Midcap mutual funds have quietly become a wealth-making option for long-term investors in India. These funds invest mainly in companies that are neither too small nor too large. These mid-sized companies often have more growth potential than large-cap firms and carry less risk than small-cap ones. Many investors prefer midcap funds for wealth creation over 7–10 years.
In the last 10 years, some midcap mutual funds have performed so well that they turned a Rs. 1 lakh lump sum investment into more than Rs. 5 lakh. These schemes delivered annual returns of over 18%, which is far better than fixed deposits, large-cap funds, and even gold during the same period.
Let’s look at five top-performing midcap mutual funds that turned small savings into significant gains.
1. Motilal Oswal Midcap Fund: Grew Rs. 1 Lakh to Rs. 5.84 Lakh in 10 Years
Motilal Oswal Midcap Fund tops the list. This fund has delivered an impressive annual return of 19.30% over the last 10 years. An investment of Rs. 1 lakh in 2015 has grown to Rs. 5.84 lakh by April 2025.
- Return (10 Years): 19.30% annually
- Final Value: Rs. 5,83,989
- Profit Gained: Rs. 4,83,989
- Assets Under Management (AUM): Rs. 27,780 crore
- Expense Ratio: 0.70% (Direct Plan)
- SIP Return (10 Years): 22.61% annually
- Star Rating (Value Research): 5 stars
The fund has mainly invested in strong midcap companies with long-term growth potential. It rewards patient investors who stay invested through market ups and downs.
2. Edelweiss Midcap Fund: Rs. 1 Lakh Became Rs. 5.81 Lakh
Edelweiss Midcap Fund also performed exceptionally well. It delivered 19.24% annual returns over 10 years. A one-time investment of Rs. 1 lakh has now become Rs. 5.81 lakh.
- Return (10 Years): 19.24% annually
- Final Value: Rs. 5,81,058
- Profit Gained: Rs. 4,81,058
- AUM: Rs. 9,242 crore
- Expense Ratio: 0.40% (Direct Plan)
- SIP Return (10 Years): 21.93% annually
- Star Rating (Value Research): 4 stars
With one of the lowest expense ratios among midcap funds, this scheme managed costs well and focused on quality midcap stocks.
3. Invesco India Midcap Fund: Rs. 1 Lakh Became Rs. 5.75 Lakh
Invesco India Midcap Fund gave 19.12% annual returns in 10 years. Those who invested Rs. 1 lakh in this fund a decade ago are now looking at a value of Rs. 5.75 lakh.
- Return (10 Years): 19.12% annually
- Final Value: Rs. 5,75,237
- Profit Gained: Rs. 4,75,237
- AUM: Rs. 6,047 crore
- Expense Ratio: 0.65% (Direct Plan)
- SIP Return (10 Years): 21.46% annually
- Star Rating (Value Research): 4 stars
This fund maintains a diversified midcap portfolio, which has helped it navigate market volatility while continuing to deliver good long-term performance.
4. Kotak Emerging Equity Fund: Rs. 1 Lakh Became Rs. 5.65 Lakh
Kotak Emerging Equity Fund has maintained a steady performance with 18.90% average yearly returns in the last 10 years. A Rs. 1 lakh investment made 10 years ago is now worth Rs. 5.65 lakh.
- Return (10 Years): 18.90% annually
- Final Value: Rs. 5,64,701
- Profit Gained: Rs. 4,64,701
- AUM: Rs. 49,646 crore
- Expense Ratio: 0.44% (Direct Plan)
- SIP Return (10 Years): 20.38% annually
- Star Rating (Value Research): 4 stars
This is one of India’s most significant midcap funds and has delivered consistent returns by investing in high-potential sectors and emerging businesses.
5. HDFC Mid-Cap Opportunities Fund: Gained Rs. 4.44 Lakh Profit
HDFC Mid-Cap Opportunities Fund rewarded long-term investors with 18.45% annual returns. A Rs. 1 lakh investment made a decade ago has grown to Rs. 5.44 lakh.
- Return (10 Years): 18.45% annually
- Final Value: Rs. 5,43,689
- Profit Gained: Rs. 4,43,689
- AUM: Rs. 74,910 crore
- Expense Ratio: 0.79% (Direct Plan)
- SIP Return (10 Years): 20.62% annually
- Star Rating (Value Research): 5 stars
This is one of the most trusted names in the midcap segment and has consistently stayed on the top performer list due to its innovative stock-picking approach.
Why Midcap Funds Did So Well
These five funds have shown that midcap companies in India have delivered strong earnings and business growth over the last 10 years. The mutual funds that invested in the right midcap stocks and stayed consistent with their investment style saw excellent returns.
Most of these funds also kept their expense ratios low, which helped maximize investor gains. Also, the size of the funds (AUM) shows that more investors have shown confidence in them, giving fund managers more flexibility in handling market challenges.
A Quick Comparison Table
| Fund Name | Annual Return (10 Years) | ₹1 Lakh Became | Expense Ratio | AUM (₹ Cr) | Rating |
| Motilal Oswal Midcap Fund | 19.30% | ₹5.84 Lakh | 0.70% | 27,780 | ★★★★★ |
| Edelweiss Midcap Fund | 19.24% | ₹5.81 Lakh | 0.40% | 9,242 | ★★★★ |
| Invesco India Midcap Fund | 19.12% | ₹5.75 Lakh | 0.65% | 6,047 | ★★★★ |
| Kotak Emerging Equity Fund | 18.90% | ₹5.65 Lakh | 0.44% | 49,646 | ★★★★ |
| HDFC Mid-Cap Opportunities Fund | 18.45% | ₹5.44 Lakh | 0.79% | 74,910 | ★★★★★ |
Disclaimer: Mutual fund investments are subject to market risks. Past performance is not a guarantee of future results. Please consult a financial advisor before investing.
Source: Value Research, Financial Express
