Get Best Mid Cap Funds for Your Portfolio

As we move into 2024, savvy investors are keenly eyeing mid cap mutual funds for their potential to offer high returns. Mid cap funds invest in medium-sized companies that have surpassed the volatile startup phase but still possess significant growth potential. This article delves into the best mid cap mutual funds for 2024, offering insights into why they might be the ideal addition to your investment portfolio.

What are Mid Cap Mutual Funds?

Midcap Funds are those mutual funds that invest a larger portion of their funds in equity shares of mid-cap companies. These funds focus on companies with a market capitalization between $2 billion and $10 billion. These companies are larger than small caps but smaller than large caps, offering a blend of growth potential and relative stability. Mid cap funds are particularly appealing to investors looking for a balance between risk and return.

The Securities & Exchange Board of India or SEBI categorises companies whose market capitalization is between the 101st and 250th position in the market as Mid Cap. Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.

TOP MID-CAP FUNDS 2024

We'll introduce you to the top mid-cap funds poised to shine in the coming year, providing you with valuable insights to elevate your investment strategy. Join us on this journey to explore promising opportunities and make informed decisions.

List of Latest Best Mid-Cap Mutual Funds

AMC	1 Year	3 Years	5 Years
DSP Mid Cap Fund	18.65%	20.19%	15.59%
Nippon India Growth Fund	24.56%	32.44%	20.41%
Edelweiss Mid Cap Fund	18.25%	31.58%	20.33%
HSBC Mid Cap	19.99%	21.83%	13.02%
Axis Midcap Fund	12.66%	22.69%	17.13%
Invesco India Mid Cap Fund	20.89%	25.57%	17.31%
BNP Paribas Mid Cap Fund	20.22%	29.57%	19.13%
UTI Mid Cap Fund	16.98%	27.11%	17.45%
HDFC Mid-Cap Opportunities Fund	29,52%	33.05%	18.78%
Tata Mid Cap Fund	23.12%	28.94%	19.94%

Watch the Best Mid Cap Mutual Funds Video Here : 

Video: https://www.youtube.com/embed/JSSgWybtWwY?si=oEabhk1EULhd785z

Top Mid-Cap Fund in 2024 Details Analysis - 

⤘ 1.) DSP Mid Cap Fund - Best MID-CAP FUNDS

DSP midcap fund is the top-performing fund in the Mid Cap category. DSP Midcap has been consistently beating the returns of its benchmark & category average by significant margins over a long period of time.

The Mutual fund has been one of the top performers in metrics like performance against benchmark, capture ratio, & risk-adjusted score. Also, the fund has a decent score in valuations.

An excellent choice for long-term investment in the category. It has a small exposure of 9.70% in small-cap stocks.

• ₹10,000 invested in December 2015 would have been approx. ₹18,200.
• ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹84,100

⤘ 2.) Nippon India Growth Fund - Best MID-CAP FUNDS

Nippon India Growth Fund is one of the top-performing funds in the category of mid-cap funds. It has consistently outperformed the benchmark and has given higher returns.

Nippon India Growth Fund has a good score in the performance against benchmark, capture ratio, and concentration score as per the ZFunds ratings.

Nippon India Growth Fund also gives a small exposure to small and large-cap stocks of approx 15% and 12% respectively.

• ₹10,000 invested in December 2015 would have been approx. ₹16,800.
• ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹82,400.

⤘ 3.) Edelweiss Mid Cap Fund - Best MID-CAP FUNDS

Edelweiss Mid Cap fund is among the top 3 funds in the category as it has consistently outperformed its benchmark. It has good scores in the parameters of valuation, volatility, and capture ratio as per the ZFunds ratings.

Edelweiss Mid Cap Fund also has a small exposure of 13% to small-cap companies.

Edelweiss Mid Cap Fund can be a good choice of investment for the long term.

• ₹10,000 invested in December 2015 would have been approx. ₹16,800.
• ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹82,400.

⤘ 4.) L&T Mid Cap Fund - Best MID-CAP FUNDS 

L&T Mid Cap Fund is in the list of top 10 funds in the category of mid-cap funds as it has delivered high returns in the past and has the ability to do well in the coming years.

It has a good score in the capture ratio and consistency as per the ZFunds ratings.

L&T Mid Cap Fund has also invested its 12% of assets in small-cap stocks, so it has an exposure to small-cap companies as well.

