cap Fund Direct Plan IDCW Reinvestment

UTI Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹9,943.94 Cr.

21.77%

2

UTI Mid Cap Fund Growth Direct

UTI Mid Cap Fund Growth Direct

Equity Mid Cap Fund

₹9,943.94 Cr.

21.77%

2

Axis Midcap Fund Direct Plan IDCW Payout

Axis Midcap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹25,536.68 Cr.

21.07%

1.5

Axis Midcap Fund Direct Plan IDCW Reinvestment

Axis Midcap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹25,536.68 Cr.

21.07%

1.5

Axis Midcap Fund Direct Plan Growth

Axis Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹25,536.68 Cr.

21.06%

1.5

LIC MF Mid Cap Fund Direct Plan Growth

LIC MF Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹242.21 Cr.

20.73%

0.5

LIC MF Mid Cap Fund Direct Plan IDCW Payout

LIC MF Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹242.21 Cr.

20.7%

0.5

LIC MF Mid Cap Fund Direct Plan IDCW Reinvestment

LIC MF Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹242.21 Cr.

20.7%

0.5

DSP Midcap Fund Direct Plan Growth

DSP Midcap Fund Direct Plan Growth

Equity Mid Cap Fund

₹15,968.56 Cr.

18.02%

1

DSP Midcap Fund Direct Plan IDCW Payout

DSP Midcap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹15,968.56 Cr.

18.02%

1

DSP Midcap Fund Direct Plan IDCW Reinvestment

DSP Midcap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹15,968.56 Cr.

18.02%

1

Whiteoak Capital Mid Cap Fund Direct Plan Growth

Whiteoak Capital Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹1,658.04 Cr.

0%

0

Whiteoak Capital Mid Cap Fund Direct Plan IDCW Payout

Whiteoak Capital Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹1,658.04 Cr.

0%

0

Whiteoak Capital Mid Cap Fund Direct Plan IDCW Reinvestment

Whiteoak Capital Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹1,658.04 Cr.

0%

0

Canara Robeco Mid Cap Fund Direct Plan Growth

Canara Robeco Mid Cap Fund Direct Plan Growth

Equity Mid Cap Fund

₹2,012.78 Cr.

0%

0

JM Midcap Fund Direct Growth

JM Midcap Fund Direct Growth

Equity Mid Cap Fund

₹825.47 Cr.

0%

0

Bandhan Midcap Fund Growth Direct Plan

Bandhan Midcap Fund Growth Direct Plan

Equity Mid Cap Fund

₹1,101.93 Cr.

0%

0

Canara Robeco Mid Cap Fund Direct Plan IDCW Reinvestment

Canara Robeco Mid Cap Fund Direct Plan IDCW Reinvestment

Equity Mid Cap Fund

₹2,012.78 Cr.

0%

0

JM Midcap Fund Direct IDCW Payout

JM Midcap Fund Direct IDCW Payout

Equity Mid Cap Fund

₹825.47 Cr.

0%

0

Canara Robeco Mid Cap Fund Direct Plan IDCW Payout

Canara Robeco Mid Cap Fund Direct Plan IDCW Payout

Equity Mid Cap Fund

₹2,012.78 Cr.

0%

0

Bandhan Midcap Fund IDCW Direct Plan Payout

Bandhan Midcap Fund IDCW Direct Plan Payout

Equity Mid Cap Fund

₹1,101.93 Cr.

0%

0

JM Midcap Fund Direct IDCW Reinvestment

JM Midcap Fund Direct IDCW Reinvestment

Equity Mid Cap Fund

₹825.47 Cr.

0%

0

Bandhan Midcap Fund IDCW Direct Plan Reinvestment

Bandhan Midcap Fund IDCW Direct Plan Reinvestment

Equity Mid Cap Fund

₹1,101.93 Cr.

0%

0

About Mid Cap Mutual Funds

Mid cap mutual funds are a type of equity fund that mainly invest in mid cap stocks. As per SEBI’s definition, stocks that rank 101 to 250 based on market capitalisation are categorised as mid cap stocks. Mid cap companies have a market capitalisation between ₹5,000 crore and ₹20,000 crore.

These stocks tend to have greater growth potential compared to large cap stocks and have relatively lower volatility and risk than small cap stocks. 

