24 Best Mid Cap Mutual Funds to Invest in 2024

Greetings, savvy investors! Are you prepared to explore the world of mid-cap mutual funds? Imagine yourself in the stock market, a bustling arena where companies of all sizes make their moves. Now, envision yourself in the sweet spot—mid-cap territory—where potential soars and growth takes center stage.

Did you know that mid-cap stocks have a talent for delivering some of the most thrilling returns? Let me share an eye-opening statistic: Over the past year, mid-cap mutual funds have captured the attention of investors with an impressive average return of 24.5%! Yes, you read that correctly—24.5%—making them the beloved stars of the investment landscape.

Now, if you’re thinking, “This sounds intriguing, but where should I begin?”—fret not! We’ve got you covered. In this comprehensive guide, we’ll walk you through the 24 best mid-cap mutual funds, illuminating your investment journey in 2024. Get ready to unlock the true potential of mid-cap mutual funds and embark on a journey where growth knows no bounds.

24 Best Mid-Cap Mutual Funds to Invest in 2024

The listed mutual funds are for informational purposes only and are not ranked or recommended. Investors should conduct thorough research, consider their financial goals and risk tolerance, and consult a financial advisor before investing. Past performance does not guarantee future results, and investments can fluctuate in value. Individual suitability and understanding of risks should guide investment decisions.

1. Motilal Oswal Midcap Fund Direct-Growth

Minimum Investment Amount: ₹500
AUM: ₹6,060 Cr
1-Year Returns: 27.0%

Motilal Oswal Midcap Fund, in the direct growth category, offers investors an opportunity to capitalize on the growth potential of mid-cap stocks. With an impressive 1-year return of 27.0%, the fund reflects its ability to deliver competitive returns. The minimum investment amount of ₹500 and an AUM of ₹6,060 Crores make it accessible to a wide range of investors.

2. SBI Magnum Mid Cap Direct Plan-Growth

Minimum Investment Amount: ₹5,000
AUM: ₹13,202 Cr
1-Year Returns: 21.6%

SBI Magnum Mid Cap Fund, in the direct plan growth category, presents an attractive option for investors seeking exposure to mid-cap opportunities. The fund has delivered a competitive 1-year return of 21.6%, showcasing its potential for capital appreciation. With a minimum investment amount of ₹5,000 and an AUM of ₹13,202 Crores, it caters to investors looking for a well-managed mid-cap fund.

3. Quant Mid Cap Fund Direct-Growth

Minimum Investment Amount: ₹5,000
AUM: ₹3,268 Cr
1-Year Returns: 25.7%
3-Year Returns: 25.7%

Quant Mid Cap Fund, positioned in the direct growth category, stands out as a lucrative option for investors seeking exposure to mid-cap stocks. The fund has demonstrated robust performance with a noteworthy 1-year return of 25.7%. Additionally, the 3-year return of 25.7% emphasizes its consistency. With a minimum investment amount of ₹5,000 and an AUM of ₹3,268 Crores, it caters to investors looking for growth potential in the mid-cap space.

4. HDFC Mid Cap Opportunities Direct Plan-Growth

Minimum Investment Amount: ₹100
AUM: ₹47,846 Cr
1-Year Returns: 32.9%

HDFC Mid Cap Opportunities Fund, in the direct plan growth category, emerges as an attractive choice for investors seeking exposure to mid-cap companies. The fund has demonstrated an impressive 1-year return of 32.9%, showcasing its potential for substantial capital appreciation. With a minimum investment amount of ₹100 and a substantial AUM of ₹47,846 Crores, it reflects investor trust and effective fund management.

5. Nippon India Growth Fund Direct-Growth

Minimum Investment Amount: ₹100
AUM: ₹19,082 Cr
1-Year Returns: 32.0%

Nippon India Growth Fund, positioned in the direct growth category, offers investors an opportunity to tap into the growth potential of the market. With a commendable 1-year return of 32.0%, the fund showcases its ability to navigate market conditions successfully. The minimum investment amount of ₹100 and an AUM of ₹19,082 Crores make it accessible to a wide range of investors.

6. Edelweiss Mid Cap Direct Plan-Growth:

Minimum Investment Amount: ₹100
AUM: ₹3,793 Cr
1-Year Returns: 23.1%

Edelweiss Mid Cap Direct Plan, with a minimum investment amount of ₹100, is tailored for investors looking to capitalize on mid-cap opportunities. The fund manages an AUM of ₹3,793 Crores, reflecting its popularity among investors. With a 23.1% return in the last year, the fund demonstrates a balanced approach to risk and return in the dynamic mid-cap segment.