L&T Mid Cap Fund has also ranked high in the metric of volatility as per ZFunds ratings. The Fund has the potential to provide high returns over a long period.

• ₹10,000 invested in December 2015 would have been approx. ₹16,900.
• ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹78,500.

⤘ 5.) Axis Mid Cap Fund - Best MID-CAP FUNDS 

Video: https://www.youtube.com/embed/FWAhv6aTE5M?si=jmF7pXzca7SspDZ

A Top-performing fund, Axis Midcap Fund has been a consistent performer since its inception.

The Axis Midcap Growth fund has been ranked as the top performer in various parameters like performance against benchmark, capture ratio, and risk-adjusted score as per ZFunds Ratings.

The fund has always been outperforming its benchmark as well as the category average returns by significant margins over the long as well as short periods.

An excellent fund for long-term investments, it has a small exposure of 2.30% in Small-cap stocks.

• ₹10,000 invested in December 2015 would have been approx. Rs.19,300.
• ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹91,700

⤘ 6.) Quant Mid Cap Fund - Growth Option - Regular Plan - Best MID-CAP FUNDS

Quant Mid Cap Fund holds a consistent track record of outperforming benchmarks, making it an attractive choice for investors seeking reliable returns. The fund's performance ratings are strong, reflecting its ability to deliver consistent results over time. Notable features include:

• Diversified portfolio with a balanced allocation of 10.50% to small-cap stocks.
• Remarkable growth journey: An investment of ₹10,000 in December 2015 would have grown to approximately ₹19,500.
• Systematic Investment Plan (SIP) success: An SIP of ₹1,000 per month since January 2016 would now be valued around ₹86,700.

⤘ 7.) PGIM India Midcap Opportunities Fund - Regular Plan - Growth Option - Best MID-CAP FUNDS 

The PGIM India Midcap Opportunities Fund has proven its ability to consistently outperform benchmarks, indicating strong potential for sustained growth. Key highlights include:

• Balanced portfolio allocation: ~14% to small-cap stocks and ~13% to large-cap stocks.
• Substantial growth over time: An investment of ₹10,000 in December 2015 would have grown to approximately ₹17,400.
• Effective SIP strategy: An SIP of ₹1,000 per month since January 2016 would now be valued around ₹83,900.

⤘ 8.) Motilal Oswal Midcap Fund - Regular Plan - Growth Option - Best MID-CAP FUNDS 

With a solid track record of consistently beating benchmarks, the Motilal Oswal Midcap Fund offers investors an opportunity for steady growth. Noteworthy features include:

• Balanced allocation: ~12% to both small-cap and large-cap stocks.
• Progressive growth trajectory: An investment of ₹10,000 in December 2015 would have grown to approximately ₹16,600.
• Effective SIP approach: An SIP of ₹1,000 per month since January 2016 would now be valued at around ₹82,000.

Motilal Oswal Midcap Fund

Watch Motilal Oswal Midcap Fund

⤘ 9.) Kotak Emerging Equity Scheme - Growth - Best MID-CAP FUNDS 

The Kotak Emerging Equity Scheme stands out as a consistent performer, consistently surpassing benchmarks and showcasing strong performance scores. Highlights include:

• Balanced allocation strategy: ~15% to small-cap stocks and ~10% to large-cap stocks.
• Notable growth achievements: An investment of ₹10,000 in December 2015 would have grown to approximately ₹17,200.
• SIP success: An SIP of ₹1,000 per month since January 2016 would now be valued at around ₹81,600.

⤘ 10.) SBI Magnum Midcap Fund - Regular Plan - Growth Option - Best MID-CAP FUNDS

 The SBI Magnum Midcap Fund has consistently exceeded benchmarks, making it an attractive option for investors seeking above-average returns. Notable features include:

• Effective allocation strategy: ~13% to small-cap stocks and ~11% to large-cap stocks.
• Steady growth trajectory: An investment of ₹10,000 in December 2015 would have grown to approximately ₹16,500.
• Favorable SIP outcomes: An SIP of ₹1,000 per month since January 2016 would now be valued at around ₹81,300.

SBI Magnum Midcap Fund

⤘ 11.) HDFC Mid-Cap Opportunities Fund-Growth Plan - Best MID-CAP FUNDS 

The HDFC Mid-Cap Opportunities Fund showcases a history of consistent benchmark outperformance, reflecting its potential for solid returns. Key features include:

• Balanced portfolio approach: ~11% to small-cap stocks and ~14% to large-cap stocks.
• Noteworthy growth journey: An investment of ₹10,000 in December 2015 would have grown to approximately ₹17,100.
• Successful SIP approach: An SIP of ₹1,000 per month since January 2016 would now be valued around ₹82,300.