Mid cap funds are ideally suitable for investors with longer horizons. Therefore, these can be considered for goals like children’s higher education, repayment of home loans, etc.

How Do Mid-Cap Funds Work?

Equity-based mutual funds that invest mainly in the equity of mid-cap or medium-capitalisation companies are called mid-cap mutual funds. According to the classification of these funds by SEBI (the Securities and Exchange Board of India), stocks that have a ranking from 101 to 250 (aligned with market capitalisation) are within the category of mid-cap stocks. Typically, in mid-cap mutual funds, you may discover that funds primarily invest in the equity of companies with a market capitalisation in the range of ₹5,000 to 20,000 crore. 

Mid-cap funds work on the premise that stocks in these funds are prone to potentially have a greater growth rate than large-cap stocks and have a comparatively lower degree of risk and volatility than small-caps. In this way, these funds work for investors who have long-term perspectives on investment and may wish to invest for reasons like, say, a child’s higher education or the repayment of certain loans. 

Features of Mid Cap Mutual Funds

  • Growth potential: Since mid cap stocks are in their growth stage and have good prospects compared to mature large cap stocks, mid cap funds enjoy greater chances of capital appreciation. This can prove to be favourable for investors.
  • Risk: While there is a possibility of mid cap companies becoming industry giants (large cap) in the future, there is also a risk of such companies going bankrupt if they don’t do well. Hence, they are riskier than large caps but less than small cap funds.
  • Expense ratio: Like other mutual funds, mid cap funds also have an expense ratio. These are charges that the Asset Management Company (AMC) imposes on investors to manage their mid cap funds. Such expenses are charged annually and are deducted from your returns. Picking a mid cap fund with a lower expense ratio can maximise your returns. However, you should also consider other factors such as returns, exit load, and fund manager’s performance before finalising a mid cap fund to invest in.

Advantages of Mid Cap Funds

  1. Attractive returns: Mid cap investments give relatively higher returns compared to large cap variants because such companies have higher growth potential. Often they may also have a good business record while also showing signs of becoming a potential industry giant.
  2. Comparatively less sensitive to market volatility: Similar to other mutual funds, a mid cap mutual fund is also sensitive to market volatilities. However, the rate of its underperformance at such times might be limited compared to small-cap funds. This is because mid cap funds are comparatively more mature than small businesses.
  3. A mix of small and large cap funds’ opportunities: Some of the best mid cap mutual funds can prove to be a common ground between large cap funds and small cap funds. This is because they can grow faster than large cap funds, and are less volatile than small cap funds.
  4. Diversification: While giving investors a middle ground in terms of risk and returns, it refrains them from going too far in extreme directions.

Risks Involved in Mid Cap Funds

  1. Volatility around market peaks: Despite having focused business models, some funds may also run a risk of becoming bankrupt in tough times. For example, a mid cap business may have most of its revenue flowing in from one major client. If that client terminates their orders and there is no way to compensate for it, the business will undergo losses. Besides, during times of market volatility, mid cap funds are hit harder than large cap variants. These funds are also more likely to experience price shocks when market valuations are high.
  2. Liquidity issues: Usually, if mid cap funds are invested for 7-10 years, they can offer better returns than large cap funds. However, investments in mid cap funds can be tied up during market crashes when it is difficult to find buyers. This is because investors tend to stick to stable, large cap funds during adverse times.
  3. Finite range: There is a limited number of schemes that focus on mid cap funds. So when the volume of investments grows, the fund managers are compelled to pick stocks from either the small cap or the large cap category.

Factors To Consider Before Investing in Mid-Cap Funds

While considering investment in mid-cap funds, it is worth thinking about some factors about the funds themselves. Here is a list of things you should ponder before you invest: 

