Midcap mutual funds offer a sweet spot between the stability of large caps and the high-growth potential of small caps. To keep this article practical and data-backed (like your previous super-hit), we’ve shortlisted the 5 Best Midcap Mutual Funds to invest in 2025 using 3-year and 5-year rolling returns over a 10-year window.
Earlier we wrote about Best Mutual Funds to invest in 2025 based on Rolling Returns
What Are Rolling Returns in Mutual Funds?
Rolling returns are calculated over overlapping periods (e.g., every possible 3-year or 5-year window) in the chosen timeframe. They eliminate the bias of a single start/end date and show consistency across market cycles. We focus on median rolling returns as they reflect the typical investor experience better than extremes.
How We Filtered These Funds (Same spirit as your hit article)
- Considered Direct – Growth plans only.
- Used a 10-year history (27-Aug-2015 to 26-Aug-2025).
- Evaluated both 3-year and 5-year rolling returns.
- Prefer funds with higher average & median rolling returns.
- Favoured funds with low negative periods and higher share of >20% rolling outcomes.
- Excluded funds with recent governance issues or sustained 2Y underperformance (e.g., Quant Midcap).
- Shortlisted 5 funds that balance returns + consistency + risk control.
We did similar approach when we filtered balanced mutual funds too. Check out our Top Balanced Mutual Funds for 2025 Based on Rolling Returns.
Top 5 Midcap Mutual Funds (with Average Rolling Returns)
(Period: 27-Aug-2015 to 26-Aug-2025)
#1 – Edelweiss MidCap Fund (Direct Growth)
- 3Y Avg: 20.22% | 5Y Avg: 21.94%
- Highlight: Strong 5Y averages; >20% in 45.56% of 5Y windows.
#2 – Nippon India Growth Mid Cap Fund (Direct Growth)
- 3Y Avg: 19.92% | 5Y Avg: 21.21%
- Highlight: Consistent; >20% in 43.40% of 5Y windows.
#3 – Invesco India MidCap Fund (Direct Growth)
- 3Y Avg: 19.65% | 5Y Avg: 20.93%
- Highlight: Very low negatives; >20% in 44.81% of 5Y windows.
#4 – Motilal Oswal Midcap Fund (Direct Growth)
- 3Y Avg: 20.58% | 5Y Avg: 21.14%
- Highlight: Strong upside capture; >20% in 39.92% of 5Y windows.
#5 – PGIM India Midcap Fund (Direct Growth)
- 3Y Avg: 19.09% | 5Y Avg: 20.86%
- Highlight: Highest share of >20% 5Y windows at 61.10% (powerful long-term compounding).
Funds like HDFC Mid Cap Opportunities Fund and Kotak Midcap Fund are strong too, but the above five scored best on the combined screen of averages, medians, and >20% frequency while also aligning with your exclusion criteria.
Some of the above funds are analysed in our earlier article 12 Mutual Funds that Outperformed in the last 2 years.
Deep Dive: 5 Best Midcap Funds (Rolling + Annualised + Why + Who + Risks)
#1 – Edelweiss MidCap Fund
Investment Objective: Long-term capital appreciation by investing predominantly in equity and equity-related securities of midcap companies.
Rolling Returns
- 3-Year Median: 23.91%
- 5-Year Median: 19.49%
Annualised Returns (Point-to-Point)
- 1-Year: — 4.8%
- 3-Year: — 26.4%
- 5-Year: — 30.5%
- 10-Year: — 19.6%
Why to Invest?
- Strong 3Y/5Y averages with healthy upside capture.
- Above-average frequency of >20% outcomes in 5Y periods (45%+).
- Balanced portfolio construction; suitable core midcap exposure.
Who Can Invest?
- Investors seeking a core midcap holding with consistency.
- SIP investors with a 5–7+ year horizon aiming for growth.
Risk Factors
- Typical midcap volatility during sharp drawdowns.
- Returns can lag in narrow large-cap led markets.
#2 – Nippon India Growth Mid Cap Fund
Investment Objective: Long-term capital appreciation through equity/equity-related instruments of mid-sized growth companies.
