mid cap mutual funds

What is Mid-Cap Mutual Funds?

As the name states, mid-cap mutual funds are those which are invested in stocks of mid-sized companies with medium-market capitalizations. Context to this, the specific word ‘cap’ refers to the size of the listed company or to the market capitalization (that ranges between INR 500 crore to INR 10000 crore). Also, the size of a company is an important criterion whilst selecting equity portfolios reason being, the portfolio would have its unique set of risks and opportunities depending on the size of the company.

What are The Best Midcap Mutual Funds to Invest

L&T Midcap Fund (G) - Direct Plan

Mutual Fund 5 Star

Returns 3Y: 18.10%

DSP Midcap Fund (G) - Direct Plan

Return 3Y: 16.02%

Invesco Midcap Fund (G) - Direct Plan

Return 3Y: 16.17%

Franklin India Prima Fund (G) - Direct

Return 3Y: 14.55%

HDFC Midcap Opp Fund (G) - Direct

Return 3Y: 15.62%

  • Past Performance Is No Guarantee of Future Results


Mid cap mutual fund schemes invest in stocks of mid-sized companies or stock with medium market capitalizations. The market capitalization ranges from Rs 500 cr to Rs 1000 cr. The company size is an essential criterion while selecting the equity portfolio as it provides unique sets of opportunity and risk to their investor. Mid cap mutual fund scheme invests in mid-sized companies that have the potential to become large companies.

Who Should Invest in Mid-Cap Mutual Funds?


Investors who are looking for better growth and high-risk appetite for risks as compared to large cap funds should invest in mid cap mutual funds. If investors are happy to go with the flow of volatility of stocks, then mid-cap mutual funds it is.

NOTE: Mid-sized companies tend to provide steep growth and faster earnings whilst being volatile on the stock index.

Why Invest in Mid Cap Mutual Funds with Gulaq

  •  Seamless Onboarding & Execution:

We cut out Paper and Jargon. We do everything digitally – from KYC to execution. Your experience with Gulaq will be simple, easy to understand, hassle-free and all-online. (By the way – NO SALES CALLS)


  • Quantitatively Optimized

We are committed to using our decades of experience for your benefit. Profoundly researched mutual funds. Rooted recommendations. Market tested. Reliable advice for you from expert’s algorithms.


  • Transparent and Fair

No nasty surprises! No commissions, we sell only direct, zero commission mutual funds. Our incentives are always the same as yours. We always optimize your portfolio for the best returns. We have got you covered.


  • Secure and Private

Complete privacy and security of data. With the promise of never sharing your data with any third party for advertising, marketing or for any other reason without your consent.

What are The Key Points To Be Consider as An Investor to Invest in Mid Cap Mutual Funds?

Before investing in Mid cap Mutual funds, there are certain things investor needs to keep up in mind.

  • Mid-caps tend to be more volatile and see greater price movement as compared to large cap. They perform very well in the bull, but they tend to plunge in value when the market sentiment is going down.

  • They also suffer from liquidity constraints due to their capital base. Since the underlying shares are characterized by lower market capitalizations and limited liquidity, these funds tend to follow the cycle of boom and bust.

  • Most investors look at the past performance and short-term performance of a fund and they go ahead with their investment decision. This is one of the biggest fallacies. An investor needs to understand how and why has fund delivered the respective return.

How To Evaluate Your Mid Cap Mutual Funds?


There are various ways to evaluate your Mid Cap Mutual Funds. Take a closer look at the basis of various parameters:

  • Performance and risk analysis.

This is one of the most important metrics to analyse your mid cap mutual funds. If the mid cap has shown consistency in performance across various market periods with calculated risk adjusted returns. Before investing make sure to check what was the fund performance during the short term and long-term periods such as 1 year, 3 years and 5 year, depending upon the risk- reward ratios like Sharpe Ratio, Sortino Ratio and Standard Deviation.

  • Performance across Market Cycles:

An investor before investing make sure to check, whether the fund can perform consistently across different market cycles. Before investors Invest in Mid Cap Mutual Funds one should compare the performance of all the available mid cap funds vis-a-vis their benchmark index across bull phases and bear phases.

  • Assessment of Portfolio Quality:

The investor must access their portfolio should be well diversified and the exposure to the top 10 holdings should be ideally under 50%. Also, from the investor point of view, make sure to note down the portfolio turnover ratio and expenses as well as fund manager performance over a time. Further make sure to ensure that the mutual fund house has a track record of consistent performance over different schemes.

Advantages of Mid Cap Mutual Funds.

Mid cap mutual funds for sip is a good thought for investing. How about giving it a min read to the advantages? Here:

Let’s turn the table and get on a long-term history of mutual funds- Mid-cap mutual funds have consistently out-performed large-cap mutual funds. The mid cap mutual funds are relatively under-followed in stock markets as compared with large-cap funds, thus, providing the investors with the good opportunity to seek faster growth in their portfolio using these funds. NOTE: However, mid-cap funds performance is well enough in bull runs, but they tend to plunge in value, especially when the market sentiment is dripping. Make sure you take care of the factor.

Frequently Asked Questions


What are the best mid cap mutual funds?

Is it good to invest in midcap mutual fund?

What is the difference between large and mid cap funds?

should i invest in small and mid cap funds

Invest in Midcap Mutual Funds & Earn 1%* Higher Returns


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Attention Investor
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.

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Estee Advisors Pvt Limited (hereinafter referred to as “EAPL”) is registered with the Securities and Exchange Board of India as Stock Broker with registration number INZ000170130 and registered with BSE Star with code 24408 for mutual fund transaction facility. EFSPL and EAPL are group companies and EAPL is authorized to provide its services to the Users on the Gulaq website/app under a Sub-distribution agreement with EFSPL.

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Mutual fund investments are subject to market risks, read all scheme documents carefully.

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