Investing in Mutual Funds (MFs) carries a degree of risk. Mid-cap MF schemes are seen as a strategic choice for diversifying a portfolio, as they invest in medium-sized companies with promising growth prospects. Nevertheless, these mutual funds come with a notable level of risk. While they are somewhat riskier than large-cap stocks, they are less risky compared to small-cap options.
Based on data from SMC, a prominent financial service provider in India, the list of the top 10 Mid-cap funds in India with the highest one-year returns includes HDFC Small Cap, Quant Small Cap, Franklin India Smaller Companies, Nippon India Small Cap, Tata Small Cap, HSBC Small Cap, ITI Small Cap, DSP Small Cap, Sundaram Small Cap, and Invesco India Smallcap.
The following are the leading 10 mid-cap funds that have demonstrated exceptional one-year performance:
- HDFC Mid-Cap Opportunities Fund-Growth, delivering a one-year return of 35.20%.
- Quant Mid Cap Fund-Growth, achieving a one-year return of 27.50%.
- Nippon India Growth Fund – Reg – Growth, with a one-year return of 27.40%.
- Motilal Oswal Midcap Fund – Reg – Growth, delivering a one-year return of 26.80%.
- Mahindra Manulife Mid Cap Fund – Reg – Growth, achieving a one-year return of 26.00%.
- Tata Mid Cap Growth Fund – Reg – Growth, with a one-year return of 24.10%.
- Invesco India Midcap Fund – Growth, delivering a one-year return of 23.70%.
- Franklin India Prima Fund – Growth, achieving a one-year return of 23.50%.
- SBI Magnum Midcap Fund – Growth, with a one-year return of 22.60%.
- Sundaram Mid Cap Fund – Reg – Growth, also achieving a one-year return of 22.60%.
Selecting an investment avenue is a deeply personal decision that hinges on factors such as risk tolerance, investment horizon, and financial goals. When considering investment options, key aspects to weigh include the investment objective, time frame, and risk appetite of the investors. Pankaj Mathpal, MD & CEO at Optima Money Managers, explained that while mid-caps and small-caps tend to display higher volatility compared to large-caps, they offer greater growth potential over the long term. For a investment horizon of 5-7 years, large-cap funds are typically more suitable, but incorporating mid-caps alongside large-caps in the portfolio is advisable.
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