Personal Finance
Best Mutual Fund in India: For investors who are planning to get exposure to equities in their portfolio without encountering any massive volatility can consider a mutual fund investment. There are multiple mutual funds based on the category of stocks they invest in, based on their market capitalisation, sector of operation, themes, etc.
What is a Mid-Cap Mutual Fund?
Mid-cap mutual fund schemes focus on investment in mid-sized companies. These firms are typically ranked between 101 and 250 in terms of market capitalisation in India. Unlike large-cap firms, mid-cap stocks are in growth mode and can offer higher returns. While they have high growth potential, mid-cap stocks are relatively less volatile compared to small-cap stocks. Midcap mutual fund schemes invest pooled funds primarily in mid-cap stocks.
Top 5 Mid Cap Mutual Funds With More Than 20% Returns In 5 Yrs
Here is the list of top five mid cap mutual fund schemes that delivered more than 20% returns in five years, as per AMFI data on April 29.
| Scheme Name | Benchmark | Latest NAV (Direct) | 5-Year Return % (Direct) |
5-Year Return % (Benchmark) |
| Motilal Oswal Midcap Fund | Nifty Midcap 150 TRI | 105.8367 | 23.97% | 20.19% |
| Nippon India Growth Mid Cap Fund | Nifty Midcap 150 TRI | 4,789.29 | 23.32% | 20.19% |
| HDFC Mid Cap Fund | Nifty Midcap 150 TRI | 219.606 | 22.25% | 20.19% |
| Invesco India Mid Cap Fund | BSE Midcap 150 TRI | 218.91 | 22.82% | 19.32% |
| Edelweiss Mid Cap Fund | Nifty Midcap 150 TRI | 122.52 | 22.75% | 20.19% |
Benefit of a Mid-Cap Mutual Fund Investment
Mid-cap mutual funds offer growth opportunities to investors with stability and diversification. These funds mainly hold mid-cap companies, which sit between large and small firms by size. Adding mid-cap mutual funds to the portfolio would help in spreading money across companies. The price swings of mid-cap mutual fund stocks is also usually milder than small caps, and they deliver more upside than large caps. These schemes also provide access to emerging leaders who could become future market giants.
Risks of Adding Mid-Cap Mutual Funds
Mid-cap mutual funds offer limited growth potential, and the price swings in these schemes could feel sharper compared to large-cap mutual fund schemes.
Price movement is usually more uneven in mid-cap mutual funds than in large-cap funds. Sharp market corrections can cause larger falls in mid-cap portfolios. Recovery after such phases often needs more time. Large-cap funds may bounce back faster because investors view them as safer during stress.
Another key concern in mid-cap mutual funds is business stability. Many of these companies have shorter track records and less diversified revenue. Their financial position can be weaker than large-cap peers. During difficult periods, this can pressure cash flows and balance sheets, adding to risk for investors.
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