Rolling Returns
- 3-Year Median: 22.51%
- 5-Year Median: 18.91%
Annualised Returns (Point-to-Point)
- 1-Year: — 1.3%
- 3-Year: — 25.3%
- 5-Year: — 29.1%
- 10-Year: — 18.8%
Why to Invest?
- One of the longest-running midcap strategies; broad sector play.
- Strong long-term averages with diversified portfolio stance.
- Good upside in cyclical upswings.
Who Can Invest?
- Investors comfortable with moderate-to-high risk for superior long-term returns.
- Those preferring diversified midcap exposure.
Risk Factors
- Can be more volatile than peers in risk-off phases.
- Higher cyclicality; requires discipline to stay invested.
#3 – Invesco India MidCap Fund
Investment Objective: To generate capital appreciation by investing predominantly in midcap companies with strong growth potential.
Rolling Returns
- 3-Year Median: 21.68%
- 5-Year Median: 19.26%
Annualised Returns (Point-to-Point)
- 1-Year: — 12.5%
- 3-Year: — 29.3%
- 5-Year: — 29.3%
- 10-Year: — 20.2%
Why to Invest?
- Very low negative periods in rolling windows (near-zero for 3Y/5Y).
- Stable risk-adjusted profile; steady compounding across cycles.
- Suitable as a core SIP fund.
Who Can Invest?
- Investors seeking consistency > aggression.
- First-time midcap investors building long-term SIPs.
Risk Factors
- May trail more aggressive peers in sharp bull phases.
- Style discipline can underperform during speculative runs.
#4 – Motilal Oswal Midcap Fund
Investment Objective: Long-term capital appreciation by investing in a focused portfolio of quality midcaps (QGLP framework: Quality, Growth, Longevity, Price).
Rolling Returns
- 3-Year Median: 23.89%
- 5-Year Median: 17.15%
Annualised Returns (Point-to-Point)
- 1-Year: — 2.3%
- 3-Year: — 29.7%
- 5-Year: — 33.9%
- 10-Year: — 19.2%
Why to Invest?
- Strong upside capture (3Y max: 43.61%, 5Y max: 41.00%).
- Higher alpha potential via focused, high-conviction bets.
- Complements steadier core midcap holdings.
Who Can Invest?
- Investors comfortable with higher active risk for alpha.
- Those blending with a conservative core midcap fund.
Risk Factors
- Higher short-term volatility; concentrated bets can hurt in corrections.
- May underperform in sideways markets.
Above fund is part of 12 Best Mutual Funds with 5 Star Rating in 2025 by Value Research Onlne.
#5 – PGIM India Midcap Fund
We analysed this fund which was part of 30 Mutual Funds that generated 3x returns in 5 years time frame.
Investment Objective: Generate long-term capital appreciation by investing primarily in mid-sized companies with scalable business models.
Rolling Returns
- 3-Year Median: 17.37%
- 5-Year Median: 21.13%
Annualised Returns (Point-to-Point)
- 1-Year: — 3.8%
- 3-Year: — 15.3%
- 5-Year: — 26.2%
- 10-Year: — 17.3%
Why to Invest?
- Outstanding long-horizon consistency – 61.10% of 5Y windows delivered >20%.
- Strong 5Y medians; powerful compounding potential with SIPs.
- Diversified sector stance.
Who Can Invest?
- Investors with 7–10 year horizon, prioritising long-run consistency.
- SIP investors aiming for midcap-led wealth creation.
Risk Factors
- 3Y medians are lower vs peers; near-term phases can be mixed.
- Typical midcap drawdown risk applies.
Recent 1-Year Trends & Exclusion Rationale
Midcaps saw bouts of volatility; breadth rotations affected fund rankings.
Quant Midcap Fund excluded due to front-running case and weak last 2-year performance. While historical rolling returns are strong, we prioritised governance + recent risk in this list.
For lump sums, prefer staggered entry; for SIPs, maintain discipline.
Conclusion
These five schemes combine high rolling return averages/medians with acceptable risk and strong long-run behaviour. Align your choice with risk appetite and holding horizon (minimum 5–7 years). Use SIPs for smoother experience; review annually.
- 5 Best Midcap Mutual Funds to Invest in 2025 (Based on Rolling Returns) - August 29, 2025
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