7. Kotak Emerging Equity Fund Direct-Growth:

Minimum Investment Amount: ₹100
AUM: ₹33,700 Cr
1-Year Returns: 21.9%

Kotak Emerging Equity Fund, with a minimum investment of ₹100, is positioned to capture the growth potential of mid-cap stocks. Managing an AUM of ₹33,700 Crores, the fund stands out as a prominent player in this segment. Despite market fluctuations, the fund has delivered a commendable 21.9% return over the past year, showcasing its resilience and potential for wealth creation.

8. Mirae Asset Midcap Fund Direct-Growth:

Minimum Investment Amount: ₹5,000
AUM: ₹11,784 Cr
1-Year Returns: 22.4%

Mirae Asset Midcap Fund, requiring a minimum investment of ₹5,000, is designed for investors seeking growth opportunities in the mid-cap space. With an AUM of ₹11,784 Crores, the fund has gained traction among investors. The fund’s 22.4% return over the past year underscores its ability to navigate market dynamics and deliver consistent performance.

9. PGIM India Midcap Opportunities Fund Direct-Growth:

Minimum Investment Amount: ₹5,000
AUM: ₹9,102 Cr
1-Year Returns: 11.6%

PGIM India Midcap Opportunities Fund, with a minimum investment of ₹5,000, caters to investors looking for growth potential within mid-cap stocks. Managing an AUM of ₹9,102 Crores, the fund has established itself as a key player in this segment. Despite challenges in the market, the fund has delivered an 11.6% return over the past year, showcasing its ability to navigate market conditions.

10. Baroda Midcap Direct Fund Growth:

Minimum Investment Amount: ₹5,000
AUM: ₹92 Cr
1-Year Returns: 27.5%

Baroda Midcap Direct Fund, with a minimum investment of ₹5,000, provides investors an avenue to tap into the growth of mid-cap companies. Managing an AUM of ₹92 Crores, the fund is positioned to offer investors exposure to this dynamic segment. With a 27.5% return in the last year, the fund demonstrates its ability to identify and capitalize on promising investment opportunities.

11. Mahindra Manulife Mid Cap Fund Direct-Growth:

Minimum Investment Amount: ₹1,000
AUM: ₹1,554 Cr
1-Year Returns: 31.5%

Mahindra Manulife Mid Cap Fund, with a minimum investment of ₹1,000, caters to investors seeking growth within mid-cap stocks. Managing an AUM of ₹1,554 Crores, the fund has gained recognition for its performance. The fund’s 31.5% return over the past year underscores its ability to deliver consistent and attractive returns in the dynamic mid-cap segment.

12. Baroda BNP Paribas Midcap Direct-Growth:

Minimum Investment Amount: ₹5,000
AUM: ₹1,471 Cr
1-Year Returns: 21.8%

Baroda BNP Paribas Midcap Fund, requiring a minimum investment of ₹5,000, offers investors an opportunity to participate in the growth potential of mid-cap companies. Managing an AUM of ₹1,471 Crores, the fund has established itself as a notable player in this segment. With a 21.8% return in the last year, the fund showcases its ability to navigate market dynamics and deliver competitive returns.

13. Union Midcap Fund Direct-Growth:

Minimum Investment Amount: ₹1,000
AUM: ₹838 Cr
1-Year Returns: 20.4%

Union Midcap Fund, with a minimum investment of ₹1,000, is tailored for investors seeking growth within mid-cap stocks. Managing an AUM of ₹838 Crores, the fund has garnered attention for its performance. Despite market fluctuations, the fund has delivered a 20.4% return over the past year, reflecting its resilience and ability to generate attractive returns.

14. Tata Midcap Growth Direct Plan Growth:

Minimum Investment Amount: ₹5,000
AUM: ₹2,521 Cr
1-Year Returns: 27.7%

Tata Midcap Growth Direct Plan, with a minimum investment of ₹5,000, provides investors an avenue to tap into the growth potential of mid-cap companies. Managing an AUM of ₹2,521 Crores, the fund is positioned to offer investors exposure to this dynamic segment. With a 27.7% return in the last year, the fund demonstrates its ability to identify and capitalize on promising investment opportunities.

15. Invesco India Mid Cap Fund Direct-Growth:

Minimum Investment Amount: ₹1,000
AUM: ₹3,418 Cr
1-Year Returns: 23.8%

Invesco India Mid Cap Fund, requiring a minimum investment of ₹1,000, caters to investors seeking growth within mid-cap stocks. Managing an AUM of ₹3,418 Crores, the fund has gained recognition for its performance. The fund’s 23.8% return over the past year underscores its ability to deliver consistent and attractive returns in the dynamic mid-cap segment.

