Midcap mutual funds often strike the perfect balance between growth and risk, offering investors a shot at high returns without the extreme volatility of small-cap stocks. Over the years, these funds have consistently beaten inflation and helped wealth grow meaningfully for long-term investors.
We analysed four of the top-performing midcap funds (direct plans) — Motilal Oswal Midcap Fund, HDFC Mid Cap Fund, Nippon India Growth Mid Cap Fund and Kotak Midcap Fund — to see how they’ve performed over 1, 3, 5 and 10 years, what their portfolios look like, and what kind of investors they suit the best.
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1. Motilal Oswal Midcap Fund
Launch date: 24 February 2014
AUM: Rs 33,053 crore
Expense ratio (Direct): 0.68%
Risk level: Very High
Exit load: 1% before 1 year
Returns:
1 year: 5.92%
3 years: 33.94% CAGR
5 years: 37.62% CAGR
10 years: 18.83% CAGR
Return since launch: 24.19% CAGR
Top Holdings: Coforge, Persistent Systems, Trent, Dixon Technologies, Kalyan Jewellers
Aggressive and focused, this fund holds a concentrated portfolio and has rewarded high-conviction investors. Ideal for those who can handle short-term volatility.
2. HDFC Mid Cap Fund
Launch date: 1 January 2013
Assets Under Management (AUM): Over Rs 84,000 crore
Expense ratio (Direct): 0.75%
Risk level: Very High
Exit load: 1% if exited before 1 year
Returns:
1 year: 7.56%
3 years: 31.88% CAGR
5 years: 33.62% CAGR
10 years: 18.84% CAGR
Return since launch: 21.61% CAGR
Top Holdings: Max Financial, Coforge, Federal Bank, AU Small Finance Bank, Hindustan Petroleum, Indian Bank
This fund has been a steady performer with a proven track record, suitable for long-term investors who prefer consistency over aggression.
Also read: Best micro-cap mutual funds for long-term growth in 2025
3. Nippon India Growth Mid Cap Fund
Launch date: 1 January 2013
AUM: Over Rs 39,066 crore
Expense ratio (Direct): 0.71%
Risk level: Very High
Exit load: 1% if redeemed before 1 month
Returns:
1 year: 5.47%
3 years: 30.33% CAGR
5 years: 33.73% CAGR
10 years: 18.48% CAGR
Return since launch: 19.21% CAGR
Top Holdings: BSE, Cholamandalam Investment, Fortis Healthcare, Persistent Systems, AU Small Finance Bank, The Federal Bank
One of the oldest midcap funds in India, the fund has seen multiple market cycles and continues to deliver robust returns over time. Suited for disciplined investors with a long horizon.
4. Kotak Midcap Fund
Launch date: 1 January 2013
AUM: Over Rs 57,102 crore
Expense ratio (Direct): 0.38%
Risk level: Very High
Exit load: 1% before 1 year
Returns:
1 year: 5.63%
3 years: 27.27% CAGR
5 years: 32.06% CAGR
10 years: 19.26% CAGR
Return since launch: 21.32% CAGR
Top Holdings: Fortis Healthcare, Mphasis, Solar, GE T&D India, Swiggy, Dixon Technologies
A well-diversified midcap fund, the scheme has given relatively stable returns. Good choice for investors looking for steady compounding with moderate portfolio concentration.
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What should you look for beyond returns in a fund?
Returns aren’t everything when it comes to choosing the right mutual fund. Here are other essential factors to consider:
Expense Ratio: A lower ratio means higher take-home returns.
Exit Load: Important if you may redeem your investment early.
Riskometer: All these funds are “Very High” risk—be sure your risk appetite matches.
Fund Age & Size: Older funds with large AUMs often indicate stability and proven management.
Top Holdings: Check if you are comfortable with the sectors and stocks the fund invests in.
Consistency Across Timeframes: One-year returns can be misleading — check 3, 5, and 10 years.
Summing up…
Midcap mutual funds have been one of the best wealth creators for long-term investors. If you’re planning to stay invested for at least 5–7 years and can ride out interim volatility, one of these four funds could be a great addition to your portfolio. But do your homework — look beyond past returns, understand the strategy, and ensure it aligns with your goals and temperament.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.