Nifty 50 index has generated 17% annualized returns in the last 5 years. High risk investors can still gun for higher returns compared to Nifty returns. If you are one among such investor, you should invest in midcap mutual funds. Nifty Midcap 150 index has outperformed and generated 20% annaulised returns in the last 5 years and 17% annualized returns since inception. Some of the active midcap funds have beaten the benchmark too. What are midcap mutual funds? Which are the Top and Best Mid Cap Mutual Funds to invest in 2022 in India? How is the past performance of these top midcap funds?
Also Read: Best Equity Mutual Funds to invest in 2022 for long term
What are Mid Cap Mutual Funds?
Mid cap mutual funds in simple terms invests in midcap stocks. Midcap stocks are companies that are ranked from 101 to 250 in terms of market capitalization. Midcap stocks have potential to grow large cap companies in the medium to long term.
While large cap funds provide stable returns, Midcap funds can be volatile in the short term, however, can generate high returns in the medium to long term.
Who can invest in Mid Cap Funds?
Midcap funds invest in midcap stocks which are high risk in nature.
These are for high risk investors only.
If a consistent performing mid cap fund is chosen, it can generate handsome returns in the medium to long term.
Investors who are willing to take high risk and would like to invest for a minimum of 8-10 years can invest in mid cap mutual funds.
Due to recent bull run, active midcap funds have generated very high returns, hence investors should not expect similar returns in future. This segment has historically generated 12% to 17% returns. While past performance is just an indication, it can indicate how well such funds can perform in various market cycles.
5 Best Mid Cap Mutual Funds to invest in 2022
We could observe that majority of the midcap funds are able to perform well due to recent bull run. It was difficult to filter top 5 midcap funds. Here is the list of consistent performing mid cap mutual funds to invest in India.
#1 – PGIM India Midcap Opportunities Fund
This fund invests in equity and related instruments in mid cap companies in India.
This fund generated 26% annualized returns in the last 5 years.
This fund generated highest SIP returns of 58% in the last 3 years and 35% in the last 5 years.
This fund has a low beta of 0.94. Beta refers to the volatility of the fund compared to its benchmark. Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has an alpha of 12.45. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
In terms of 5 years rolling returns consistency, this fund generated 12%+ returns for 45% of the times and over 8% returns for 20% of the times. It has generated negative returns for 1.5% times.
| Performance & Risk Metrics | PGIM India Midcap Opportunities Fund |
|---|---|
| Value Research Rating | 5 Star |
| Crisil Rank | 5 |
| 3 Years – SIP Returns | 58% |
| 5 Years – SIP Returns | 35% |
| 5 Years – Annualised Returns | 26% |
| AUM – Crores | 4,070 |
| Expense Ratio | 0.40% |
| Risk Grade | Below Average |
| Return Grade | High |
| Beta | 0.94 |
| Alpha | 12.45 |
Considering all these factors, it is one of the best mid cap mutual funds to invest in 2022.
#2 – Axis Midcap Fund
Even this fund invests in equity and related instruments of mid cap companies in India.
This fund generated 25% annualized returns in the last 5 years.
This fund generated SIP returns of 38% in the last 3 years and 28% in the last 5 years.
This fund has a low beta of 0.71. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has an alpha of 7.2. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
In terms of 5 years rolling returns consistency, this fund generated 12%+ returns for 70% of the times and over 8% returns for 26% of the times. It has not provided any negative returns.
| Performance & Risk Metrics | Axis Midcap Fund |
|---|---|
| Value Research Rating | 5 Star |
| Crisil Rank | 3 |
| 3 Years – SIP Returns | 38% |
| 5 Years – SIP Returns | 28% |
| 5 Years – Annualised Returns | 25% |
| AUM – Crores | 16,835 |
| Expense Ratio | 0.46% |
| Risk Grade | Low |
| Return Grade | High |
| Beta | 0.71 |
| Alpha | 7.20 |
Considering all these factors, it is one of the Top Midcap mutual funds to invest in India in 2022.
#3 – Edelweiss Mid Cap Fund
This fund invests in opportunities in mid cap companies.
This fund generated 22% annualized returns in the last 5 years.
This fund generated SIP returns of 43% in the last 3 years and 27% in the last 5 years.