Why Invest in Mid-Cap Mutual Funds?

Investing in mid-cap mutual funds can offer several advantages to investors. Before you go investing in the best mid-cap mutual funds on ZFunds, let us check out some reasons why investing in mid-cap mutual funds can be a great bet:

➥ Growth Potential: Mid-cap companies are usually in their growth phase and have the potential to grow faster than large-cap companies and their stocks. Investing in mid-cap mutual funds can provide investors with exposure to these growth companies and potentially generate higher returns over the long term.

➥ Diversification: Mid-cap equity mutual funds offer diversification benefits as they invest in a portfolio of stocks of mid-sized companies from different sectors and industries. This diversification can help reduce risk and volatility, making it a suitable investment option for investors with a moderate risk appetite.

➥ Undervalued Stocks: Mid-cap companies are often overlooked by investors and analysts, resulting in undervalued stocks. Skilled fund managers of mid-cap mutual funds can identify these undervalued stocks and invest in them at lower valuations. When the market recognizes the true potential of these stocks, their prices can appreciate significantly, resulting in higher returns for investors.

➥ Long-term Investment Horizon: Investing in mid-cap mutual funds, such as Axis mid-cap mutual fund, requires a long-term investment horizon, as these companies need time to grow and realize their full potential. Investors with a long-term investment horizon can benefit from the potential growth opportunities of these companies and generate higher returns.

➥ Active Management: Mid-cap mutual funds like Quant mid-cap fund are actively managed by skilled fund managers who have the expertise and experience to identify mid-cap companies with growth potential. These fund managers conduct in-depth research and analysis before investing in stocks, ensuring that the portfolio is well-diversified and balanced.

You can find Axis, HDFC, SBI, Quant, and Mirae Asset mutual focus funds on ZFunds and start your investment journey today. We have a team of experts who can help you pick the best mid-cap mutual funds as per your financial goals and risk appetite. So, get in touch with our experts right away.  

Some of the characteristics of a midcap fund are as follows:

• Higher chances of growth compared to large caps
• Chances of getting outperformed by large caps in a weak economy.
• Chances of getting outperformed by small caps in a strong economy.
• Lower volatility compared to small caps, but higher compared to large caps.
• Suitable for investors with high investment horizon
• Suitable for investors with medium risk appetite
• Most of the stocks are highly liquid

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How do I choose a mid-cap fund?

Choosing a mid-cap fund involves careful consideration to align your investment goals and risk tolerance. Here's a simple guide to help you choose a mid-cap fund:

➥ Understand Your Goals: Clarify your investment objectives, such as saving for retirement, buying a home, or funding education. Your goals will guide your investment decisions.

➥ Research: Look up mid-cap funds offered by various mutual fund companies. Websites like Value Research and Morningstar can provide insights into fund performance.

➥ Performance History: Check the fund's historical performance over different time periods and market cycles. Focus on consistent performance rather than short-term spikes.

➥ Risk Tolerance: Evaluate your comfort level with risk. Mid-cap funds can be more volatile than large-cap funds, so ensure the risk aligns with your tolerance.

➥ Fund Manager: Research the fund manager's track record and experience. A skilled manager can influence fund performance.

➥ Expense Ratio: Compare the expense ratios of different funds. Lower expenses can contribute to better returns over time.

➥ Consistency: Look for funds that have shown consistency in delivering returns and managing risks.

➥ Portfolio Composition: Examine the fund's portfolio holdings. Diversification across sectors and stocks is important for managing risk.

➥ Fund House Reputation: Choose funds from reputable and well-established fund houses known for their transparency and ethical practices.

➥ Fund Size: While not a decisive factor, funds with moderate assets under management might be easier to manage effectively.

➥ Investment Philosophy: Understand the fund's investment approach. Some funds might focus on growth, while others could be value-oriented.

➥ Long-Term Approach: Consider a long-term investment horizon. Mid-cap funds can benefit from compounding over time.

➥ Past Performance Disclaimer: Keep in mind that past performance is not a guarantee of future results. Market conditions can change.

➥ Professional Advice: If unsure, consider seeking guidance from a financial advisor who can recommend funds that suit your specific needs.
 

