Midcap mutual funds have turned out to be wealth creators for traders in the previous few years. These funds spend money on medium-sized firms which have sturdy progress potential and have traditionally outperformed large-cap friends in bullish markets. On this article, we deep dive into the top-performing midcap mutual funds in India that generated a formidable 267% to 365% absolute returns during the last 5 years.
Earlier, we’ve got written about 6 Greatest Worth Mutual Funds That Outperformed with 218% to 244% Returns in 5 Years, which attracted enormous investor curiosity. Now, allow us to verify how midcap mutual funds have carried out lately.
What Are Midcap Mutual Funds?
Midcap mutual funds make investments primarily in firms ranked between one hundred and first and 250th by way of market capitalization. These firms often have a powerful enterprise mannequin, potential to turn into massive caps, and might generate increased returns in comparison with massive caps over the long run.
Key Options:
- Deal with medium-sized firms with sturdy progress potential
- Increased return potential in comparison with large-cap funds
- Appropriate for traders with a medium to long-term horizon
- Carry increased volatility in comparison with large-cap funds
Listing of Prime 6 Midcap Mutual Funds with 5-Yr Absolute Returns
Mutual Fund | 5-Yr CAGR | 5-Yr Absolute Returns | 1 Lakh Funding Would Have Turned Into |
---|---|---|---|
Motilal Oswal Midcap Fund | 34.9% | 365% | ₹4.65 Lakhs |
Edelweiss Mid Cap Fund | 30.6% | 280% | ₹3.80 Lakhs |
Nippon India Progress Mid Cap Fund | 29.9% | 275.8% | ₹3.76 Lakhs |
HDFC Mid Cap Fund | 29.7% | 269% | ₹3.69 Lakhs |
Invesco India Mid Cap Fund | 29.3% | 275.8% | ₹3.76 Lakhs |
Quant Mid Cap Fund | 29.2% | 267% | ₹3.67 Lakhs |
Information as of 20-Sep-2025
Deep Dive into Prime 6 Midcap Mutual Funds within the Final 5 Years
#1 – Motilal Oswal Midcap Fund
Goal: Invests in mid-sized firms with sturdy progress alternatives, aiming to ship superior returns.
Annualised Returns:
- 1 Yr: 2.3%
- 2 Years: 30.8%
- 3 Years: 28.7%
- 5 Years: 34.9% (1 Lakh → ₹4.65 Lakhs)
- 10 Years: 19.7%
Who Can Make investments:
- Buyers looking for aggressive midcap publicity
- These with a minimal 5+ yr horizon
Threat Components:
- Excessive volatility throughout market downturns
- Sector focus dangers
We analysed this fund a number of instances earlier and likewise on this text 12 Mutual Funds Outperformed in Final 2 Years with 75% to 118% Returns.
#2 – Edelweiss Mid Cap Fund
Goal: Focuses on high quality midcap firms with sturdy steadiness sheets and progress potential.
Annualised Returns:
- 1 Yr: 3.2%
- 2 Years: 28.9%
- 3 Years: 25.8%
- 5 Years: 30.6% (1 Lakh → ₹3.80 Lakhs)
- 10 Years: 19.8%
Who Can Make investments:
- Buyers on the lookout for a steadiness of danger and return
- Appropriate for SIP traders with medium to long-term objectives
Threat Components:
- Liquidity dangers in smaller midcap firms
- Market corrections could affect returns considerably
This fund is among the many top-1 fund in our earlier analyisis at 5 Greatest Midcap Mutual Funds to Spend money on 2025 (Primarily based on Rolling Returns).
#3 – Nippon India Progress Mid Cap Fund
Goal: One of many oldest midcap funds, it invests in mid-sized firms with excessive progress visibility.
Annualised Returns:
- 1 Yr: 1.6%
- 2 Years: 24.5%
- 3 Years: 25.5%
- 5 Years: 29.9% (1 Lakh → ₹3.76 Lakhs)
- 10 Years: 19.1%
Who Can Make investments:
- Buyers looking for diversification past massive caps
- Lengthy-term traders aiming for wealth creation
Threat Components:
- Excessive volatility in comparison with massive caps
- Sector and stock-specific dangers
#4 – HDFC Mid Cap Fund
Goal: Goals to attain long-term capital appreciation by investing in basically sturdy midcap firms.
Annualised Returns:
- 1 Yr: 4.1%
- 2 Years: 23.3%
- 3 Years: 26.2%
- 5 Years: 29.7% (1 Lakh → ₹3.69 Lakhs)
- 10 Years: 19.2%
Who Can Make investments:
- Buyers preferring a big AuM and constant monitor document
- Lengthy-term traders looking for stability with midcap publicity
Threat Components:
- Market danger attributable to fairness publicity
- Returns can fluctuate sharply in brief time period
Earlier we explored this fund among the many 10 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 10 Lakhs in 15 Years.
#5 – Invesco India Mid Cap Fund
Goal: Focuses on high-quality mid-sized companies with sustainable earnings progress.
Annualised Returns:
- 1 Yr: 9.8%
- 2 Years: 31.9%
- 3 Years: 29.3%
- 5 Years: 29.3% (1 Lakh → ₹3.76 Lakhs)
- 10 Years: 20.4%
Who Can Make investments:
- Buyers on the lookout for sturdy SIP returns
- Those that can stay invested for five+ years
Threat Components:
- Increased volatility attributable to stock-specific bets
- Could underperform in bearish phases
#6 – Quant Mid Cap Fund
Goal: A high-beta midcap fund that makes use of energetic sector rotation and tactical allocation methods.
Annualised Returns:
- 1 Yr: -11.7%
- 2 Years: 14.8%
- 3 Years: 18.2%
- 5 Years: 29.2% (1 Lakh → ₹3.67 Lakhs)
- 10 Years: 18.3%
Who Can Make investments:
- Aggressive traders with excessive danger urge for food
- These snug with volatility in pursuit of upper returns
Threat Components:
- Very excessive short-term volatility
- Tactical method could not go well with all traders
This fund is a part of 8 MorningStar 5 Star Rated Mutual Funds to spend money on 2025. Nevertheless traders ought to concentrate on Quant MF Entrance Working case which got here up few years again. Publish this a lot of Quant AMC MFs have been underperforming. You’ll be able to see the final 1 yr efficiency the place it posted destructive returns.
Key Takeaways and Conclusion
Midcap mutual funds have been stellar wealth creators, delivering as much as 365% absolute returns in 5 years. Motilal Oswal Midcap Fund has emerged as the highest performer, adopted by Edelweiss and Nippon India Midcap Funds. These schemes are perfect for traders who can stand up to short-term volatility and keep invested for the long run. Nevertheless, traders ought to align their selections with their monetary objectives and danger profile.
