Are you looking to strike a balance between growth and stability in your mutual fund portfolio?
It’s time you diversify your investments with mid-cap funds. These mutual funds offer a high growth potential compared to large caps but carry comparatively high risks.
The top mid-cap funds returned an average of 20.62% to investors in the last three years. They invest in companies with the potential to become market leaders in the future. In this blog, we have curated a list of top mid-cap funds for you to choose from.
5 Best Mid-Cap Funds to Invest
Let’s take a look at the top-performing mid cap mutual funds that you might consider worth investing in.
1. Quant Mid Cap Fund
With a 5-year return of 40.50%, the Quant Mid Cap Fund tops our list. The agile investment strategy of the fund managers adapts to changing market trends. You can create an SIP starting from INR 1,000 per month or invest a minimum lump sum amount of INR 5,000 in this fund. The key sectoral allocations for this mid-cap fund are industrials, basic materials, consumer defensive, and energy.
- AUM: INR 7,615.71 crore
- NAV: INR 228.5638
- Expense ratio: 0.62%
- 1-Year return: – 0.05%
- 3-Year return: 20.49%
- 5-Year return: 40.50%
2. Motilal Oswal Mid Cap Fund
The Motilal Oswal Mid Cap Fund is a popular pick in this category, known for its focused approach to investment. The minimum amount required to create an SIP or invest a lump sum is INR 500. While it allocates as much as 34.02% of its assets to technology, some of the other sectors include consumer cyclical, industrials, and healthcare.
- AUM: INR 23,703.70 crore
- NAV: INR 105.9475
- Expense ratio: 0.68%
- 1-Year return: 22.12%
- 3-Year return: 29.81%
- 5-Year return: 39.17%
3. Edelweiss Mid Cap Fund
Edelweiss Mid Cap Fund is suitable for investors aiming to benefit from the rapid growth of mid-cap companies. You can create an SIP or invest in a lump sum with just INR 100. With a reasonably low expense ratio and a well-diversified portfolio, it appeals to investors with controlled aggression.
- AUM: INR 7,729.29 crore
- NAV: INR 104.5110
- Expense ratio: 0.41%
- 1-Year return: 21.30%
- 3-Year return: 24.51%
- 5-Year return: 37.86%
4. HDFC Mid Cap Opportunities Fund
HDFC Mid Cap Fund is noted for its bottom-up stock-picking strategy. Experienced fund managers identify mid-cap companies with strong management and consistent performance. Although its expense ratio looks high, this fund returned 36.68% to investors in the last 5 years. The HDFC Mid Cap Fund invests in sectors like financial services, consumer cyclical, healthcare, technology, and industrials.
- AUM: INR 67,578.60 crore
- NAV: INR 191.3500
- Expense ratio: 0.83%
- 1-Year return: 14.09%
- 3-Year return: 25.53%
- 5-Year return: 36.68%
5. SBI Magnum Mid Cap Fund
If you’re looking for a growth-oriented strategy to build wealth over the long term, the SBI Magnum Mid Cap Fund can be a suitable choice. The sector allocations look well-balanced across financial services, consumer cyclical, healthcare, and industrials, among others. The fund delivers stable long-term returns while managing risks effectively.
- AUM: INR 19,391.70
- NAV: INR 247.9604
- Expense ratio: 0.92%
- 1-Year return: 12.99%
- 3-Year return: 19.47%
- 5-Year return: 35.48%
Conclusion
Mid-cap funds are a suitable investment option for those looking to capitalize on emerging opportunities. We have mentioned the top funds in this category for investors. Prioritize your investment goals and risk tolerance while shaping your financial strategy. Create an SIP or invest lump sum in one of these funds, depending on your risk profile and expectations.