Investing in mutual funds, especially mid-cap funds, has proven to be a wealth-generating strategy for investors over the years. Some of these mid-cap funds have multiplied the money of their investors four to five times in the last five years, which is quite impressive. Let’s dive into these 7 top-performing mid-cap funds, but before that, let’s understand what makes mid-cap mutual funds unique.
What Are Mid-Cap Funds?
Mid-cap mutual funds primarily invest in companies that are medium-sized in terms of market capitalization. As per SEBI regulations, at least 65% of a mid-cap mutual fund’s investment must be in mid-cap stocks. These companies typically rank between 101st to 250th in market cap size. Mid-cap funds can be more volatile than large-cap funds but have greater growth potential, which can lead to substantial wealth creation over the long term.
Top 7 Mid Cap Mutual Funds With Stellar Returns
If you’re wondering how your investment could have grown with these funds, here’s a look at how ₹1 lakh invested five years ago would have grown today. These funds have given impressive returns, making them wealth multipliers for many investors.
1. Quant Mid Cap Fund (Direct Plan)
- 5-Year CAGR: 38.34%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹5,06,686
- AUM: ₹9,375.74 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
The Quant Mid Cap Fund stands at the top, delivering the highest returns in the category with over 5 times the initial investment.
2. Motilal Oswal Midcap Fund (Direct Plan)
- 5-Year CAGR: 34.17%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹4,34,788
- AUM: ₹18,402.48 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
Motilal Oswal Midcap Fund is another strong performer, turning ₹1 lakh into ₹4.34 lakh in five years.
3. Edelweiss Mid Cap Fund (Direct Plan)
- 5-Year CAGR: 33.08%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹4,17,411
- AUM: ₹7,846.44 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
The Edelweiss Mid Cap Fund is third on this list, delivering solid returns while managing a large corpus of ₹7,846 crores.
4. PGIM India Midcap Opportunities Fund (Direct Plan)
- 5-Year CAGR: 33.00%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹4,16,158
- AUM: ₹11,844.92 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
With a 33% CAGR, PGIM India’s mid-cap fund has significantly grown investors’ wealth.
5. Mahindra Manulife Mid Cap Fund (Direct Plan)
- 5-Year CAGR: 32.23%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹4,04,250
- AUM: ₹3,451.36 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
Mahindra Manulife’s mid-cap fund offers consistent growth with lower AUM, making it a strong option for investors seeking stability and returns.
6. Nippon India Growth Fund (Direct Plan)
- 5-Year CAGR: 32.05%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹4,01,506
- AUM: ₹35,361.39 crore
- Benchmark: NIFTY Midcap 150 Total Return Index
Nippon India Growth Fund has consistently been one of the most trusted mid-cap funds, providing reliable returns over the years.
7. Invesco India Mid Cap Fund (Direct Plan)
- 5-Year CAGR: 31.45%
- Investment 5 Years Ago: ₹1,00,000
- Value Today: ₹3,92,467
- AUM: ₹6,000.32 crore
- Benchmark: BSE 150 MidCap Total Return Index
Invesco’s mid-cap fund also made the list, with returns nearly quadrupling investors’ money over five years.
Understanding the Risks
While these funds have delivered impressive returns, it’s important to note that all of them fall under the “very high risk” category. As mid-cap stocks are more volatile than large caps, they tend to have larger swings in value. While the potential for high returns is appealing, these funds are better suited for investors with a higher risk tolerance and a long-term investment horizon.
Should You Invest in Mid Cap Funds?
The past performance of these mid-cap mutual funds shows their potential for wealth creation, but investors should make decisions carefully. The key to investing in these funds lies in understanding your risk profile and investment goals. If you’re looking for aggressive growth over the long term and are prepared for market volatility, mid-cap funds can be a good addition to your portfolio.
Keep in mind, however, that past returns are not indicative of future performance. Always consult with a financial advisor or perform thorough research before making any investment decisions.
By considering these factors, investors can make informed choices about whether mid-cap mutual funds align with their financial goals.