This fund has a beta of 0.95. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has an alpha of 4.24. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
In terms of rolling returns consistency, this fund generated 12%+ returns for 60% of the times and over 8% returns for 22% of the times. It has not provided any negative returns.
| Performance & Risk Metrics | Edelweiss Mid Cap Fund |
|---|---|
| Value Research Rating | 4 Star |
| Crisil Rank | 4 |
| 3 Years – SIP Returns | 43% |
| 5 Years – SIP Returns | 27% |
| 5 Years – Annualised Returns | 22% |
| AUM – Crores | 1,865 |
| Expense Ratio | 0.54% |
| Risk Grade | Average |
| Return Grade | Above Average |
| Beta | 0.95 |
| Alpha | 4.24 |
Considering all these factors, it is one of the best midcap funds to invest now in 2022.
#4 – Invesco India Mid Cap Fund
This fund generated 22% annualized returns in the last 5 years.
This fund generated SIP returns of 40% in the last 3 years and 26% in the last 5 years.
This fund has a low beta of 0.85. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has an alpha of 3. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
In terms of rolling returns consistency, this fund generated 12%+ returns for 62% of the times and over 8% returns for 30% of the times. It has not provided negative returns.
| Performance & Risk Metrics | Invesco India Mid Cap Fund |
|---|---|
| Value Research Rating | 4 Star |
| Crisil Rank | 3 |
| 3 Years – SIP Returns | 40% |
| 5 Years – SIP Returns | 26% |
| 5 Years – Annualised Returns | 22% |
| AUM – Crores | 2,195 |
| Expense Ratio | 0.79% |
| Risk Grade | Below Average |
| Return Grade | Above Average |
| Beta | 0.85 |
| Alpha | 3.00 |
Considering all these factors, it is one of the best mid cap funds to invest in India.
Also Read: Best Largecap Mutual Funds to invest in 2022
#5 – Kotak Emerging Equity
This fund invests predominantly in mid cap companies in India.
This fund generated 21% annualized returns in the last 5 years.
This fund generated SIP returns of 42% in the last 3 years and 26% in the last 5 years.
This fund has a low beta of 0.95. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.
This fund has an alpha of 3.21. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.
In terms of rolling returns consistency, this fund generated 12%+ returns for 74% of the times and over 8% returns for 16% of the times. It has not provided negative returns.
| Performance & Risk Metrics | Kotak Emerging Equity |
|---|---|
| Value Research Rating | 4 Star |
| Crisil Rank | 4 |
| 3 Years – SIP Returns | 42% |
| 5 Years – SIP Returns | 26% |
| 5 Years – Annualised Returns | 21% |
| AUM – Crores | 17,529 |
| Expense Ratio | 0.53% |
| Risk Grade | Average |
| Return Grade | Above Average |
| Beta | 0.95 |
| Alpha | 3.21 |
Considering all these factors, it is one of the good mid cap mutual funds for 2022.
List of Top 5 Midcap Mutual Funds for 2022 – Annualised returns
| Mutual Fund Name | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| PGIM India Midcap Opportunities Fund | 64% | 40% | 26% |
| Axis Midcap Fund | 43% | 29% | 25% |
| Edelweiss Mid Cap Fund | 49% | 30% | 22% |
| Invesco India Mid Cap Fund | 44% | 27% | 22% |
| Kotak Emerging Equity | 49% | 29% | 21% |
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Dear sir,
Any valuable views on HDFC midcap fund if any
Hello Madhavan, HDFC Midcap Opp fund is also doing good. Like I indicated in my article, there are several midcap funds that are outperforming. I had given only 5 funds in this article.
Dear Suresh
Pls advise on good SWP funds also wherein one can withdraw every month.
Sure Nanmith
Dear Sir
Is it correct to Invest in Nifty Next 50 Index Passive MF also one more MID CAP fund active MF also? Since Active Mid cap Fund Follows the NN50 so is it correct to have both in portfolio ? or any one is enough ?
Nifty Next 50 contains largecap stocks (51-100 stocks in terms of market cap). Midcap funds invests in midcap funds (101 to 150 in terms of market cap). Both are different and you can invest in both. However, both are riskier compared to nifty50 index / stocks.