Mid cap mutual funds invest in equities of mid-sized companies based on market capitalization and suited for long term investments. They have higher growth potential than large-cap companies and are less risky than small-cap companies.
Learn how Scripbox Recommends funds| Fund Name | 3Y Returns | Expense Ratio |
|---|---|---|
 | 36.9% | 1.74 |
 | 39.3% | 1.87 |
 | 37.0% | 2.38 |
 | 32.9% | 1.57 |
 | 34.2% | 1.73 |
 | 37.8% | 1.9 |
Note : *NA implies that Fund is relatively new. Not enough data available
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Mid-cap mutual funds invest in mid-cap companies which rank between 101 to 200 on market capitalization. These funds are well-suited for investors seekings a long-term investment and not being affected by short-term fluctuations. While selecting the best mid-cap mutual funds always ensure that the fund meets your expectations and needs. Other than this primary factor you must also consider the historical performance of the fund, AUM, a trend in NAV, return, risk, tax, future prospects of the mid-cap companies, and exit load. These factors will help you in making a better decision in a long-term investment.
| Fund Name | 3 Year Returns | Expense Ratio |
| HDFC Mid Cap Opportunities Fund Growth | 24.5% | 1.81% |
| UTI Mid Cap Fund Growth | 24.8% | 1.78% |
| PGIM India Midcap Opportunities Fund Growth | 36.3% | 1.93% |
| Nippon India Growth Fund Growth | 24.6% | 1.76% |
| Axis Midcap Fund Growth | 20.1% | 1.76% |
| Sundaram Mid Cap Fund Growth | 18.3% | 1.84% |
| DSP Midcap Fund Growth | 15.9% | 1.78% |
| Tata Mid Cap Growth Fund | 21.5% | 2.29% |
| Invesco Mid Cap Fund Growth | 22.4% | 2.06% |
All mid cap mutual funds invest at least 65% of their total assets in companies that rank between 101 and 250 based on market capitalization (midcap stocks). The best mid cap mutual funds strike a perfect balance between risk and return. They have higher growth potential than large cap companies and are less risky than small cap companies. Mid cap funds invest in midcap stocks that have the potential to grow into large cap companies. However, the tables may turn too.
Midcap companies cater to emerging markets of the economy and hence have a platform to grow. These companies are often underfollowed, under-researched, and therefore undervalued. Thus investment in midcap funds allows investors to earn potentially higher returns in the long run. Midcap companies can be highly sensitive to market fluctuations. Hence for optimal returns, investors are suggested to invest in the best midcap funds for longer horizons. Investing in equity schemes requires investors to stay invested for longer durations to overcome the effect of market fluctuations.
Best midcap funds are highly liquid, and investors can redeem their investment when necessary. Mid cap funds best suit investors that are willing to invest for the long term and are not affected by short term fluctuations. Investors seeking high returns but ready to absorb more risk can invest in the top midcap funds. The best mid cap mutual funds to invest in 2023 are Axis Midcap Fund and Nippon India Growth Fund.
Mid Cap Mutual Funds are taxed like equity schemes. The period before completion of one year from the date of investment is considered short term. If the investment is redeemed during the short term, the gains are subject to the STCG tax of 15% (plus 4% cess). Any period after the completion of one year from the date of investment is considered a long term. Any gains above INR 1,00,000 are subject to LTCG tax of 10% (plus 4% cess).
Effective from 1st April 2020, dividends are taxed in the hands of investors at the income tax slab rate. And dividends above INR 5,000 are subject to TDS of 10%. Equity mutual funds are subject to securities transaction tax of 0.001% if investors sell the units. Investors should take advantage of investing for longer horizons and earn higher returns and enjoy tax benefits.
Mid cap companies have a high potential to grow and become large cap companies. They have a business model in place. They give higher returns than large cap companies in the bullish phase but are vulnerable to a falling market. However, they are less risky than small cap companies.
Small cap companies have a higher growth potential. They are just entering the market and hence very young and seek to expand aggressively. They are the riskiest companies as they are highly vulnerable to market cycles. However, in the bullish phase, they perform exceptionally well in the market.
One cannot say which is better from an investment perspective. All industries follow a business cycle, and no industry or company is always in the growth phase. However, investing in large caps is considered safest, followed by mid caps and then small caps. It depends on the investor’s needs and profiles to know which is the best fit for him/her. A risk-averse investor should reconsider investing in small and mid caps.
Mid cap companies are companies that rank between 101 and 250 based on market capitalization. Mid cap companies have a high potential to grow and become large cap companies. They have a business model in place. Their growth is higher than large cap companies in the bullish phase. They are less risky than small cap companies.
These companies are highly responsive to opportunity and change and vulnerable to business cycles. Best mid cap mutual funds have an asset allocation that invests at least 65% of their total assets in mid cap companies.
The best mid cap mutual funds to invest in 2023 are Nippon India Growth Fund and Axis Midcap Fund.
An investment is considered good if it meets the investor’s needs and requirements. Mid cap mutual funds best suit investors that are willing to invest for the long term and are not affected by short term fluctuations. Mid cap funds are one of the equity mutual fund types. Investors seeking high returns but willing to absorb more risk should invest in the top midcap funds.
Mid cap mutual funds invest in equities of companies that rank between 101 and 250 based on market capitalization. Their high growth potential generates higher returns than large cap mutual funds in the bullish phase. During a bear market phase, even the top funds might lose substantial value as investors prefer safer options. They are less risky than small cap funds. The best mid cap mutual funds are suited for long term investments.