If you’re looking for the best midcap funds in India 2025 to give your portfolio a serious boost, you’re in the right place.Today, let’s talk about how best midcap funds can be a powerful engine for your long-term wealth, especially through a SIP.
Think of midcap companies as the vibrant, ambitious middle children of the stock market. They’ve outgrown the initial struggles of small-caps but haven’t yet become the slower-moving large-caps. This sweet spot offers a fantastic balance—more stability than small-caps and higher growth potential than large-caps. If you can stay invested for seven years or more, you can truly let the magic of compounding work in your favor.
Why Invest in Best Midcap Funds in 2025?
So, why the buzz around best midcap funds? Simply put, they hold companies that are in their exciting growth phase—they’ve found their footing and are now expanding rapidly. This “sweet spot” often leads to stronger returns compared to their larger, more established counterparts.
They’re also a great way to diversify your portfolio beyond the usual giant corporations, giving you a stake in the vibrant, emerging sectors of the Indian economy.
The best part? You don’t need perfect timing. By investing through a SIP, you use a simple, disciplined strategy. You invest a fixed amount regularly, which naturally smooths out market ups and downs. Starting a SIP in a solid best midcap fund is one of the smartest, most straightforward moves you can make for your long-term wealth.
Earlier we wrote about : Best Flexicap Funds
Key Factors to Evaluate Before Choosing Best Midcap Funds :
Getting into midcap funds is exciting, but a quick checklist can save you from future headaches. Think of it like checking the essentials before a road trip.
First, don’t just glance at last year’s star performance. Dig a little deeper and see how the fund has navigated both good and rough markets over the last 3-5 years. Consistency is key. Next, remember you’re betting on the fund manager’s skill. A seasoned captain with a clear strategy is vital for steering through market twists and turns.
Also, keep an eye on costs. That annual fee, called the expense ratio, might look small, but over 20 years, a high one can quietly shrink your wealth. I usually stick with funds charging less than 1%.
Finally, and most importantly, be real with yourself. Midcap funds can be a bumpy ride. They’re perfect for long-term investors who can stomach some volatility for the chance of higher growth. If you can stay invested without panicking during dips, you’re probably a good fit.
Top 5 Best Midcap Funds in India 2025 :
Alright, let’s get to the main event. After looking at the five-year returns (CAGR), AUM, expense ratios, and overall consistency, here are my top five picks for the best midcap funds in India 2025.
1. Edelweiss Midcap Fund
This fund has a sharp focus on midcap companies that are scalable and have strong foundational businesses. It has built a reputation for steady, reliable performance. If you’re a long-term investor looking for stable growth without too much drama, this is a great option to consider.
- 5-Year CAGR: 21.94%
- 1-Year Return: 20.22%
- AUM: ₹11,027 crore
- Expense Ratio: 0.38%
- Min. SIP: ₹100
2. Nippon India Growth Fund
A true veteran in the space, this fund has a long and impressive track record. It offers a well-diversified portfolio of midcap stocks and has been a favorite for investors with an aggressive growth mindset. It’s a solid pillar for any long-term portfolio.
- 5-Year CAGR: 21.21%
- 1-Year Return: 19.92%
- AUM: ₹38,581 crore
- Expense Ratio: 0.78%
- Min. SIP: ₹100
3. Invesco India Midcap Fund
This fund takes a balanced approach, carefully selecting quality midcap companies to manage risk while still aiming for strong growth. It’s an excellent choice if you have a moderate risk tolerance but still want to capture the upside of the midcap segment.
- 5-Year CAGR: 20.93%
- 1-Year Return: 19.65%
- AUM: ₹8,063 crore
- Expense Ratio: 0.58%
- Min. SIP: ₹500
4. Motilal Oswal Midcap Fund
Known for its focused strategy, this fund doesn’t spread its bets too thin. It invests in a concentrated portfolio of high-growth midcap companies it believes in strongly. This approach has helped it deliver some impressive long-term returns for its investors.
- 5-Year CAGR: 21.14%
- 1-Year Return: 20.58%
- AUM: ₹33,609 crore
- Expense Ratio: 0.65%
- Min. SIP: ₹500
5. PGIM India Midcap Fund
This fund is all about the magic of compounding. It has consistently delivered strong long-term growth by sticking to its investment process. If you are a patient investor who wants to just set up a SIP and let the fund work for you over the years, this is a fantastic contender.
- 5-Year CAGR: 20.86%
- 1-Year Return: 19.09%
- AUM: ₹11,284 crore
- Expense Ratio: 0.46%
- Min. SIP: ₹1,000
Comparison Table: Best Midcap Funds 2025 :
| Fund Name | 5-Year CAGR | 1-Year Return | AUM (₹ Cr) | Expense Ratio | Min. SIP (₹) |
|---|---|---|---|---|---|
| Edelweiss Midcap Fund | 21.94% | 20.22% | 11,027 | 0.38% | 100 |
| Nippon India Growth Fund | 21.21% | 19.92% | 38,581 | 0.78% | 100 |
| Invesco India Midcap | 20.93% | 19.65% | 8,063 | 0.58% | 500 |
| Motilal Oswal Midcap | 21.14% | 20.58% | 33,609 | 0.65% | 500 |
| PGIM India Midcap | 20.86% | 19.09% | 11,284 | 0.46% | 1,000 |
Conclusion: About 5 Best Midcap Funds in India
You know, picking the best midcap fund is a bit like choosing a reliable travel partner for a long journey. You want someone steady who knows the road well. From what I’ve seen, funds like Edelweiss, Nippon India Growth, and Motilal Oswal have proven they can handle both smooth highways and bumpy patches.
If you’re thinking about getting started, here’s what I’d do: pick one fund that feels right and begin with a small SIP. The magic really happens when you just keep at it, month after month. I’ve learned that slow and steady truly does win this race. When you’re ready to begin, maybe have a quick chat with someone who knows this space well – it always helps to get a second opinion before you set off on your investment journey.
Disclaimer: The information above is for educational purposes only and is not a recommendation to buy or sell any mutual fund. Always do your own research or consult a financial advisor before making investment decisions.
FAQs about 5 Best Midcap Funds in India 2025:
1.Is Quant Mid Cap Fund good for long term?
Quant Mid Cap Fund offers strong long-term returns with 29.53% over 5 years and 18.16% over 10 years. However, it carries very high risk and underperforms its benchmark on risk-adjusted metricsET Money+1.
2.Is mid cap Mutual fund safe?
Mid cap mutual funds offer higher growth potential but come with elevated risk due to market volatility. They’re suitable for long-term investors with moderate to high risk tolerance.
3. Which mutual fund is best for long term SIP?
For long-term SIPs, ICICI Prudential Infrastructure Fund and SBI PSU Fund offer strong annualized returns over 29%. Motilal Oswal Midcap Fund is also a top performer with consistent equity growthGroww.