Best Mid Cap Mutual Funds 2026
Mid Cap funds invest in companies ranked 101-250 by market cap — higher growth potential with moderate risk. 240 funds available on TopFund.
17.01%
Avg 3Y CAGR
What are Mid Cap Mutual Funds?
SEBI's mid cap mandate requires a minimum 65% allocation to companies ranked 101-250 by market capitalization — businesses that have already proven a working model and outgrown the small cap bracket, but haven't yet reached the scale, liquidity, and analyst coverage of a large cap. That's the appeal: many of today's large caps were yesterday's mid caps, and this category is where fund managers hunt for the next generation of market leaders.
The tradeoff is volatility that's meaningfully higher than large cap. Mid cap funds have gone through drawdowns of 30-40% in every major correction of the last decade — 2018's mid/small cap correction, March 2020, and 2022's rate-hike selloff all hit this category harder than large cap. Liquidity is also thinner: in a sharp selloff, mid cap stocks can be harder to exit at a fair price than large caps, which occasionally shows up as wider bid-ask spreads and higher tracking difficulty for the fund itself.
Because of this, mid cap is generally recommended as a satellite allocation layered on top of an existing large cap core, not as a standalone equity holding — and it needs a genuinely long horizon (7+ years) so the portfolio has time to ride out at least one full correction-and-recovery cycle.
Top Mid Cap Funds by Star Rating
Edelweiss Mid Cap Fund - Direct Plan - IDCW Option
Edelweiss Mutual Fund · Mid Cap
HSBC Midcap Fund - Direct Growth
HSBC Mutual Fund · Mid Cap
Edelweiss Mid Cap Fund - Regular Plan - IDCW Option
Edelweiss Mutual Fund · Mid Cap
Edelweiss Money Market Fund - Direct Plan - Annual - IDCW Option
Edelweiss Mutual Fund · Mid Cap
Edelweiss Overnight Fund - Direct Plan - Growth
Edelweiss Mutual Fund · Mid Cap
Edelweiss Focused Fund - Direct Plan - IDCW
Edelweiss Mutual Fund · Mid Cap
Edelweiss Money Market Fund - Direct Plan - IDCW Option
Edelweiss Mutual Fund · Mid Cap
Taurus Mid Cap Fund - Regular Plan - Growth
Taurus Mutual Fund · Mid Cap
Invesco India - Invesco EQQQ Nasdaq-100 ETF Fund of Fund - Direct Plan - Growth
Invesco Mutual Fund · Mid Cap
Edelweiss Focused Fund - Direct Plan - Growth
Edelweiss Mutual Fund · Mid Cap
Frequently Asked Questions
What are Mid Cap mutual funds?
Mid Cap mutual funds invest in companies ranked 101-250 by market cap — higher growth potential with moderate risk.
What is the minimum investment in Mid Cap funds?
Most Mid Cap funds allow SIP starting from ₹500/month or ₹1,000 lumpsum. Some funds have lower minimums of ₹100 via SIP.
Are Mid Cap mutual funds safe?
Equity mutual funds carry market risk — your investment value can go up or down with the market. They are suitable for long-term goals (5+ years) where temporary volatility is acceptable.
How are Mid Cap fund returns taxed?
Gains held for more than 1 year are Long Term Capital Gains (LTCG) — ₹1L exempt, 10% above that. Short-term gains (held < 1 year) are taxed at 15% (STCG).
What percentage of my portfolio should be in mid cap funds?
There's no universal number, but a common framework is to keep mid cap to 15-25% of your total equity allocation, layered on top of a large cap or flexi cap core — large enough to meaningfully boost long-term returns, small enough that a mid cap-specific drawdown doesn't derail your overall plan.
Is mid cap riskier than small cap or less risky?
Mid cap sits between large and small cap on the risk spectrum by design — SEBI's own market-cap definitions rank it there. It's more volatile than large cap but has historically shown somewhat better liquidity and slightly shallower drawdowns than small cap, since mid cap companies are larger and more established.