Best Mid Cap Mutual Funds to Invest in 2024

What are the best mid cap mutual funds in India right now? Well, determining the top or the best mid cap funds to invest in depends on various factors such as your investment goals, risk tolerance, investment horizon, and personal preferences. However, some types of mid cap mutual funds have outperformed their benchmark index in one year.

Equity mutual funds that have outperformed their benchmark index are those whose returns have surpassed the benchmark index’s performance against which they are measured. This means these funds have generated higher returns for their investors than the overall market or a specific index they aim to track.

Understanding Mid Cap Mutual Fund

Mid cap funds, as the name suggests, are mutual funds that invest at least 65% of their fund corpus in companies with a medium market capitalization.

market capitalization refers to the total value of a company’s outstanding shares and is calculated by multiplying the company’s share price by the number of shares outstanding. If you rank all the companies in decreasing order of their market capitalization, all companies in the 101-250 range are classified as mid-cap companies.

Mid cap funds aim to strike a balance between the growth potential of small cap stocks and the stability of large cap stocks. They invest in companies that have shown promising growth potential but may not have reached the size and stability of their large cap counterparts.

What is Mid Cap Fund?

As the name implies, a mid-cap company falls in the middle between large-cap (or big-cap) and small-cap companies. Classifications such as large-cap, mid-cap, and small-cap are only approximations and may change over time. That invests in the stock of mid-sized companies (with market caps above ₹5,000 crore but less than ₹20,000 crore).

Best 5 Performing Mid-Cap Mutual Funds:

In the mid-cap segment, several funds have performed well. Let’s look at some of the top-performing mutual funds helming the mid-cap category. The performance is based on returns provided by the fund in the last 3 and 5 years, assert size and fund ranking in that category

*Data as on 5th May 2024

Who Should Invest in Mid Cap Mutual Funds?

Mid cap mutual funds are suitable for investors who:

Have a Moderate to High-Risk Appetite

It is suitable for investors who are open to a moderate to high risk in their investment. Mid cap funds, unlike large-cap funds, do not have a low-risk ratio. Neither do they have a high risk like small cap funds; therefore, it is somewhere in the middle. It can be best suitable for investors who have a moderate to high-risk appetite.

Have Long-Term Goal

These funds are known to perform well over a long period of time; therefore, investors who are open to investments in the long term can invest in mid cap funds.

Want to Start with Small

Investments in the mid cap funds can be started with a small amount. These investments can start as small as Rs.500/-.

Learn more about Advantages and Disadvantages of Owning Mutual Funds