The best mid cap fund returned about 20% a year over the five years to 28 September 2026, and six of the seven funds compared here beat the Nifty Midcap 150 TRI (15.28%). Expect deep falls on the way: the index dropped 38.5% in 2020 and 20.9% in 2024–25. This guide compares the best mid cap mutual funds in India using AMFI data, and shows what the category has been through in bad markets.
What Is a Mid Cap Fund?
A mid cap fund must keep at least 65% of its money in companies ranked 101st to 250th by market value. AMFI publishes the ranking every six months. These companies are past the early stage but are not yet among India's 100 largest.
A flexi cap fund, by contrast, can hold as much or as little in mid caps as the manager likes. A dedicated mid cap fund gives you steady exposure to this segment. See large cap vs mid cap vs flexi cap.
How Risky Are Mid Caps?
- 2020: the Nifty Midcap 150 TRI (total return index, including dividends) fell 36.9% in one month (24 February to 23 March 2020), and 38.5% from peak to trough. It then rose about 181% from the low by the end of 2021.
- September 2024 to March 2025: it fell 20.9%, against 15.4% for the Nifty 50 TRI.
- Long run: over the 10 years to 28 September 2026, it returned 16.49% a year, against 11.38% for the Nifty 50 TRI.
So plan for falls of 20–40% at some point, and hold for at least 5–7 years.
Mid Cap Funds Compared
The top five funds by 5-year return, plus two widely held funds, sorted by 5-year return.
| Fund (Direct, Growth) | 3 years (a year) | 5 years (a year) | 5-year rank (of 22) | Expense ratio | AUM (₹ Cr) |
|---|---|---|---|---|---|
| Motilal Oswal Midcap | 17.65% | 20.36% | 1 | 0.93% | 42,852 |
| Invesco India Mid Cap | 22.73% | 19.26% | 2 | 0.78% | 15,905 |
| HDFC Mid Cap | 15.99% | 18.13% | 3 | 0.76% | 1,08,325 |
| Edelweiss Mid Cap | 19.55% | 17.99% | 4 | 0.68% | 19,891 |
| Nippon India Growth Mid Cap | 17.18% | 17.39% | 5 | 0.79% | 52,271 |
| Kotak Mid Cap | 16.33% | 16.12% | 9 | 0.54% | 71,256 |
| Axis Midcap | 15.53% | 12.77% | 17 | 0.84% | 35,425 |
| Nifty Midcap 150 TRI (reference) | 14.44% | 15.28% | — | — | — |
Returns calculated from AMFI NAVs to 28 September 2026. Expense ratio is the total including statutory levies: Motilal from its August 2026 factsheet, others from Groww (22–28 September 2026). AUM from the Motilal factsheet (31 August 2026) and Groww (latest, fetched 29 September 2026). HDFC Mid-Cap Opportunities was renamed HDFC Mid Cap Fund on 27 June 2025, and Kotak Emerging Equity became Kotak Mid Cap Fund on 28 June 2025.
What the table tells you
- Returns are lower than many older lists show. The best mid cap fund returned about 20% a year over five years, not 30%+. Five-year figures to 31 August 2026 were about 1.5–3 points higher, because markets fell in September. Always check the date.
- Rankings are fragile. Mahindra Manulife Mid Cap (17.26%) sits just 0.13 points behind fifth place.
- Not every fund beats the index. Six of these seven beat the Nifty Midcap 150 TRI (15.28%) over five years. Axis Midcap (12.77%) trailed it by about 2.5 points a year.
- Recent 3-year leaders differ. Invesco and Edelweiss lead over three years; Motilal leads over five.
Motilal Oswal Midcap: concentrated
Motilal Oswal Midcap ranks first of 22 funds over five years. It is also concentrated: at 31 August 2026 its top three holdings (One 97 Communications 9.1%, Kalyan Jewellers 8.1% and Eternal 6.5%) made up 23.7% of the fund. A few stocks can swing its returns either way. Its managers are Ajay Khandelwal (since October 2024) with Ankit Agarwal and Varun Sharma (since January 2026), so most of the five-year record predates the current team.
Axis Midcap: smoother, but lower returns
Axis Midcap had the lowest volatility of the five funds we measured over five years (14.6% a year, against 15.2% for HDFC and Kotak, 16.4% for Edelweiss and 17.2% for Motilal). But lower volatility did not mean smaller falls: its worst drop over the period was 20.3%, against 17.0% for HDFC Mid Cap. It also ranks 17th of 22 on 5-year return.
Does size matter?
Mid cap stocks trade less than large caps, so a very large fund can find it harder to buy or sell without moving prices. HDFC Mid Cap now manages over ₹1 lakh crore. Even so, it ranks third over five years, and Groww showed it accepting lump sums on 29 September 2026. Size is worth watching, but it has not held HDFC back so far.
Who manages them
According to AMC factsheets for August 2026: Chirag Setalvad has run HDFC Mid Cap since June 2007. Trideep Bhattacharya runs Edelweiss Mid Cap with Dhruv Bhatia and Mehul Dalmia. Shreyash Devalkar has run Axis Midcap since November 2016, with Nitin Arora. Kotak Mid Cap's current manager could not be confirmed from an AMC document, so check its latest factsheet.
How to Compare Mid Cap Funds
- Check falls, not just returns. Look at how far a fund fell in 2020 and in 2024–25 compared with the Nifty Midcap 150.
- Check manager tenure. If the manager changed in the last few years, the record belongs to someone else.
- Compare with the index. A mid cap index fund or ETF is a low-cost alternative; mid cap ETFs had expense ratios of about 0.12–0.24% in September 2026. See equity ETFs beyond the Nifty 50.
- Choose the Direct plan to avoid distributor commission.
- Use SIPs. Regular monthly investing spreads your buying across highs and lows. Try the SIP calculator.
How Much to Put in Mid Caps
Mid caps usually sit alongside a large cap or index fund core rather than replace it. There is no standard share. The right figure depends on your goals and how well you handle falls of 20–40%. Our financial planner can help you set it. If your plan calls for ₹30,000 a month in equity SIPs and 20% of that in mid caps, that is ₹6,000 a month.
How It Is Taxed
Mid cap funds are equity funds. Gains on units held up to 12 months are taxed at 20%. Gains after 12 months are taxed at 12.5% on the amount above ₹1.25 lakh a year.
This guide explains how to compare these funds. It is not a recommendation to buy any specific fund.
Related fund guides
- Best Large Cap Mutual Funds India 2026
- Best Small Cap Mutual Funds India 2026
- Best Flexi Cap Mutual Funds
Run your numbers: because mid caps can fall 20–40% before they recover, a SIP is the usual way in. See what a monthly amount that rises with your salary could grow to in the step-up SIP calculator, or test a one-time investment in the lumpsum calculator. If you already hold a mid cap fund, the mutual fund portfolio analyzer shows its real return to compare with the Nifty Midcap 150 TRI figure above.