  • You must remember that mid-cap funds are in the phase of potential growth. Given this, they have a greater opportunity to flourish relative to large-cap stocks. If you wish to achieve potential capital appreciation, you may want to think of mid-cap funds. 
  • The true acid test before you invest in any mid-cap fund is performance. You may delve into the historical performance of the fund itself as that is a reflection of the companies it invests in, or you may check the performance of the individual companies whose stocks make up the fund. Either way, performance is a key factor in opting for a mutual fund. 
  • You may want to contemplate your own investment requirements and financial goals before you invest in mid-cap funds. These equity funds may produce substantial returns, but to achieve this, investors may have to remain invested for the long run. In this regard, you may want to think about your age at investment. 
  • Since the potential of earning may be relatively high with mid-cap mutual fund investment, you may want to reflect on the expense ratios of the fund you are considering. In case expense ratios are high, they may potentially eat into your gains in the future. 
  • The way mid-cap funds work is through a proficient fund manager allocating your money to the equity of prospective mid-cap companies. You may want to evaluate the wealth allocation to companies in terms of how they are graded for possible growth in the future. 

Who Should Invest in Mid Cap Mutual Funds?

  1. High-risk appetite: Investors with a tolerance to high risk can consider investing in these funds as they are susceptible to market volatility and economic downturns. The funds are also riskier than large cap variants.
  2. Long-term investment: Since these funds are relatively risky, they may take longer to recover than large cap funds in case of adverse market conditions. As for returns, mid cap funds have the potential to give higher returns than large cap variants. Considering these factors, mid cap funds are much-suited for investors with a long-term horizon.
  3. Has market knowledge: These funds are more suitable for investors who have been in the market for some time as they are in a better position to analyse the right fund based on risk, returns, and other parameters.

Taxability

Taxes reduce your overall income. Hence, it is important to understand how these instruments are taxed. The profits made by the investor after selling the mid cap fund are taxed based on how long the investment was held. Here are more details on how they are taxed:

Short-Term Capital Gains (STCG)

These are capital gains that you earn on selling mid-cap fund investments within 1 year of buying them. Such short-term capital gains are taxed at 15%.

Long-Term Capital Gains (LTCG)

Gains from mid cap investments held for more than a year are classified as Long Term Capital Gains. Profits of up to ₹1 lakh earned within a financial year are tax-free. When the gains exceed the said limit, investors are liable to pay a 10% tax without indexation provided.

Dividend taxation – The dividend income is added to the investor’s taxable income and taxed as per their slab. There is also a 10% TDS charged by the mutual fund house on dividend amount exceeding ₹5,000 in a financial year.

How To Invest in Mid-Cap Funds?

Investing in the mid-cap Mutual Funds is hassle-free when done through your Angel One account. You just have to follow these simple steps:

Step 1: Log in to your Angel One account.

Note: In case you do not have an account with Angel One, you can open a demat account with us in under a few minutes by submitting the necessary documents.

Step 2: Choose a mid-cap fund that suits your needs and risk profile. You can learn more about each mid-cap fund on the Angel One app. Things to consider at this stage are:

  1. Search for the fund you want to invest in.
  2. Analyse the fund’s past performance, tax incidence, and the sectors and companies it invests in. You can also calculate the potential returns using the calculator.
  3. Evaluate the fund’s level of risk, its ratings and expense ratio.

Step 3: Once you finalise the mid-cap fund(s) you want to invest in, open your Angel One account, go to the Mutual Funds section, and look for it.

  1. Decide whether you want to invest via SIP or make a one-time investment
  2. Decide your monthly SIP date. Now, enter the amount you want to invest and choose the payment mode.
  3. After placing the order, you can create an AutoPay to make hassle-free future instalments in case of SIP investments.

Top 5 Mid Cap Mutual Funds

Name AUM (₹ in crore) Minimum Investment (in ₹) CAGR 3Y (%) CAGR 5Y

(%)

Axis Midcap Fund 19,741.37 500 17.27 14.92
Kotak Emerging Equity fund 23,962.94 100 30.60 14.89
Nippon India Growth Fund 13,409.61 100 28.93 14.28
HDFC Mid cap Opportunities Fund 35,730.69 100 22.49 11.85
DSP Midcap Fund 13,213.27 500 18.94 9.21

The above-mentioned top funds are for informational purposes only and are not recommendations. The funds are based on 5-yr CAGR, which is subject to change frequently. Check out real-time data on Angel One.

Axis Midcap Fund

The Axis Midcap Fund has an impressive AUM of ₹19,741.37 crore. It has an exit load of 1.00% and requires a minimum lump sum of ₹500. It is benchmarked against S&P BSE 150 Midcap-TRI. The Axis Midcap Fund has a PE ratio of 51.20 and a Sharpe ratio of -0.24.

