Final Up to date on Jan 31, 2025 by Anjali Chourasiya
In the event you’re seeking to strike a stability between danger and reward, mid cap mutual funds could be the candy spot on your portfolio. These funds deal with mid-sized corporations which are typically in a dynamic progress part, providing the potential for larger returns in comparison with massive cap funds, but with much less volatility than small caps. The attraction of mid cap funds lies of their capacity to seize the expansion of rising corporations that might be the market leaders of tomorrow. However with so many choices obtainable, how do you establish one of the best mid cap mutual funds on your funding technique? On this article, let’s discover one of the best mid cap mutual funds, their options, benefits, dangers, how to decide on the highest mid cap mutual funds, and extra.
Finest Mid-Cap Mutual Fund
| Title | AUM (Rs. in cr.) | CAGR 3Y (%) | Expense Ratio (%) | Minimal Lumpsum (Rs.) | Minimal SIP (Rs.) | Exit Load (%) |
| Motilal Oswal Midcap Fund | 14,445.55 | 39.10 | 0.61 | 500.00 | 1,500.00 | 1.00 |
| Quant Mid Cap Fund | 9,282.92 | 33.05 | 0.58 | 5,000.00 | 0.00 | 0.50 |
| HDFC Mid-Cap Alternatives Fund | 75,382.30 | 30.08 | 0.74 | 100.00 | 100.00 | 1.00 |
| Mahindra Manulife Mid Cap Fund | 3,165.98 | 29.05 | 0.43 | 1,000.00 | 0.00 | 1.00 |
| Nippon India Progress Fund | 30,838.94 | 28.84 | 0.79 | 100.00 | 0.00 | 1.00 |
| Edelweiss Mid Cap Fund | 6,994.17 | 27.60 | 0.30 | 100.00 | 100.00 | 1.00 |
| Sundaram Mid Cap Fund | 12,465.38 | 27.16 | 0.89 | 100.00 | 1,000.00 | 1.00 |
| ITI Mid Cap Fund | 985.87 | 26.74 | 0.43 | 5,000.00 | 0.00 | 1.00 |
| Invesco India Midcap Fund | 5,216.03 | 25.58 | 0.61 | 1,000.00 | 0.00 | 1.00 |
| Kotak Rising Fairness Fund | 49,023.27 | 25.37 | 0.34 | 100.00 | 100.00 | 1.00 |
Be aware: The information is from twelfth August 2024. It’s filtered utilizing Tickertape Mutual Fund Screener with the next parameters-
- Class > Fairness > Mid-cap fund
- AUM (Property Below Administration)
- 3-yr CAGR: Set to excessive – Type from highest to lowest
- Expense Ratio
- Minimal Lumpsum
- Minimal SIP
- Exit Load
🚀 Professional Tip: Use Tickertape’s Mutual Fund Screener to filter and examine funds based mostly on efficiency, expense ratio, and danger. Discover funds that match your targets and danger tolerance for smarter funding decisions.
Concerning the 10 Finest Mid Cap Mutual Funds in India
Motilal Oswal Midcap Fund
The Motilal Oswal Midcap Fund, managed by Motilal Oswal Asset Administration Firm, focuses on investing in mid-sized corporations with excessive progress potential. The fund has an AUM of Rs. 14,445.55 cr., and has delivered a formidable 3-yr CAGR of 39.10%. The fund prices an expense ratio of 0.61%. Buyers can enter the fund with a minimal lump sum of Rs. 500 or begin a SIP with Rs. 1,500. An exit load of 1.00% applies if models are redeemed inside a 12 months.
Quant Mid Cap Fund
Quant Mid Cap Fund, managed by Quant Mutual Fund, is thought for its dynamic funding technique, which adapts to altering market circumstances. With an AUM of Rs. 9,282.92 cr., the fund has achieved a 3-yr CAGR of 33.05%. The fund has a comparatively low expense ratio of 0.58%. The minimal funding for a lump sum is Rs. 5,000, with no necessary SIP requirement. The exit load is 0.50% if models are offered inside a 12 months, encouraging longer-term holding.
