The Motilal Oswal Midcap Fund (direct plan) has returned 34.76% compounded annually over five years. The HDFC Mid Cap Opportunities Fund and Nippon India Growth Midcap Fund have also reported more than 30% CAGR during the same period.
Five-year track record
| Fund Name | 5-year return regular (%) | 5-year return direct (%) |
| Aditya Birla Sun Life Mid Cap | 24.97 | 26.07 |
| Axis Midcap Fund | 22.31 | 23.76 |
| Baroda BNP Paribas Mid Cap | 24.45 | 26.33 |
| DSP Midcap Fund | 19.78 | 20.93 |
| Edelweiss Mid Cap Fund | 29.43 | 31.31 |
| Franklin India Mid Cap Fund | 24.95 | 25.97 |
| HDFC Mid Cap Fund | 29.77 | 30.65 |
| HSBC Mid Cap Fund | 24.2 | 25.57 |
| ICICI Prudential Midcap Fund | 27.25 | 28.38 |
| Invesco India Mid Cap Fund | 28.41 | 30.16 |
| Kotak Midcap Fund | 28.08 | 29.59 |
| LIC MF Mid Cap Fund | 22.26 | 23.38 |
| Mahindra Manulife Mid Cap | 27.08 | 29.1 |
| Mirae Asset Midcap Fund | 26.61 | 28.18 |
| Motilal Oswal Midcap Fund | 33.25 | 34.76 |
| Nippon India Growth Mid Cap | 29.56 | 30.58 |
| PGIM India Midcap Fund | 25.29 | 27.21 |
(Source: AMFI)
In July 2025, the Nifty Midcap 100 – TRI fell 3.83% and the Nifty Midcap 150 – TRI declined 2.57%. Despite this, midcap funds drew ₹5,182 crore in inflows, 38% higher than June.
Analysts point out that midcap companies have shown stronger earnings momentum compared to large-caps, but risks remain.
“Mid-cap companies are currently showing earnings growth of 14–16%, compared to 6–8% for large-caps,” said Chakri Lokapriya, CIO-Equities at LGT Wealth India.
“That provides some support, but the broader market remains more exposed to volatility. Global trade issues, such as US tariff negotiations, could influence sentiment in the coming months,” he said.
Navy Vijay Ramavat, MD at Indira Group, noted that fund outcomes have diverged in recent months.
“Some schemes have managed to hold up even during corrections, while others have lagged. This makes selection and consistency across cycles important. Investors should consider SIPs rather than trying to time entries,” he said.
He added that current midcap valuations are “on the higher side, partly justified by growth potential, but with less room for earnings disappointments.”
According to Ranjit Jha, MD & CEO of Rurash Financials, investors should manage allocation carefully.
“Midcap exposure should ideally remain at 20–30% of an equity portfolio. Fresh investments are better made through staggered contributions — via SIPs or STPs over three to six months — instead of lump-sum allocations,” he said.
“For investors whose midcap weight has risen sharply due to recent gains, gradual rebalancing is advisable,” he added.