With investor optimism on the rise, midcap and smallcap mutual funds have witnessed a notable surge in inflows during June 2025.
According to recent AMFI data, midcap funds attracted ₹3,754 crore in June, marking a 34% increase from May’s inflow of ₹2,808 crore. Similarly, smallcap funds saw inflows of ₹4,024 crore, up 25% from ₹3,214 crore in the previous month. This momentum reflects growing investor confidence in India’s long-term growth prospects, despite prevailing global uncertainties. In this article, we highlight some of the best-performing mid and smallcap mutual funds in July 2025.
| Name | AUM (₹ in crore) | CAGR 3Y (%) | CAGR 5Y (%) |
| Motilal Oswal Midcap Fund | 33,053.13 | 34.05 | 37.10 |
| Invesco India Midcap Fund | 7,405.92 | 32.96 | 31.99 |
| HDFC Mid Cap Fund | 84,061.43 | 32.25 | 33.09 |
| Edelweiss Mid Cap Fund | 10,027.89 | 31.60 | 34.51 |
| Nippon India Growth Mid Cap Fund | 39,065.55 | 30.31 | 33.23 |
| Mahindra Manulife Mid Cap Fund | 3,775.59 | 30.29 | 31.88 |
| Sundaram Mid Cap Fund | 12,344.49 | 29.47 | 29.53 |
| Franklin India Prima Fund | 12,285.44 | 28.63 | 27.96 |
| HSBC Midcap Fund | 12,146.02 | 28.08 | 27.74 |
| Kotak Midcap Fund | 57,101.96 | 27.58 | 31.65 |
Note: The best midcap funds listed here are as of July 10, 2025. The funds are selected from positive 5yr CAGR and sorted based on the 3yr CAGR.
| Name | AUM (₹ in crore) | CAGR 3Y (%) | CAGR 5Y (%) |
| Bandhan Small Cap Fund | 12,981.57 | 35.70 | 37.91 |
| ITI Small Cap Fund | 2,504.41 | 34.06 | 30.46 |
| Invesco India Smallcap Fund | 7,424.64 | 32.30 | 35.19 |
| Quant Small Cap Fund | 29,629.09 | 31.90 | 45.85 |
| Nippon India Small Cap Fund | 66,601.80 | 30.06 | 38.35 |
| Franklin India Smaller Cos Fund | 13,544.68 | 29.96 | 35.26 |
| HDFC Small Cap Fund | 35,780.59 | 29.17 | 34.97 |
| Tata Small Cap Fund | 11,163.84 | 28.26 | 35.70 |
| Edelweiss Small Cap Fund | 4,580.06 | 28.07 | 35.86 |
| Bank of India Small Cap Fund | 1,818.50 | 27.63 | 36.05 |
Note: The best midcap funds listed here are as of July 10, 2025. The funds are sorted based on the 3yr CAGR.
Also Read: Best Mutual Funds for Lumpsum Investment for July 2025 Based on 3Y and 5Y CAGR!
With several funds delivering impressive 3-year and 5-year CAGR returns, investors have a range of options to consider. However, as with any equity investment, it's essential to align fund choices with your risk appetite and long-term financial goals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Jul 10, 2025, 2:41 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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