HDFC Mid-Cap Alternatives Fund
HDFC Mid-Cap Alternatives Fund, one of many flagship choices from HDFC Asset Administration Firm, is among the many largest in its class with an AUM of Rs. 75,382.30 cr. The fund has a powerful observe file, with a 3-yr CAGR of 30.08%. The expense ratio stands at 0.74%. Buyers can begin with a minimal lumpsum funding of Rs. 100 or go for a SIP of the identical quantity, making it accessible to a broad vary of traders. The exit load is 1.00% if models are redeemed inside a 12 months.
Mahindra Manulife Mid Cap Fund
The Mahindra Manulife Mid Cap Fund, managed by Mahindra Manulife Mutual Fund, targets mid-cap corporations which have sturdy progress prospects. The fund has an AUM of Rs. 3,165.98 cr., and has recorded a 3-yr CAGR of 29.05%. It boasts a low expense ratio of 0.43%. The fund requires a minimal lumpsum funding of Rs. 1,000, with no SIP requirement. An exit load of 1.00% applies if redeemed inside a 12 months, which is normal throughout the class.
Nippon India Progress Fund
Nippon India Progress Fund, from Nippon Life India Asset Administration, is likely one of the oldest mid-cap funds within the Indian market, with a big AUM of Rs. 30,838.94 cr. The fund has achieved a 3-yr CAGR of 28.84%. The expense ratio is 0.79%, barely larger than some friends. Buyers can begin with a minimal lump sum of Rs. 100, and there’s no SIP requirement. An exit load of 1.00% applies if models are redeemed inside a 12 months.
Edelweiss Mid Cap Fund
Managed by Edelweiss Asset Administration, the Edelweiss Mid Cap Fund has an AUM of Rs. 6,994.17 cr. It focuses on mid-cap corporations with a long-term progress horizon, and has achieved a 3-yr CAGR of 27.60%. The fund’s expense ratio is among the many lowest in its class at 0.30%. The fund is accessible with a minimal lump sum of Rs. 100, and a SIP will also be began with Rs. 100. An exit load of 1.00% applies if models are redeemed inside a 12 months.
Sundaram Mid Cap Fund
Sundaram Mid Cap Fund, managed by Sundaram Mutual Fund, has a long-standing presence within the mid-cap class with an AUM of Rs. 12,465.38 cr. The fund has delivered a 3-yr CAGR of 27.16%. The expense ratio is 0.89%. Buyers can begin with a minimal lump sum of Rs. 100 or a SIP of Rs. 1,000. The fund has an exit load of 1.00% if redeemed inside a 12 months.
ITI Mid Cap Fund
ITI Mid Cap Fund, managed by ITI Mutual Fund, is comparatively new however has proven promising efficiency with a 3-yr CAGR of 26.74%. The fund has an AUM of Rs. 985.87 cr. and maintains a low expense ratio of 0.43%. The minimal lumpsum funding is Rs. 5,000, and there’s no SIP requirement. The fund imposes an exit load of 1.00% if models are offered inside a 12 months.
Invesco India Midcap Fund
The Invesco India Midcap Fund, managed by Invesco Mutual Fund, focuses on mid-cap corporations with sturdy fundamentals and progress potential. The fund has an AUM of Rs. 5,216.03 cr., and has recorded a 3-yr CAGR of 25.58%. The expense ratio of the fund is 0.61%. Buyers can enter with a minimal lump sum of Rs. 1,000, and there’s no SIP requirement. An exit load of 1.00% applies if models are redeemed inside a 12 months.
Kotak Rising Fairness Fund
Kotak Rising Fairness Fund, managed by Kotak Mahindra Asset Administration Firm, is likely one of the largest mid-cap funds with an AUM of Rs. 49,023.27 cr. The fund has a 3-yr CAGR of 25.37%. It has a low expense ratio of 0.34%. The fund is accessible with a minimal lump sum funding of Rs. 100 and a SIP of the identical quantity. An exit load of 1.00% applies if models are redeemed inside a 12 months.
What’s a mid-cap mutual fund?
Mid Cap mutual funds are fairness mutual funds that primarily spend money on mid-sized corporations in India, with market capitalisation between Rs. 5,000 cr and Rs. 20,000 cr. These corporations are ranked 101 to 250 based mostly on their market capitalisation by the Securities and Trade Board of India (SEBI).