16. Quant Mid Cap Fund – Direct-Growth:

Minimum SIP Investment Amount: ₹5,000
AUM (Cr.): ₹3,140
3-Year Return: 25.7%

Quant Mid Cap Fund, with a minimum SIP investment amount of ₹5,000 and an AUM of ₹3,140 Crores, has demonstrated its strength over a 3-year period with a notable 25.7% return. This long-term perspective showcases the fund’s ability to navigate market cycles and deliver sustained performance for investors seeking mid-cap exposure.

17. AXIS Midcap Fund – Direct-Growth:

Minimum SIP Investment Amount: ₹100
AUM (Cr.): ₹22,655
3-Year Return: 16.5%

AXIS Midcap Fund, with a minimum SIP investment amount of ₹100 and an AUM of ₹22,655 Crores, has displayed its resilience over a 3-year period with a 16.5% return. The fund’s consistent performance indicates its potential to weather market volatility and provide investors with steady growth in the mid-cap segment.

18. Baroda BNP Paribas Mid Cap Fund – Direct-Growth:

Minimum SIP Investment Amount: ₹5,000
AUM (Cr.): ₹1,513
3-Year Return: 21.8%

Baroda BNP Paribas Mid Cap Fund, with a minimum SIP investment amount of ₹5,000 and an AUM of ₹1,513 Crores, has demonstrated its ability to navigate the mid-cap space over a 3-year period with a 21.8% return. The fund’s consistent performance underlines its capacity to generate sustained returns for investors looking for long-term growth.

19. Kotak Emerging Equity Fund – Direct Growth:

Minimum SIP Investment Amount: ₹100
AUM (Cr.): ₹33,918
3-Year Return: 21.9%

Kotak Emerging Equity Fund, with a minimum SIP investment amount of ₹100 and an AUM of ₹33,918 Crores, has exhibited stability and growth over a 3-year period with a 21.9% return. The fund’s consistent performance showcases its potential to deliver sustained returns in the dynamic mid-cap segment.

20. UTI-Mid Cap Fund – Direct Growth:

Minimum SIP Investment Amount: ₹5,000
AUM (Cr.): ₹8,973
3-Year Return: 20.3%

UTI-Mid Cap Fund, with a minimum SIP investment amount of ₹5,000 and an AUM of ₹8,973 Crores, has demonstrated its strength over a 3-year period with a 20.3% return. This performance reflects the fund’s ability to navigate market cycles and provide investors with stable growth in the mid-cap space.

21. HDFC Mid-Cap Opportunities Fund – Direct Growth:

Minimum SIP Investment Amount: ₹100
AUM (Cr.): ₹48,686
3-Year Return: 32.9%

HDFC Mid-Cap Opportunities Fund, with a minimum SIP investment amount of ₹100 and an AUM of ₹48,686 Crores, has showcased its resilience and growth potential over a 3-year period with an impressive 32.9% return. The fund’s consistent performance underlines its capacity to generate sustained returns for investors seeking exposure to the mid-cap segment.

22. SBI Magnum Midcap Fund – Direct Growth:

Minimum SIP Investment Amount: ₹5,000
AUM (Cr.): ₹13,244
3-Year Return: 21.5%

SBI Magnum Midcap Fund, with a minimum SIP investment amount of ₹5,000 and an AUM of ₹13,244 Crores, has displayed its ability to navigate the mid-cap space over a 3-year period with a 21.5% return. The fund’s consistent performance highlights its potential to deliver stable and competitive returns for investors seeking growth in the mid-cap segment.

23. Nippon India Growth Fund – Direct Growth:

Minimum SIP Investment Amount: ₹100
AUM (Cr.): ₹19,247
3-Year Return: 32%

Nippon India Growth Fund, with a minimum SIP investment amount of ₹100 and an AUM of ₹19,247 Crores, has demonstrated its strength over a 3-year period with a notable 32% return. The fund’s consistent performance underscores its capacity to generate sustained returns for investors looking for long-term growth.

24. PGIM India Midcap Opportunities Fund – Dir Growth:

Minimum SIP Investment Amount: ₹5,000
AUM (Cr.): ₹9,342
3-Year Return: [Not available]

PGIM India Midcap Opportunities Fund, with a minimum SIP investment amount of ₹5,000 and an AUM of ₹9,342 Crores, has showcased its resilience and growth potential over a 3-year period. However, the 3-year return data is incomplete. Investors may want to consider this fund’s performance with additional information or seek advice from a financial advisor.

