Midcap mutual funds continue to demonstrate their strength as a core component of long-term investment portfolios, combining resilience, growth potential, and consistency. According to WhiteOak Mutual Fund’s SIP Analysis Report, midcap funds have delivered over 15% returns in 80% of 10-year investment periods, highlighting their ability to generate wealth sustainably over time.
As of November 2025, midcap schemes remain a preferred choice among investors who seek a balance between the relative safety of large caps and the aggressive growth of small caps. Positioned between the two segments, midcap funds invest in companies ranked 101st to 250th by market capitalization—firms that blend scalability with established business fundamentals. These companies have historically shown the ability to navigate economic cycles effectively, offering robust long-term returns, particularly over a 5–10 year horizon.
The WhiteOak Mutual Fund report revealed that midcap funds have consistently outperformed both largecap and smallcap peers when viewed through the lens of systematic investment plans (SIPs). Analysing 10-year monthly rolling returns, the study found that midcaps provided returns exceeding 15% in 80% of observed periods. In comparison, smallcaps achieved such returns in 55% of the periods, while largecaps did so in only 15%. This underscores midcaps’ role as an effective vehicle for long-term wealth creation.
Interestingly, the report also noted that investors who begin SIPs during market peaks often accumulate greater absolute wealth over time, despite marginally lower percentage returns, due to the benefit of longer compounding. For example, an investor who began a Rs 10,000 monthly SIP in the BSE Sensex TRI at the January 2008 peak would have invested Rs 21.40 lakh by October 2025, yielding Rs 79.43 lakh at an XIRR of 13.26%. In contrast, starting at the March 2009 bottom would yield ₹68.07 lakh at 13.37% XIRR, despite a smaller investment of Rs 20 lakh.
WhiteOak’s findings reaffirm that market timing has limited influence on long-term outcomes, and consistent investing through market cycles tends to smooth volatility. The report also found minimal differences between daily, weekly, and monthly SIPs, reinforcing that regular investing frequency matters less than long-term discipline.
When comparing largecap, midcap, and smallcap funds, the analysis found that midcaps delivered positive returns nearly 100% of the time, outperforming smallcaps (99%) and maintaining steadier growth patterns. Midcaps generated returns above 12% in roughly 95% of periods, compared with 72% for largecaps and 78% for smallcaps.
Performance metrics further validate this strength. The Nifty Midcap 150 TRI posted a maximum XIRR of 23.6% and a minimum of 5.9% over rolling 10-year periods, surpassing both the Nifty 100 TRI (4.3%–17.1%) and Nifty Smallcap 250 TRI (-0.5%–22.4%). This shows midcaps’ superior upside potential and comparatively lower downside risk.
WhiteOak also warned against delaying SIPs, labelling it the “Cost of Delay.” The report noted that postponing SIPs, even for short durations, can significantly reduce total returns, as compounding power weakens the longer one waits to start investing.
Top-performing schemes in 2025
According to a report by Analytics Insight, as of November 2025, mid-cap funds are experiencing renewed interest due to significant performance issues across sectors such as manufacturing, infrastructure, and technology. They are more likely to outperform large caps during market volatility than small caps.
Among the top-performing schemes are the HDFC Mid Cap Opportunities Fund (NAV ₹200.44), known for its stable track record; the Kotak Emerging Equity Fund (Rs 138.49), celebrated for consistent multi-cycle performance; and the Motilal Oswal Midcap Fund (₹103.41), which adopts a research-driven, fundamentals-focused approach. The Nippon India Growth Fund (₹4,250.07) remains a classic choice for long-term wealth creation, while the Invesco India Mid Cap Fund (₹223.89) and Tata Mid Cap Growth Fund (₹437.33) round out the list with their balanced, growth-oriented portfolios.
Top Midcap Mutual Funds – November 2025
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Fund Name: HDFC Mid Cap Opportunities Fund
NAV: Rs. 200.442 (as of November 7, 2025)
Highlights: A consistent performer with a strong and stable track record. Managed by a seasoned fund house, it invests in high-quality midcap companies with significant growth potential.
Ideal For: Investors with a 7–10 year horizon seeking steady wealth creation and market-linked returns.
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Fund Name: Kotak Emerging Equity Fund
NAV: Rs. 138.49 (as of October 31, 2025)
Highlights: Among the most reputed midcap funds, known for delivering strong returns across multiple market cycles. Offers diversified exposure to promising mid-sized firms with professional fund management.
Ideal For: Investors seeking reliable long-term performance and balanced growth across market phases.
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Fund Name: Motilal Oswal Midcap Fund
NAV: Rs. 103.41 (as of November 2025)
Highlights: Focuses on identifying high-quality midcap stocks with robust fundamentals and long-term growth potential. Recognized for its research-driven investment approach.
Ideal For: Investors who prefer a hands-on, research-focused strategy and aim for long-term capital growth.
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Fund Name: Nippon India Growth Fund
NAV: Rs. 4,250.07 (as of October 31, 2025)
Highlights: One of India’s oldest and best-performing midcap funds. Maintains a diversified portfolio across finance, manufacturing, and technology sectors, ensuring consistent alpha generation.
Ideal For: Investors looking for stability, legacy performance, and long-term wealth creation through diversification.
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Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.