Mid-cap mutual funds sometimes allocate at the very least 65% of their complete property to fairness and equity-related securities of mid-cap corporations, with the remaining in debt securities or different lessons. Mid-cap mutual funds provide the soundness of large-cap corporations with the expansion potential of small-cap corporations. With a various vary of mid-cap shares from varied sectors, these professionally managed funds provide traders a chance to faucet into the thrilling world of mid-cap corporations which are on the rise.
Options of Finest Mid Cap Mutual Funds
- Progress Potential: Mid cap mutual funds typically spend money on corporations which are of their progress part, providing the potential for larger returns as these corporations increase.
- Diversification: These funds typically spend money on a broad vary of mid-sized corporations throughout varied sectors. This diversification might assist scale back danger by not relying closely on any single inventory or sector.
- Energetic Fund Administration: Many mid cap mutual funds are actively managed, the place fund managers constantly monitor and alter the portfolio to capitalise on market alternatives.
- Balanced Danger and Return: Mid cap mutual funds might provide a center floor between the soundness of huge cap funds and the upper progress potential of small cap funds.
- Liquidity: Mid cap corporations are typically extra liquid than small cap corporations, which might imply that mid cap mutual funds would possibly provide comparatively higher liquidity. Nevertheless, it is very important notice that liquidity should be a difficulty throughout market downturns.
Select the Finest Mid Cap Mutual Funds?
Choosing the proper mid cap mutual fund can appear daunting, however with the proper method, you may make knowledgeable decisions that align along with your monetary targets. Right here’s a step-by-step information on the way you would possibly select one of the best mid cap mutual funds:
1. Assess Historic Efficiency
When evaluating mid cap mutual funds, one of many first steps might be to evaluation their historic efficiency. Whereas previous efficiency doesn’t assure future outcomes, it could provide insights into how the fund has managed completely different market circumstances.
2. Consider the Fund Supervisor’s Experience
The fund supervisor performs a pivotal position within the efficiency of mid cap mutual funds. It’s essential to evaluate the fund supervisor’s observe file, notably their expertise with managing mid cap portfolios. A supervisor with a confirmed historical past of profitable inventory choice and portfolio administration would possibly point out a better likelihood of attaining beneficial outcomes.
3. Analyse Portfolio Composition
Understanding what’s contained in the fund is vital to creating an knowledgeable choice. Mid cap mutual funds sometimes spend money on a mixture of mid-sized corporations throughout varied sectors. By analysing the portfolio composition, you will get a way of the sectors and firms the fund is betting on. A well-diversified portfolio would possibly scale back danger, whereas concentrated bets in particular sectors might result in larger volatility.
4. Think about the Expense Ratio
The expense ratio is a vital issue that may affect your returns. This ratio represents the annual charge that the fund prices to handle your funding. Usually, a decrease expense ratio could be extra beneficial, because it leaves extra room on your funding to develop.
5. Take a look at Danger-Adjusted Returns
Merely taking a look at returns won’t provide the full image. It’s vital to contemplate how a lot danger the fund is taking to realize these returns. Metrics just like the Sharpe Ratio will help you consider the fund’s efficiency on a risk-adjusted foundation. The next Sharpe Ratio signifies that the fund is delivering higher returns for the extent of danger it’s taking, which could be a key consideration if you happen to’re seeking to stability danger and reward.
6. Examine Liquidity and Exit Masses
Liquidity is one other essential issue, particularly if you happen to would possibly must entry your cash rapidly. Funds with larger liquidity guarantee which you can redeem your funding with out important worth affect. Moreover, you have to be conscious of any exit masses, that are charges charged if you happen to promote the fund earlier than a specified interval. Funds with low or no exit masses could be preferable if flexibility is vital to you.
The most effective half is that yow will discover all this info proper on the asset pages on Tickertape and the mutual fund screener. Test it out now!
Spend money on Mid Cap Mutual Funds?
When you’ve chosen one of the best mid cap mutual funds, the following step is to take a position. Right here’s a step-by-step course of in short.
1. Outline Your Funding Targets
Earlier than you start, it’s vital to obviously outline your funding aims. Are you investing for long-term progress, or do you want a fund that gives periodic earnings? Understanding your targets will help you select between completely different choices like progress plans or dividend plans inside mid cap mutual funds.
