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.
Motilal Oswal Midcap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 19.3% , a 3 Years return of 30.9% and a 5 Years return of 39.2%
. The fund has an expense ratio of 0.7% and an AUM of ₹
27780 crores as of 2025-05-12.
It was Launched on 2014-02-24. The minimum lump sum investment is ₹5000.
2 . HDFC Mid-Cap Opportunities Fund Direct (G)
HDFC Mid-Cap Opportunities Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 11.0% , a 3 Years return of 27.5% and a 5 Years return of 34.2%
. The fund has an expense ratio of 0.8% and an AUM of ₹
74910 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
3 . Nippon India Growth Fund Direct (G)
Nippon India Growth Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 11.6% , a 3 Years return of 26.2% and a 5 Years return of 34.5%
. The fund has an expense ratio of 0.8% and an AUM of ₹
34690 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
4 . Sundaram Mid Cap Fund Direct (G)
Sundaram Mid Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 11.7% , a 3 Years return of 25.3% and a 5 Years return of 30.7%
. The fund has an expense ratio of 0.9% and an AUM of ₹
11690 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
5 . Mahindra Manulife Mid Cap Fund Direct (G)
Mahindra Manulife Mid Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 8.3% , a 3 Years return of 25.6% and a 5 Years return of 32.2%
. The fund has an expense ratio of 0.5% and an AUM of ₹
3553 crores as of 2025-05-12.
It was Launched on 2018-01-30. The minimum lump sum investment is ₹5000.
6 . Edelweiss Mid Cap Fund Direct (G)
Edelweiss Mid Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 18.8% , a 3 Years return of 27.1% and a 5 Years return of 34.8%
. The fund has an expense ratio of 0.4% and an AUM of ₹
9242 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
7 . Kotak Emerging Equity Fund Direct (G)
Kotak Emerging Equity Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 12.4% , a 3 Years return of 21.9% and a 5 Years return of 32.2%
. The fund has an expense ratio of 0.5% and an AUM of ₹
49646 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
8 . Motilal Oswal Nifty Midcap 150 Index Fund Direct (G)
Motilal Oswal Nifty Midcap 150 Index Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 7.8% , a 3 Years return of 23.5% and a 5 Years return of 32.2%
. The fund has an expense ratio of 0.3% and an AUM of ₹
2126 crores as of 2025-05-12.
It was Launched on 2019-09-06. The minimum lump sum investment is ₹5000.
9 . Invesco India Mid Cap Fund Direct (G)
Invesco India Mid Cap Fund Direct (G)
is a Equity fund
that has delivered a 1 Year return of 18.5% , a 3 Years return of 26.9% and a 5 Years return of 31.6%
. The fund has an expense ratio of 0.7% and an AUM of ₹
6047 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
Who Should Invest in Mid Cap Funds?
Mid cap funds are a category of equity mutual funds that invest in midcap stocks. Mid cap stocks are of companies ranking between 101th and 250th by market capitalization. As these are pure equity funds, investors who are willing to take the risk associated with them can invest in midcap funds.
Mid cap companies can generate significant returns in the long term. These companies are also highly volatile. Additionally, mid cap companies have good growth potential.
One can invest in top performing mid cap funds to achieve their long term financial goals. Also, investors who are not affected by short term volatility can invest in mid cap mutual funds. They are good for portfolio diversification as the companies have good growth potential. Therefore, investors looking to accumulate wealth in the long term can invest in midcap funds. However, these funds have a significant amount of risk associated with them.
Features of Midcap Fund
Growth Potential: Mid cap mutual funds invest in mid-sized companies that have a high potential to grow. They are often undervalued and hence are excellent picks to earn higher returns.
Returns: Mid cap mutual funds give higher returns than large cap mutual funds in a bullish phase. They are highly responsive to opportunity and change.
Taxation: Mid cap mutual funds are taxed like any other equity fund. In the short term (within one year), the gains are subject to STCG tax of 15%. In the long term (after one year), the gains exceeding INR 1 lakh are subject to LTCG tax of 10%. Dividends are taxable as per the investor’s income tax slab rate. Also, dividends above INR 5,000 are subject to TDS.
