Midcap funds invest in stocks and equity options of mid-sized companies, which are positioned between small-cap and large-cap firms.
These funds often provide higher returns than large-cap funds, making them attractive to investors.
Although midcap funds can be more volatile than large-cap funds, they are generally more stable than small-cap funds.
While the returns may not be as high as those from small-cap funds, midcap funds offer a balanced combination of risk and reward.
Top Performing Midcap Funds
Quant Mid Cap Fund
leads the pack among funds with the highest returns over the past five years.
By the end of July 31, 2024, its total assets were Rs 9,282.92 crore, with an expense ratio of 1.73%.
This fund has delivered a remarkable absolute return of 376.58% on lump sum investments over five years, and a 153% return on SIP investments in the same period.
Motilal Oswal Midcap Fund
has also performed well, with an annual return of 33.39% on lump sum investments over five years, resulting in an absolute return of 322.94%.
For SIP investments, the annual return has been 39.09%, with an absolute return of 158.56%.
The fund had total assets of Rs 14,445.55 crore as of July 31, 2024, with an expense ratio of 1.69%.
PGIM India Midcap Opportunities Fund
has given strong returns as well, with an annual return of 31.03% on lump sum investments over five years and an absolute return of 286.78%.
For SIP investments, the annual return was 27.39%, with an absolute return of 96.57%.
The fund’s total assets reached Rs 11,268.06 crore by July 31, 2024.
Other Notable Midcap Funds
Mahindra Manulife Mid Cap Fund
has provided an annual return of 30.53% and an absolute return of 279.50% on lump sum investments over five years.
For SIP investments, the annual return was 33.86%, with an absolute return of 129.03%.
By July 31, 2024, the fund’s total assets were Rs 3,165.98 crore.
Nippon India Growth Fund
has also delivered good returns, with an annualized return of 30.61% on lump sum investments over five years, resulting in an absolute return of 280.68%.
For SIP investments, the annualized return was 34.19%, with an absolute return of 130.82%.
The fund’s total assets stood at Rs 32,970.78 crore as of July 31, 2024.