2. Select Between Lump Sum and SIP
Deciding tips on how to make investments is simply as vital as deciding what to spend money on. You may select to take a position a lump sum quantity or go for a Systematic Funding Plan (SIP). A SIP lets you make investments a hard and fast quantity at common intervals, which will help in averaging the acquisition price over time, lowering the affect of market volatility.
3. Monitor Your Investments Commonly
After you’ve invested, it’s essential to regulate your investments to make sure they’re on observe to satisfy your targets. Common monitoring will help you make well timed selections, resembling rebalancing your portfolio or switching funds if crucial. For this goal, activate ‘Tickertape Alerts’ and by no means miss an replace of your favorite fund.
4. Rebalance Your Portfolio Periodically
As your funding grows, the unique allocation would possibly shift, doubtlessly rising your danger publicity. Periodic rebalancing of your portfolio will help keep your required asset allocation. For instance, in case your mid cap mutual funds have appreciated considerably, you would possibly contemplate rebalancing by transferring a few of your positive aspects into different asset lessons. You may join your portfolio to Tickertape to analyse if any of your investments have change into a crimson flag or has modified their composition. Analyse your portfolio completely to rebalance it. Strive it now!
5. Seek the advice of with a Monetary Advisor
In the event you’re uncertain about how mid cap mutual funds match into your total monetary plan, consulting with a monetary advisor could be useful. An advisor can present personalised recommendation based mostly in your danger tolerance, funding targets, and monetary state of affairs.
Benefits of Investing in Mid Cap Mutual Funds
1. Excessive Progress Return
Mid-cap corporations have the potential to change into future large-cap corporations, providing important progress potential. As well as, they’ll ship substantial returns and outperform large-cap mutual funds as they did previously.
2. Portfolio Diversification
Investing in mid-cap mutual funds lets you discover investing in mid-cap corporations with market capitalisations between Rs. 5,000 cr. and Rs. 20,000 cr. These corporations are ranked from 101 to 250 based mostly on their market capitalisation by the Securities and Trade Board of India (SEBI).
3. Minimise Danger
Investing in shares of various mid-cap corporations can cushion your funding portfolio in opposition to financial downturns and scale back danger in comparison with direct funding in particular person shares.
4. Low Funding Quantity
You may spend money on one of the best mid-cap mutual funds for as little as Rs. 100. This permits traders who’re nonetheless sceptical about investing in mutual funds to check the waters.
5. Transparency
Mid-cap mutual funds are carefully regulated by the Securities and Trade Board of India (SEBI), which mandates them to reveal their Web Asset Values (NAVs), expense ratios, and month-end portfolios on their web sites, guaranteeing transparency for traders.
6. Managed by Skilled Fund Managers
In the event you’re uncertain about one of the best mid-cap shares on your portfolio, the mid-cap mutual fund managers know precisely how one can generate exponential returns. By investing in mid-cap mutual funds, that are closely invested in fairness throughout quite a few sectors of mid-sized corporations, you may spend money on a number of the finest mid-cap shares.
Dangers of Mid Cap Mutual Funds
1. Market Volatility
Mid cap shares are typically extra unstable than massive cap shares. This larger volatility implies that mid cap mutual funds would possibly expertise important fluctuations in worth, which might have an effect on your funding, particularly in unstable market circumstances.
2. Financial Sensitivity
Mid cap corporations could also be extra prone to financial downturns in comparison with their massive cap counterparts. This sensitivity would possibly result in underperformance in mid cap mutual funds throughout difficult financial occasions, which is a vital consideration in case you are pondering of investing in these funds.
3. Liquidity Dangers
Whereas mid cap corporations typically have higher liquidity in comparison with small caps, liquidity can nonetheless change into a priority in periods of market stress. This would possibly affect the fund supervisor’s capacity to purchase or promote shares at beneficial costs, doubtlessly affecting the fund’s total efficiency.
4. Administration Danger
The efficiency of mid cap mutual funds, particularly these which are actively managed, largely is determined by the selections made by the fund supervisor. Poor decision-making might result in suboptimal returns, which is a danger that comes with actively managed funds.
5. Sector Focus
Some mid cap mutual funds may need a better publicity to particular sectors. If these sectors underperform, the fund’s returns might be negatively impacted, which might improve the chance related along with your funding.