Who Should Invest in Mid-Cap Mutual Funds?

Mid-cap mutual funds cater to a specific investor profile and are suitable for individuals with a moderate risk appetite. These funds invest in mid-cap stocks, typically companies ranked between 101st and 250th in market capitalization. Investors willing to assume the associated risks can consider mid-cap funds, as they are characterized by their pure equity nature. The potential for significant long-term profits attracts those who prioritize growth and are undeterred by the inherent volatility of mid-cap companies.

Are Mid Cap Funds a Good Investment?

Mid-cap funds can be a lucrative investment for individuals seeking high growth potential and portfolio diversification. These funds often outperform large-cap counterparts over the long term, given the growth prospects of mid-sized companies. However, it’s essential to note that mid-cap funds come with a considerable level of risk due to their focus on securities with higher risk components. Investors must carefully weigh the potential rewards against the associated risks before deciding if mid-cap funds align with their financial objectives.

What Exactly is a Mid Cap?

A mid-cap, short for mid-capitalization, refers to companies with mid-sized market capitalizations. In the context of mutual funds, mid-cap funds specifically invest in stocks of such companies. These businesses fall within the range of 101st to 250th in terms of market capitalization. Mid-cap companies are positioned between small-cap and large-cap enterprises, offering a balance of growth potential and relative stability.

Is it Safe to Invest in a Mid Cap Mutual Fund?

Safety in mid-cap mutual funds is a nuanced consideration. While mid-cap funds have the potential for substantial returns, they are also exposed to higher volatility and market sensitivity. Investors should be aware that mid-cap stocks can be more susceptible to short-term market changes. The safety of investing in a mid-cap mutual fund depends on an individual’s risk tolerance, investment horizon, and ability to withstand market fluctuations.

How Much Capital Do I Need to Invest in Mid-Cap Funds?

One of the advantages of mid-cap funds is the accessibility of Systematic Investment Plans (SIPs), allowing investors to start with relatively small amounts. The minimum SIP investment amount can vary among funds, with some starting as low as ₹100 or ₹500. This flexibility makes mid-cap funds accessible to a broader range of investors, including those who prefer to start with a modest capital outlay.

Are Mid-Cap Funds Good for the Long Term?

Mid-cap funds are well-suited for long-term investors who are willing to stay invested over an extended period. The high growth potential of mid-cap companies can translate into significant returns over the long term. Investors with long investment horizons, such as those planning for retirement or a child’s education, may find mid-cap funds beneficial. However, it’s crucial to note that the suitability of mid-cap funds for the long term depends on individual financial goals and risk tolerance.

Factors to Consider While Investing in Mid-Cap Mutual Funds

Performance of Mutual Funds:

Evaluate historical performance over the last 5-7 years.
Compare fund performance to the category and benchmark.

Expense to Income Ratio:

Analyze the fund’s expense ratio and choose funds with lower expense ratios.

Taxation:

Understand the taxation of mid-cap funds, considering short-term and long-term capital gains.

Financial Objectives:

Consider mid-cap funds for long-term financial goals, not suitable for short-term objectives.

Age:

Evaluate your age and risk tolerance before investing in mid-cap funds.

Risk Comprehension:

Understand the market-sensitive nature of mid-cap funds and potential risks involved.

Direct or Regular Plan:

Choose between direct and regular plans based on preferences for commissions and expense ratios.

Taxability of Mid Cap Funds

Taxation on mid-cap mutual funds is essential to understand. These funds are categorized as equity-oriented mutual funds for tax purposes, as at least 65% of their net assets are invested in mid-size business equities. Short-term capital gains (STCG) from mutual fund units held for less than a year are taxed at 15%, while long-term capital gains (LTCG) for holdings beyond 12 months are taxed at 10%. Investors can benefit from an exemption of up to Rs. 1 lakh per year on LTCG for equity shares and equity-oriented mutual funds.

Risks Involved While Investing in Mid Cap Mutual Funds

Benchmarking Mid-Cap Funds Is Challenging:

Constructing an accurate mid-cap index for benchmarking is challenging due to the diverse nature of mid-cap companies.

Liquidity Risk Is a Concern:

Mid-cap stocks may face liquidity challenges, especially during market downturns, potentially resulting in significant losses for investors.

Volatility Near Market Peaks:

Mid-cap companies may experience heightened volatility, particularly when market valuations are high, exposing investors to price shocks.

Investors should carefully assess these factors and conduct thorough research or consult with financial advisors to make well-informed decisions when considering mid-cap mutual funds for their investment portfolios.