While large cap funds remain stable in valuation, they traditionally offer limited potential of growth. On the other hand, small cap mutual funds hold maximum potential for growth, but face a greater degree of volatility in their prices.
Mid cap funds, whereas, lie somewhere in the middle. They offer a greater scope of growth but face a less moderate degree of volatility.
But before we elaborate more on the returns given by these funds, let us explain what are mid cap funds?
Mid cap funds
Mid cap funds are those mutual funds that invest a minimum of 65 percent in mid-cap stocks. The companies from ranking 101 to 250 in terms of market capitalisation are known as mid cap companies.
As of now, there are a total of 29 mid cap fund schemes with total assets under management (AUMs) of ₹1,83,246 crore as on Feb 29, 2023, shows AMFI (Association of Mutual Funds in India) data.
A mutual fund scheme’s worth can be assessed by a number of factors which entail the fund category, reputation of fund house, and the past returns the scheme has delivered.
Each factor has its own importance, the returns given by these schemes are an important consideration, particularly for new investors who give it far more importance than to the other factors.
There are four mutual fund schemes that have given more than 19 percent return in the past 10 years.
| Mid cap funds | 10-year-returns (%) |
| Edelweiss Mid Cap Fund | 19.61 |
| HDFC Mid-Cap Opportunities Fund | 19.03 |
| Kotak Emerging Equity Fund | 19.88 |
| SBI Magnum Midcap Fund | 19.02 |
| HSBC Midcap Fund | 18.21 |
| Invesco India Mid Cap Fund | 18.21 |
| Tata Midcap Growth Fund | 18.53 |
| UTI Mid Cap Fund | 18.86 |
(Source: AMFI, regular returns as on March 27, 2023)
As we can see in the table above, there are four fund schemes that gave more than 19 percent return in the past one decade.
Edelweiss Mid Cap Fund delivered 19.61 percent, HDFC Mid-Cap Opportunities Fund gave 19.03 percent return, Kotak Emerging Equity Fund gave 19.88 return and SBI Magnum Midcap Fund gave 19.02 percent return.
Here, we now share details on the mid cap funds that gave maximum returns:
Edelweiss Mid Cap Fund: It was launched on December 26, 2007. Its key constituent stocks include Cummins India, Federal Bank, Persistent Systems, Clearing Corporation of India and ABB India.
The scheme has given a CAGR return of 11.04 percent since inception. This means if someone had invested ₹10,000 at that time, it would have grown to ₹49,692 by now.
HDFC Mid-Cap Opportunities Fund: The scheme was launched on June 25, 2007. It has given a return of 16.17 percent since its inception. This means if someone had invested ₹10,000 that time, it would have grown to ₹1,02,516.
The key constituent stocks of the scheme are Indian Hotels Company, Bharat Electronics, Max Healthcare Institute, Sundram Fasteners and Cholamandalam Investment and Finance.
Kotak Emerging Equity Fund: This scheme was launched on March 30, 2007. With an AUM of nearly ₹23,962 crore, the scheme has given a return of 19.04 percent return since inception.
This means if someone had invested ₹10,000, it would have grown to ₹59,597.
Its key constituent stocks are Supreme Industries, Schaefflar India, Cummins India, Persistent Systems and Solar Industries.
SBI Magnum Midcap Fund: It was launched on March 29, 2005. Its key constituent stocks include CRISIL, Tube Investments of India, Page Industries, Schaeffler India and Sheela Foam.
It has given a return of 16.18 percent CAGR return (regular) since inception.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