Elements to Think about Earlier than Investing in Mid Cap Mutual Funds
When you find yourself contemplating investing in mid cap mutual funds, it’s vital to guage a number of key elements. Listed here are a number of the elements which you can contemplate earlier than investing.
1. Funding Horizon: Mid cap mutual funds sometimes require a medium to long-term funding horizon. These funds spend money on mid-sized corporations which will want time to grasp their progress potential.
2. Danger Urge for food: Mid cap mutual funds are typically extra unstable than massive cap funds. This elevated volatility implies that mid cap mutual funds can expertise important fluctuations in worth. If in case you have a better danger tolerance and are comfy with potential short-term declines in your funding, mid cap mutual funds could also be appropriate for you.
3. Consistency of Fund Efficiency: You would possibly wish to consider the consistency of a fund’s efficiency throughout varied market cycles. Funds which have demonstrated secure returns over time might provide a greater indication of how they could carry out sooner or later.
4. Fund Supervisor’s Expertise: The expertise and observe file of the fund supervisor can considerably affect the efficiency of mid cap mutual funds. Managers with a confirmed historical past of choosing high quality mid cap shares would possibly improve the fund’s potential for delivering good returns.
5. Expense Ratio and Prices: The expense ratio, which is the price of managing the fund, can affect your returns. Decrease expense ratios are typically preferable, as they depart extra room on your funding to develop. Moreover, it is best to contemplate any exit masses or different transaction charges that would have an effect on your total returns.
6. Sector and Inventory Focus: Some mid cap mutual funds may need larger publicity to particular sectors or shares, which might improve danger if these sectors underperform. It’s vital to test the fund’s portfolio to make sure it’s diversified throughout varied sectors.
Who Can Spend money on Mid Cap Mutual Funds?
Mid cap mutual funds might not be appropriate for each investor. Right here’s a have a look at who would possibly contemplate investing in these funds:
1. Buyers with Average to Excessive Danger Tolerance
Mid cap mutual funds could be applicable for traders who’re comfy with average to excessive ranges of danger. These funds will be extra unstable than massive cap funds because of the nature of mid-sized corporations.
2. People with a Medium to Lengthy-Time period Funding Horizon
If you’ll be able to make investments for a medium to long-term interval, sometimes 5 to 7 yrs or extra, mid cap mutual funds could be appropriate. This time-frame permits mid cap corporations to doubtlessly develop and enhance their market place, which might translate into larger returns over the long term.
3. Buyers In search of Portfolio Diversification
Mid cap mutual funds might be priceless in case you are seeking to diversify your funding portfolio past massive cap and small cap funds. They provide a stability between the soundness of huge caps and the expansion potential of small caps, which could assist in making a well-rounded portfolio.
4. Skilled Buyers or These with Monetary Steerage
Mid cap mutual funds could also be extra appropriate for knowledgeable traders who perceive market dynamics and might navigate the volatility related to mid-sized corporations. If you’re a much less skilled investor, consulting with a monetary advisor would possibly enable you decide if mid cap mutual funds align along with your monetary aims.
5. Buyers Interested by Energetic Fund Administration
Mid cap mutual funds are sometimes actively managed, which means that fund managers steadily alter the portfolio to capitalise on market alternatives. In the event you want a extra hands-on method the place the fund supervisor performs a big position in inventory choice and portfolio administration, mid cap mutual funds would possibly attraction to you.
Tax implications on mid-cap mutual funds
Since mid-cap mutual funds are categorised as asset lessons, understanding the taxation on mid-cap funds is essential to evaluate your post-tax returns precisely. As well as, it helps you establish your funding positive aspects when redeeming your funding.
The capital positive aspects on mid-cap mutual funds are taxed based mostly on the period of your funding:
Brief-Time period Capital Positive aspects (STCG)
In the event you maintain fairness mutual funds for lower than a 12 months, the positive aspects from these investments are categorised as short-term capital positive aspects. In response to the brand new funds, these positive aspects at the moment are taxed at a price of 20%, which has been elevated from the earlier price of 15%.
Lengthy-Time period Capital Positive aspects (LTCG)
For fairness mutual funds held for greater than a 12 months, the positive aspects are thought-about long-term capital positive aspects. The important thing factors to notice below the brand new funds are:
- Tax-Free Restrict: Positive aspects as much as Rs. 1.25 lakh in a monetary 12 months stay tax-free. This restrict has been elevated from the earlier threshold of Rs. 1 lakh.
