Midcap mutual funds have quietly created significant wealth for investors in the last three years. While many investors focused mainly on largecap and flexicap schemes, several midcap mutual funds generated over 25% annualised returns during this period.
A ₹ 1 lakh lump sum investment in some of these funds would have seen significant growth in the last 3 years due to the strong rally in midcap stocks. However, such returns are based on historical performance and future returns may vary depending on market conditions.
Midcap companies benefited from improving corporate earnings, rising domestic consumption, manufacturing growth, infrastructure spending and strong investor participation. As a result, several midcap mutual funds delivered impressive returns and outperformed many broader market categories.
In this article, we will look at the top performing midcap mutual funds that delivered over 25% annualised returns in the last three years.
Also Read – 10 Mutual Funds That Gave 108% to 131% Absolute Returns in Last 3 Years
How We Filtered These Midcap Mutual Funds?
We considered all open-ended midcap mutual funds for this analysis and excluded ETFs and index funds.
The following criteria were used:
- Only midcap mutual funds were considered
- ETFs and index funds were excluded
- Only direct plans were considered
- Funds should have minimum 3-year performance track record
- Funds were ranked based on highest 3-year CAGR returns
Data is as of 25-May-2026. Returns are annualised CAGR returns.
Top 7 Midcap Mutual Funds With 25%+ Annualised Returns in 3 Years
| Rank | Fund Name | 3 Year CAGR Returns (%) | 5 Year CAGR Returns (%) | 10 Year CAGR Returns (%) |
|---|---|---|---|---|
| 1 | HSBC Midcap Fund | 28.5 | 20.5 | 18.9 |
| 2 | ICICI Prudential Midcap Fund | 27.8 | 21.0 | 19.0 |
| 3 | WhiteOak Capital Mid Cap Fund | 27.1 | — | — |
| 4 | Invesco India Mid Cap Fund | 26.8 | 21.9 | 20.3 |
| 5 | Edelweiss Mid Cap Fund | 26.0 | 21.8 | 20.5 |
| 6 | Nippon India Growth Mid Cap Fund | 25.8 | 22.5 | 20.0 |
| 7 | ITI Mid Cap Fund | 25.7 | 18.7 | — |
A disciplined SIP investment approach in some of these top-performing midcap funds over the last three years would have benefited long-term investors during the broader midcap rally. However, investors should note that past performance may not be sustained in the future.
Let us now look at these midcap mutual funds in detail.
1) HSBC Midcap Fund
HSBC Midcap Fund delivered the highest 3-year annualised return of 28.5% among midcap mutual funds in our analysis. The fund has also generated around 20.5% annualised returns over the last 5 years and 18.9% annualised returns over the last 10 years.
The scheme benefited from strong stock selection across industrials, manufacturing and financial companies that performed well during the broader midcap rally.
You may like – 10 Mutual Funds That Gave 14% to 67% Returns in 3 Months.
2) ICICI Prudential Midcap Fund
ICICI Prudential Midcap Fund generated 27.8% annualised returns in the last three years. The fund also delivered 21% CAGR returns over the last five years and 19% CAGR returns over the last ten years.
The fund follows a diversified investment approach and focuses on high-growth midcap companies across sectors.
3) WhiteOak Capital Mid Cap Fund
WhiteOak Capital Mid Cap Fund delivered 27.1% annualised returns in the last three years. Though the fund does not have a long 5-year or 10-year track record yet, it has performed strongly in recent years.
The scheme follows a research-driven investment strategy and focuses on quality midcap businesses with strong earnings growth potential.
4) Invesco India Mid Cap Fund
Invesco India Mid Cap Fund generated 26.8% annualised returns over the last three years. The fund also delivered 21.9% annualised returns over five years and 20.3% annualised returns over ten years.
The fund focuses on identifying mid-sized companies with scalable business models and long-term growth opportunities.
Check 10 Mutual Funds That Gave 23% to 34% Returns in Last 1 Year.
5) Edelweiss Mid Cap Fund
Edelweiss Mid Cap Fund delivered 26% annualised returns in the last three years. The fund has also generated 21.8% CAGR returns over the last five years and 20.5% CAGR returns over the last ten years.
The scheme follows a bottom-up stock selection approach and invests in fundamentally strong midcap businesses.
6) Nippon India Growth Mid Cap Fund
Nippon India Growth Mid Cap Fund generated 25.8% annualised returns in the last three years. The fund has also delivered strong long-term returns of 22.5% CAGR over five years and 20% CAGR over ten years.
The scheme has been one of the popular midcap funds among long-term investors due to its consistent performance across market cycles.
7) ITI Mid Cap Fund
ITI Mid Cap Fund delivered 25.7% annualised returns over the last three years. The fund also generated 18.7% annualised returns over the last five years.
The scheme focuses on investing in emerging midcap opportunities across sectors with strong growth visibility.
Why Midcap Mutual Funds Performed Well?
Midcap companies benefited significantly from India’s improving economic environment over the last few years. Rising domestic demand, manufacturing growth, government infrastructure spending and improving corporate earnings supported midcap businesses.
Several sectors such as capital goods, manufacturing, financials, infrastructure and industrials witnessed strong earnings growth, which boosted midcap stock performance.
Retail investor participation through SIP investments also remained strong, helping midcap mutual funds attract steady inflows.
Risks Investors Should Know
Investors should note that midcap mutual funds can be highly volatile during market corrections. While these funds delivered strong historical returns, future performance may vary depending on market conditions.
Midcap funds are generally suitable for investors with:
- High risk appetite
- Long-term investment horizon of at least 5-7 years
- Ability to withstand short-term market volatility
Investors should avoid selecting mutual funds purely based on recent returns and should consider their financial goals and risk profile before investing.
Explore 10 Mutual Funds That Gave 12% to 22% Returns in Last 6 Months.
Conclusion
Several midcap mutual funds delivered strong annualised returns in the last three years, supported by broader market momentum and improving corporate earnings. However, investors should avoid making investment decisions based solely on short-term or recent performance.
Midcap mutual funds can experience higher volatility compared to largecap funds. Investors should evaluate their financial goals, risk appetite and investment horizon before investing in such schemes.
A disciplined long-term investment approach and proper diversification can help investors manage risks better while investing in midcap mutual funds.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. Past performance may or may not be sustained in the future.