Here is how the fund is diversified: Investment banking & brokerage (12.12%), auto parts (9.72%), specialised finance (9.62%), retail – speciality (7.50%), and IT services & consulting (7.18%). The rest of the 24 sectors form 53.86% of the fund diversification.

Kotak Emerging Equity Fund

The fund has an exit load of 1.00% and a minimum lump sum requirement of ₹100. It aims to track Nifty Midcap 150-TRI. What is worth considering is that the fund has a total AUM of Rs. 23,962.94 crore.

The fund has a PE ratio of 42.14. The holdings are distributed in the following sectors: auto parts (10.21%), miscellaneous (7.68%), diversified chemicals (7.10%), home appliances and electronics (6.29%), and private banks (6.17%). The rest of the 29 sectors make up 62.55%.

Nippon India Growth Fund

The Nippon India Growth Fund is diversified in the following sectors: pharmaceuticals (7.95%), specialised finance (7.64%), private banks (7.35%), IT services & consulting (7.35%), and packaged foods and meats (5.58%). The rest of the 34 sectors make up 64.13%.

The Nippon India Growth Fund has an AUM of ₹13,409.61 crore, a PE ratio of 37.59 and a Sharpe ratio of 0.27. With an exit load of 1.00%, the fund requires a minimum lump sum of ₹100. Its benchmark is Nifty mid cap 150 – TRI.

HDFC Midcap Opportunities Fund

With a total AUM of ₹35,730.69 crore, the funds’ exit load is 1.00%, and the minimum lump sum requirement is ₹100. Its benchmark is Nifty Midcap 150-TRI, the PE ratio is 30.62, and its Sharpe ratio is 0.56.

Here’s how the fund is diversified: auto parts (12.87%), specialised (9.46%), industrial machinery (7.37%), diversified chemicals (7.04%), and IT services & consulting (5.89%). The rest of the 29 sectors comprise 57.36% share.

DSP Midcap Fund

The DSP Midcap Fund is diversified in the following sectors: pharmaceutical (8.91%), private banks (7.66%), specialised finance (6.22%), diversified chemicals (6.17%), and fertilisers & agrochemicals (6.16%). The rest of the fund is diversified into 23 other sectors that make up 64.88%.

It has an exit load of 1.00%, a minimum lump sum of ₹500 and a benchmark of Nifty midcap 150-TRI. Furthermore, the DSP Midcap fund has a PE ratio of 36.16 and a Sharpe ratio of -0.32. The fund holds a total AUM of ₹13,213.27 crore.

Mutual Funds Calculator

Mid Cap Funds FAQs

Are mid cap funds high-risk?

Despite being sensitive to market fluctuations just like any other equity instrument, mid cap funds are less risky when compared to a small cap fund and riskier than a large cap fund. Additionally, these funds are popular for giving out risk-adjusted returns.

Should I invest in mid cap mutual funds?

Mid cap mutual funds can have a significant growth possibility and may offer higher returns than large cap funds. However, as the risk-reward relationship goes, these funds are also riskier. If these terms are in line with your financial profile considering your income, age, investment horizon, risk profile, and goals, you can analyse mid cap funds to choose the most-suited one.

What are the expected returns of mid cap funds?

On the basis of 5 year CAGR, Axis Midcap Fund being number one out of all the mid cap funds has given a return of 14.92%. However, the returns are subject to change as per the market fluctuations.

What are the risks involved in investing in mid cap funds?

Mid cap funds are subject to liquidity risks and market volatility. Despite thriving in the favourable market and economic conditions, these businesses may be at risk of going bankrupt in tough times.

Are mid cap funds taxable?

Yes, mid cap funds are taxable. Taxes on short-term gains are 15% if the holding period is less than 1 year. Investors holding the units for more than a year, are not taxed on LTCG of up to 1 lakh. However, they will be taxed at 10% on the gains that surpass this amount.

How much money should I invest in mid cap funds?

The amount of money an investor should invest in mid cap funds depends on diverse factors like income, age, investment horizon, and goals. Besides these factors, investors must also do adequate research before investing in any fund.