Taxation on Mid Cap Mutual Fund Investments  

Returns from mi cap mutual fund investments are categorized as short-term and long-term capital gains. Tax rules for both of these are explained in detail below:  

➥ Short-Term Capital Gains: STCG or short-term capital gains are applicable when the investor sells mutual funds within 12 months or one year from the date of purchase. Regardless of the total capital returns, short-term capital gains are taxed at 15 percent.  

➥ Long-Term Capital Gains: In case the investor holds mutual fund units for a period of more than 12 months or one year from the date of purchase before selling, then the returns are termed as long-term capital gains or LTCG. Long-term capital gains of up to INR 1,00,000 in a financial year are exempted from tax. Any surplus returns attract 10 percent tax.  

Why Choose ZFunds for your Mid Cap Mutual Fund Investments?

ZFunds’ experts make your mutual fund investments Sahi and Asaan, and help you maximize your returns and minimize the risk. We are unlike any other mutual fund investment platform in India, and here’s why:  

➥Expert Research Team – We have a team of mutual fund experts who help our clients pick the top-performing large, mid, and small-cap mutual funds. 

➥Certified Experts – All our experts are certified and trained so you can rest assured about getting the best mutual fund investment advice.  

➥ Hassle-free Investment Process – Our paperless KYC process and registration for SIP makes investing in mutual fund schemes more convenient than ever.  

How to Invest in the Best Mid Cap Mutual Funds on ZFunds?

 ➥Create an Account:

If you're new to ZFunds, start by creating an account on the platform. Provide the required information to set up your profile.

➥Log In to Your Account:

Use your registered credentials to log in to your ZFunds account.

➥Navigate to the Mid Cap Mutual Funds Section:

Once logged in, explore the platform's menu to locate the section dedicated to mid-cap mutual funds.

➥Browse Available Funds:

Browse through the list of available mid-cap mutual funds. ZFunds offers a range of funds from reputable fund houses.

➥Research and Compare:

• Click on individual funds to access detailed information. Review the fund's performance history, returns, risk profile, and other relevant data.
• Compare multiple funds to make an informed decision.

➥Select Your Fund:

Choose the mid-cap mutual fund that aligns with your investment goals, risk tolerance, and preferences.

➥Initiate Investment:

Click on the "Invest Now" or similar option provided for the selected fund.

➥Provide Investment Details:

Enter the investment amount you wish to allocate to the fund. Some funds might offer options like lump sum or Systematic Investment Plan (SIP).

➥Complete Documentation:

Provide any necessary documentation or details required for the investment, such as Know Your Customer (KYC) information.

➥Review and Confirm:

Double-check all the provided details and confirm your investment. You might need to review and accept the fund's terms and conditions.

➥Payment and Processing:

Choose your preferred payment method and complete the payment process.

➥Confirmation and Tracking:

Once the payment is processed, you'll receive a confirmation of your investment. The invested amount will reflect in your fund portfolio.

Faqs:

Q. Is midcap good for the long term?

A. Yes, mid-cap investments can be good for the long term, as they have the potential for higher growth compared to large-caps. However, they also come with higher risk and volatility, so it's important to have a longer investment horizon and a higher risk tolerance when considering mid-cap investments for the long term.

Q. Is it good to invest in mid-cap funds?

A. Investing in mid-cap funds can be beneficial due to their potential for higher growth, but they also come with higher risk and volatility. Consider your risk tolerance and investment horizon before making a decision.

Q. Can I invest in 2 mid-cap mutual funds?

A. Yes, you can invest in 2 mid-cap mutual funds to diversify your investments and potentially balance risk and returns.

Q. How do I choose the best mid-cap mutual fund for my portfolio?

To select the best mid-cap mutual fund, consider factors like historical performance, fund manager expertise, expense ratio, and your investment goals. It's essential to review the fund's prospectus and assess its alignment with your financial objectives.

Q. What are the advantages of investing in mid-cap mutual funds?

Investing in mid-cap mutual funds can provide the potential for higher returns than large-cap funds while maintaining a more moderate level of risk compared to small-cap funds. They offer diversification and exposure to mid-sized companies with growth potential.

Q. Are Mid Cap Mutual Funds Suitable for Long-Term Investment?

Yes, mid-cap mutual funds can be suitable for long-term investment goals like retirement planning. We'll explore the reasons behind this and provide insights on how to build a long-term portfolio with the best mid-cap funds.