Best Midcap Mutual Funds to invest in 2021 | Top Performing midcap mutual funds to invest in India
Midcap mutual funds has been underperforming in the last few years. However in 2020, this category of funds has bounced back and provided superior returns. We expect midcap mutual funds would continue to perform well in 2021 too. Which are the best midcap mutual funds to invest in 2020? Which are the Top Midcap SIP mutual funds to invest in India in 2021?
Also Read: Best Performing Mutual Funds in 20 years
What is a Midcap Fund?
Midcap mutual funds in simple terms invests in midcap stocks in India. While Large cap stocks are from 1 to 100 in terms of market capitalization, Midcap stocks are categorized as stocks from 101 to 250 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 2021?
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 2021 / Top Performing Midcap Funds
Here are the list of mid cap mutual funds invest.
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?
| Fund | Kotak Emerging Equity Fund Regular Plan |
|---|---|
| Returns in 3mth | 13% |
| Returns in 1 year | 11% |
| Annualised Returns in 3 years | 3% |
| Annualised Returns in 5 years | 9% |
| Annualised Returns in 10 years | 12% |
| Exp Ratio | 1.86% |
| Net Assets (AUM) Rs Crs | 7,300 |
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 2021.
#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?
| Fund | DSP Midcap Fund |
|---|---|
| Returns in 3mth | 14% |
| Returns in 1 year | 18% |
| Annualised Returns in 3 years | 5% |
| Annualised Returns in 5 years | 11% |
| Annualised Returns in 10 years | 12% |
| Exp Ratio | 1.93% |
| Net Assets (AUM) Rs Crs | 7,883 |
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 in late 2019. 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 fund invest in India in 2021.
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?
| Fund | Axis Midcap Fund |
|---|---|
| Returns in 3mth | 11% |
| Returns in 1 year | 14% |
| Annualised Returns in 3 years | 11% |
| Annualised Returns in 5 years | 10% |
| Annualised Returns in 10 years | NA |
| Exp Ratio | 2.02% |
| Net Assets (AUM) Rs Crs | 6,307 |
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. 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?
| Fund | Invesco India Mid Cap Fund |
|---|---|
| Returns in 3mth | 12% |
| Returns in 1 year | 17% |
| Annualised Returns in 3 years | 6% |
| Annualised Returns in 5 years | 10% |
| Annualised Returns in 10 years | 13% |
| Exp Ratio | 2.36% |
| Net Assets (AUM) Rs Crs | 1,005 |
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?
| Fund | Tata Midcap Growth Fund |
|---|---|
| Returns in 3mth | 12% |
| Returns in 1 year | 12% |
| Annualised Returns in 3 years | 3% |
| Annualised Returns in 5 years | 7% |
| Annualised Returns in 10 years | 12% |
| Exp Ratio | 2.42% |
| Net Assets (AUM) Rs Crs | 838 |
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 in mid of 2019. 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
You would have got doubt “Should I continue with HDFC Midcap Opportunities fund”, then our below section answers this.
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?
| Fund | HDFC Mid-Cap Opportunities Fund |
|---|---|
| Sector | Mid Cap Fund |
| Returns in 3mth | 13% |
| Returns in 1 year | 10% |
| Annualised Returns in 3 years | 1% |
| Annualised Returns in 5 years | 8% |
| Annualised Returns in 10 years | 13% |
| Exp Ratio | 1.83% |
| Net Assets (AUM) Rs Crs | 22,084 |
Why should you invest in this midcap mutual fund?
This fund has a beta of 0.89 which indicates less volatility compared to the benchmark. This fund has bounced back only during Dec 2019. 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
Who should invest in mid cap 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.
FAQs on Midcap funds
1) Is it a good time to invest in midcap funds?
Midcap funds are high risk. One should invest through SIP to average the risk factor. Hence instead of timing the market, one should go and invest them in regular intervals in such funds
2) Which is the best midcap mutual fund in India?
There is nothing like best. However one can review the consistent performers in this segment and invest it. You can review the list of midcap mutual funds recommended in this article for reference
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1. Place all info in a table format so that comparisons can be made easily.
2. Important info missing, like fees, redemption conditions, risk-level, turnover, etc. If you find this too much, then provide ref. like Value invest, guide readers to find out more!
3. Also, compile info like Dalla St Journal – the proportion of large, mid, and small-cap stocks in Midcap funds, Alm size, etc.
Hi, for mid cap which one would be choice for 2020 to invest between Axis mid cap fund growth or Invesco mid cap.
Worth reading and insightful article on mid cap funds. Its definitely going to help mutual fund investors for taking right decision for Mid cap funds.
Thank you Pankaj
Thanks Suresh for sharing the list.
May I ask what’s your view on hdfc midcap. I have been holding this for last 2 yrs and returns are not that great
Hello Vikram, I have shared my feedback on bonus tip at end of the article. You can hold this mutual fund as of now. This fund is yet to bounce back the way other midcap funds are performing now.
Thank you for this post. I currently hold Invesco India contra fund and HDFC hybrid equity fund.
Shall I add one/two of the above mid cap fund ? What would you recommend?
Devdatta, If you are high risk investor, you can add 2-3 funds indicated in the article
Great. Thanks for the response.
I have evaluated above funds, adding 2 into my folio. ( Axis and Kotak).