Best Mid Cap Mutual Funds for 2021

Best mid cap mutual funds to invest in 2021 in India

Midcap Funds are those mutual funds that invest a larger portion of their funds in equity shares of mid-cap companies.

The Securities & Exchange Board of India or SEBI categorizes 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.

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

TOP MID CAP FUNDS 2020-21

The following are the top-rated mid cap funds as per ZFunds scoring for the quarter ended 30th Sept. 2020. The funds with the highest ZF Score (refer methodology here) are ranked at the top. 

List of Latest Best Mid-Cap Mutual Funds

Fund NameAUM (in  Crores)1-Year Return3-Year Return5-Year Return
DSP Mid Cap Fund9,46723.486.4013.42
Nippon India Growth Fund7,84322.245.0611.55
Edelweiss Mid Cap Fund1,02326.113.5911.67
L&T Midcap Fund6,18020.181.4611.89
Axis Midcap Fund7,87823.7212.5914.53
Invesco India Mid Cap Fund1,14224.276.2812.28
BNP Paribas Mid Cap Fund76723.311.679.44
UTI Mid Cap Fund4,49131.653.7810.35
HDFC Mid-Cap Opportunities Fund24,21521.812.4111.14
Tata Mid Cap Fund97123.624.4110.98

*Returns as of 23 December 2020 and AUM as of 30 November 2020.

1. DSP Mid Cap Fund

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 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

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

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

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:

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

Also Read:

Best Large Cap Mutual Funds to Invest in India
Best Small Cap Mutual Funds to Invest in India
Best Multi Cap Mutual Funds to Invest in India
Best ELSS Mutual Funds to Invest
Difference between Large Cap, Mid Cap and Small Cap Funds
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Section 80D - Deductions, Tax Benefits, Claim Amount, Example
What is Rupee Cost Averaging in SIP?
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Shariah Compliant Mutual Funds - Types, Who can Invest, Minimum Investment
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Last Updated: 28-Dec-2020

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