5 Best Mid Cap Mutual Funds to Invest in 2020

best mid cap mutual funds 2020 to invest in IndiaBest Mid Cap Mutual Funds to invest in 2020 in india


Investors in mid cap mutual funds and small cap mutual funds has been nervous as these funds have been under-performing in the last couple of years. I am indicating in various comments and articles that investors should not worry about short term performance. We are seeing now that mid cap funds have started bouncing back. Some of the midcap funds gave almost 16% returns in just 1 year. In this article we would provide some of the best performing mid cap mutual funds to invest in 2020 in India.

Also Read: Best Performing Mutual Funds in 20 years

What are Mid Cap Mutual Funds?


Midcap mutual funds in simple terms invests in midcap stocks in India. While Large cap stocks are from 1st to 100th in terms of market capitalization, Midcap stocks are categorized as stocks from 101th  to 250th stock in terms of market capitalization. Experts believe that midcap stocks are future large cap stocks. Hence midcap stocks have huge potential to grow your money. However, picking up a good mid-cap stock is always a challenge. Here come midcap mutual funds. The Midcap fund manager, who is expert would pick-up stocks for investment in such funds.

How we filtered these midcap mutual funds to invest in 2020?


Like every year, even this year, we are recommending midcap funds that can outperform in the coming years. Here are the list of parameters we considered in short listing the midcap mutual funds to invest in India.

1) We considered best performing midcap funds in the last 10 years, 5 years, 3 years, 1 year and 3 months.

2) We have short listed funds that performed well during various market cycles in the last 5 years.

3) These funds are rated by value research online as 3 star, 4 star and 5 star.

4) These funds have Assets under Management as > Rs 500 Crores.

Best Mid Cap Mutual Funds to invest in 2020


Here are the list of mid cap mutual funds invest in India.

1) Kotak Emerging Equity Fund

2) DSP Midcap Fund

3) Axis Midcap Fund

4) Invesco India Mid Cap Fund

5) Tata Midcap Growth Fund

Now let us see the reason why we need to invest in these midcap mutual funds now.

#1 – Kotak Emerging Equity Fund


What is this Fund Objective?

This fund invests in equity and related securities predominantly in mid companies and aims for long term capital appreciation.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 15% annualized returns in the last 10 years, 12% annualized returns in the last 5 years and 6% annualized returns in the last 3 years.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.7 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60K and such amount would have now grown to Rs 75K.

best mid cap mutual funds 2020 - kotak emerging equity fund

Why should you invest in this midcap fund?

This fund has given 12% annualized return since inception. This fund has 0.85 Beta which indicates low volatility compared to benchmark. This fund bounced back as soon as midcap stocks performing well. Considering its long standing performance in the last 5-10 years, this can be considered as one of the best performing mid cap mutual fund to invest in 2020.

#2 – DSP Midcap Fund


What is this Fund Objective?

This fund invests in equity and equity related securities of mid-cap companies in India.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 16% annualized returns in the last 10 years, 12% annualized returns in the last 5 years and 7% annualized returns in the last 3 years.

If one would have done SIP of Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.65 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60K and such amount would have now grown to Rs 75,000.

best mid cap mutual funds 2020 - dsp midcap fund

Why should you invest in this midcap mutual fund?

This fund has given 14% annualized return since inception. This fund has a beta of 0.85 which indicates less volatility compared to its benchmark. Even this fund bounced back as soon as mid cap stocks performing well. Considering its outstanding performance in the last 1 year to 10 years at various market cycles, it can be considered as one of the best mid cap mutual funds invest in India in 2020.

You may like: Best SIP Mutual Funds for 10 years

#3 – Axis Midcap Fund


What is this Fund Objective?

This fund invests in equity and equity related instruments of midcap companies in India.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 12% annualized returns in the last 5 years and 13% annualized returns in the last 3 years.

If one would have done SIP of Rs 1,000 per month since inception of Feb-2011, the investment would have been Rs 1.05 Lakhs and such fund would have now grown to Rs 2.29 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60K and such amount would have now grown to Rs 82K.

best mid cap mutual funds 2020 - axis midcap fund

Why should you invest in this midcap mutual fund?

This fund has given 17% annualized return since inception. This fund has a Beta of 0.75 which indicates very low volatility compared to its benchmark. This fund has performed extremely well and gave 16% returns in the last 1 year when midcap segment bounced back. Considering its outstanding performance in the last 9 years at various market cycles, it can be considered as one of the top performing mid cap funds to invest.

#4 – Invesco India Mid Cap Fund


What is this Fund Objective?

This mutual fund invests in equity and equity related securities predominantly in mid-cap stocks in India.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 17% annualized returns in the last 10 years, 10% annualized returns in the last 5 years and 8% annualized returns in the last 3 years.

If one would have done SIP of Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.64 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60K and such amount would have now grown to Rs 74,000.

best mid cap mutual funds 2020 - invesco india midcap fund

Why should you invest in this midcap mutual fund?

This fund has given 13.5% annualized return since inception. This fund has a beta of 0.87 which indicates low volatility compared to the benchmark. Considering its outstanding performance in the last 10 years at various market cycles, it can be considered as one of the best mid cap funds in India.

#5 – Tata Midcap Growth Fund


What is this Fund Objective?

This fund aims to invest in equity and equity related securities in mid-cap stocks in India.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 15% annualized returns in the last 10 years, 10% annualized returns in the last 5 years and 7% annualized returns in the last 3 years.

If one would have done SIP of Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.55 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 72,000.

best mid cap mutual funds 2020 - tata midcap growth fund

Why should you invest in this midcap mutual fund?

This fund has given 12% annualized return since inception. This fund has a beta of 0.96 which indicates less volatility compared to the benchmark. This fund has bounced back and gave 14% returns in the last 1 year. Considering its superb performance in the last 10 years at various market cycles, it can be considered as one of the top mid-cap funds in India.

Bonus Tip – HDFC Mid-Cap Opportunities Fund


What is this Fund Objective?

This fund aims to invest in equity and equity related securities in mid-cap companies in India.

How is the performance of this mid cap mutual fund?

This fund has outperformed and gave 17% annualized returns in the last 10 years, 10% annualized returns in the last 5 years and 4% annualized returns in the last 3 years.

If one would have done SIP of Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.6 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 70,000.

Why should you invest in this midcap mutual fund?

This fund has given 14% annualized return since inception in the last 12 years. This fund has a beta of 0.89 which indicates less volatility compared to the benchmark. This fund has bounced back only in the last 3 months and gave 10% returns. However, we are yet to see this fund recovering full extent the way other mid-cap funds are bouncing back. This fund has been recommended by us in the last few years and we would advise you to continue it as of now.

You may like: 20 Best High Return Mutual Funds to invest now

Performance comparison – Mid Cap Mutual Funds to invest in 2020


List of best mid cap mutual funds 2020 to invest in India

Who should invest in these mid cap mutual funds?


These are high risk mutual fund schemes. If you are a high risk investor and willing to invest for at least 8-10 years time frame, you can invest in these mid-cap funds. I would recommend you invest atleast 3-5 funds from this list to avoid any under performance of a fund.

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Suresh KP

Best Mid Cap Mutual Funds to invest in 2020

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