Best Mid Cap Funds
3Yr. Returns
5Yr. Returns
 

Best Mid-Cap Mutual Funds 2019 – Top 10 Performing Mid-Cap Funds

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Mid-cap mutual funds aim at generating returns which beat the benchmark when the markets play well. They are much riskier than large-cap mutual funds due to high volatility.

1. What are Mid-Cap Mutual Funds?

Mid-cap mutual funds, as the names suggest, invest in stocks of the mid-sized companies or stocks with medium market capitalisations. In this context, the word ‘cap’ refers to the market capitalisation or size of the listed company. For mid-cap, the market capitalisation ranges between Rs 500 crore to Rs 10,000 crore. A company’s size is an essential criterion while selecting equity portfolios because depending on the size of the company, the portfolio would have its unique set of opportunities and risks.

Since these funds are invested in mid-cap companies, during a bull run, they deliver stupendous returns, sometimes even outperforming large-cap funds or diversified equity funds. This happens because, during a bull market, the underlying stocks in the funds are able to unlock their values and tap into the growth opportunities.

2. Who Should Invest in Mid-Cap Mutual Funds?

Investors who are looking for faster growth and have an appetite for a high-risk can invest in mid-cap funds. Mid-sized companies provide faster earnings and steep growth while being volatile on the stock index. Investors who are ready to face volatility of these stocks in expectations of fascinating returns can invest in these funds.

3. Advantages of Mid-Cap Mutual Funds

Mid-cap funds have generally outperformed large-cap funds. The very nature of the mid-cap funds makes the trend to continue for quite some time.

The mid-cap funds are relatively underfollowed in stock markets as compared to large-cap funds. This provides investors with an excellent opportunity to seek fast growth in their investments using these funds.

4. Things an Investor Should Consider

Though mid-cap funds perform very well in bull runs, their value takes quite a beating when the market sentiment is dropping. Also, in the case of high-quality stocks, mid-cap funds are not appropriate since they have a higher risk factor involved. Mid-cap stocks suffer from liquidity constraints due to their smaller capital base i.e. the number of shares offered by the company.

Since the underlying shares are characterised by lower market capitalisation and limited liquidity, these funds tend to follow cycles of boom and dip. This is based on the mirroring of the stock indices in general.
The performance of mid-cap funds is mentioned below for the year 2017.

Rise of small- and mid-cap funds

 

2017 Returns

Sensex

27.90%

BSE

35.90%

Large Cap funds

32.50%

Midcap Funds

45.60%

Small-cap funds

57.90%

Based on CRISIL ranking and fund performance indicator values, which were discussed above, the top equity funds are listed below. Here, the ranking is done for a consolidated list of mid-cap equity funds (including all above categories) on a 1-year return basis. Please note that the table represents only direct funds. However, as per the SEBI mandate, each of these funds has its regular fund type with a higher expense ratio.

Midcap Mutual Fund

Rating

Category

Expense Ratio (%)

1-Year Return (%)

1-Year Rank

Net Assets (Cr)

Aditya Birla Sun Life Pure Value Fund – Direct Plan

* * * * *

EQ-MC

1.05

27.97

1

3263.16

Mirae Asset Emerging Bluechip Fund – Direct Plan

* * * * *

EQ-MC

1.64

20.68

2

5131.36

L&T Midcap Fund – Direct Plan

* * * * *

EQ-MC

1.55

26.74

3

2312.67

Edelweiss Mid and Small-Cap Fund – Direct Plan

* * * *

EQ-MC

1.04

30.7

4

652.7

Canara Robeco Emerging Equities Fund – Direct Plan

* * * * *

EQ-MC

0.9

25.19

5

3235.23

Escorts High Yield Equity Fund – Direct Plan

* * * *

EQ-MC

11.7

6

7.33

Principal Emerging Bluechip Fund – Direct Plan

* * * * *

EQ-MC

0.63

24.69

7

1666.11

L&T India Value Fund – Direct Plan

* * * * *

EQ-MC

1.4

20.06

8

7405.6

Sundaram Select Midcap Fund – Direct Plan

* * * *

EQ-MC

1.58

18.75

9

6256.31

BNP Paribas Midcap Fund – Direct Plan

* * * *

EQ-MC

0.91

19.65

10

813.78

(Based on CRISIL and Value-Research reports across multiple indicators)*

 

Midcap Mutual Fund

3-Year Return(%)

5-Year Return(%)

L&T Midcap Fund-Reg(G)

18.26%

29.03%

Aditya Birla SL Pure Value Fund(G)

17.62%

28.20%

DSPBR Mid-cap Fund-Reg(G)

16.77%

25.68%

Kotak Emerging Equity Scheme(G)

15.34%

26.16%

HDFC Mid-Cap Opportunities Fund(G)

14.84%

26.00%

UTI Mid-Cap Fund-Reg(G)

11.17%

26.10%

*This is a representative list based on key metrics. It does not serve as a recommendation of funds nor does it claim to the only correct way to rank funds.