- Tax Fee: Any positive aspects above Rs. 1.25 lakh are taxed at a flat price of 12.5%. It was beforehand taxed at 10%.
- Indexation: It’s vital to notice that the good thing about indexation, which beforehand allowed traders to regulate the acquisition worth of their property for inflation, has been eliminated for all asset lessons, together with fairness mutual funds.
Indexation is a technique used to regulate the acquisition worth of an asset (like property or gold) for inflation through the years. This adjusted worth is then used to calculate capital positive aspects. Beforehand, long-term capital positive aspects from promoting property, gold, or different unlisted property have been taxed at 20%, however you could possibly use indexation to scale back your taxable revenue. The brand new rule simplifies the tax construction by setting a flat 12.5% tax price for all long-term capital positive aspects. Nevertheless, it removes the indexation profit.
Abstract
| Capital Positive aspects Tax | Holding Interval | Outdated Fee | New Fee |
| Brief-Time period Capital Positive aspects (STCG) | Lower than 12 months | 15% | 20% |
| Lengthy-Time period Capital Positive aspects (LTCG) | Greater than 12 months | 10% | 12.50% |
- No Indexation Profit: This modification impacts the general tax legal responsibility, doubtlessly rising it for long-term traders.
Being conscious of those tax implications on mid-cap funds lets you precisely assess your potential returns after accounting for taxes.
Key issues to contemplate earlier than investing in mid-cap funds
- Lengthy-term funding horizon: Since mid-cap mutual funds spend money on corporations which are but to change into large-cap, endurance is required for potential progress. These corporations might take time to get better throughout financial slowdowns, so a long-term funding horizon of three to five years is beneficial to profit from the funding absolutely.
- Excessive dangers: Mid-cap funds carry larger dangers than large-cap funds but additionally provide the potential for market-beating returns. Solely traders with an urge for food for larger dangers ought to contemplate investing on this class.
- Brief to medium-term volatility: Mid-cap funds will be unstable within the quick to medium time period, with sudden drops in portfolio worth. Solely these prepared to tolerate this volatility and fathom the dangers concerned ought to spend money on mid-cap funds.
Conclusion
Understanding mid-cap mutual funds’ dangers and potential rewards is essential earlier than making funding selections. These funds could also be appropriate for traders with a long-term funding horizon, willingness to take larger dangers, and luxury with quick to medium-term volatility. On Tickertape Mutual Fund Screener, you may discover quite a few mid-cap mutual funds that match along with your funding thesis.
FAQs About Mid Cap Funds
How to decide on the proper mid-cap mutual fund for the first-time investor?
Firstly, it is best to assess the portfolio for diversification, consider previous efficiency like 3-yr and 5-yr CAGR, and evaluation the fund supervisor’s historic efficiency. These points present insights for knowledgeable funding selections.
What are the typical anticipated returns from mid-cap mutual funds?
In the event you’re invested in mid-cap mutual funds for 3 yr, you may earn a good return within the 12-17% vary.
The place do the fund managers of mid-cap funds make investments?
Other than investing in mid-cap corporations, the fund managers of mid-cap funds spend money on debt.
Are mid-cap funds high-risk?
Mid-cap mutual funds, being invested in equities, might exhibit short-term volatility. Nonetheless, over an prolonged interval, the chance significantly decreases.
How lengthy ought to I keep invested in mid-cap mutual funds?
It is determined by the % of returns you expect in opposition to your funding. Since it’s an funding in fairness funds, you want to keep invested for at the very least 3 yr to earn first rate returns.
What’s a mid cap index fund?
A mid cap index fund tracks a selected mid cap index, investing in a diversified portfolio of mid-sized corporations to duplicate the index’s efficiency. It’s an economical approach to acquire publicity to mid cap shares with decrease administration charges resulting from passive administration.
How do I consider one of the best massive and midcap fund?
To judge one of the best massive and midcap fund, contemplate the fund’s long-term efficiency, consistency in returns, and the standard of its portfolio, which ought to ideally stability massive cap stability with mid cap progress. Additionally, test the expense ratio and the fund supervisor’s observe file to make sure efficient administration.