Risk: They are very vulnerable to business cycles and hence have a higher risk than large cap mutual funds. However, they have their business model in place and are less risky than small cap funds.
Diversification: Mid cap companies operate in emerging and niche markets. It allows investors to diversify their portfolio.
Liquidity: Best mid cap mutual funds are highly liquid, and investors can sell their units whenever they want.
Investment horizon: Mid cap mutual funds are highly volatile in the short term. These companies take time to grow and establish. Thus, Mid cap mutual funds tend to give higher returns in the long term (10 years plus).
How to Invest in Mid Cap Funds with Scripbox
Scripbox allows investors to invest in the top mid cap mutual funds. Their robotic technology and thorough research picks the best mid cap mutual funds for you.
You can invest in Scripbox’s recommended best mid cap mutual funds in India by following the below-mentioned steps:
Login to Scripbox
Click on ‘Invest’
Begin by selecting ‘A plan to invest in’ or ‘I want to choose my own funds.’
Choose the investment mode: monthly SIP, one-time, or STP.
Enter the investment amount.
Receive recommended funds based on the invested sum.
Customize fund selections and distribution.
Select the payment mode.
Complete the transaction to set up your investment.
Frequently Asked Questions
Which is better mid cap or small cap?
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. Thus, a risk-averse investor should reconsider investing in small and mid caps.
Are mid caps a good investment?
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. Overall, the best mid cap mutual funds are suited for long term investments.
When should I buy mid-cap funds?
Mid cap funds are a double-edged weapon. They can grow in size and generate gains or they can go downside. This is why there is no good time to invest in mid cap funds. Markets are volatile and the best way to invest is regularly and for the long term. Mid cap funds are sensitive to market conditions, and they might have the potential to earn returns but at the same time can have downside risk. Investors who worry for small short term market movements should consider investing in diversified investments. However, investors who can stay invested in mid cap funds for the long term despite market fluctuations can earn substantial returns.
How does Scripbox rate funds?
Proprietary system to rate mutual funds
We use a proprietary system to rate mutual funds and based on the outcome of the rating, we classify funds into 4 categories namely "Recommended", "Top Ranked", "Neutral" and "Not Recommended".
Scripbox algorithm recommends 2-4 funds for investment for an investment asset class such as large cap, diversified, liquid etc. When you invest for an objective, the algorithm suggests the appropriate asset class and funds.
Top Ranked
These funds are the top performers within a category of mutual funds considering a combination of criteria. The best amongst these funds are also labelled as Scripbox Recommended.
Neutral
Scripbox recommends other funds, which are more suitable for your investment objectives, within this asset and sub asset class.
Not Recommended
Scripbox algorithm classifies funds as "not recommended" when they perform poorly on a combination of criteria. These funds are usually the poorest performers within a category.
Things we consider to provide ratings for a mutual fund.
Outperformance Consistency
We look at the consistency of the outperformance that the fund has displayed. A fund with high consistency is preferred
Rolling Returns (1 Year Holding Period)
We consider average 1 year return that the fund has delivered over an extended period of time
Rolling Returns (3 Year Holding Period)
We consider average 3 year return that the fund has delivered over an extended period of time
Volatility of Outperformance
We consider how volatile the out-performance over the benchmark has been. A lower volatility is preferred
Downside Protection Measure
We look at how resilient the fund is to market down trends. A fund that has shown a higher resilience is preferred
Upside Participation Measure
We consider how well the fund has been able to participate in upmoves in the market. A fund that participates well is preferred
Fund Size
We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.
How to invest in best mutual funds?
Investing through Scripbox is made easy and paperless. All you need to do is follow the below steps and start investing.
0 1
Choose a plan
Choose a plan to invest to start investing
0 2
Create an Account
Create an account with Scripbox through a paperless process, to invest in best mutual funds.
0 3
Invest online & transfer
Invest via netbanking, UPI or through an SIP (eNACH mandate).
0 4
Track your investments
Track, invest more and withdraw your investments through the Scripbox dashboard
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