Top 5 Mid‑Cap Funds for 2025

Mid‑cap mutual funds offer a compelling balance of higher returns than large‑caps, with less volatility than small‑caps. If you’re exploring best mutual funds for capital appreciation without excessive risk, mid‑caps deserve a look. Here’s our pick of the best mid cap mutual funds for 2025.

What Makes Mid‑Cap Funds Stand Out?

• Growth trajectory: Mid‑caps are often tomorrow’s large‑caps, riding the next wave of expansion.
• Potentially higher returns: Historically, mid‑cap equity funds have delivered 5‑year annualised returns north of 25%
• Balanced risk: They offer more growth than large‑caps, but less volatility than small‑caps, ideal for investors with 7–10‑year horizons.
  

Evaluating Mid‑Cap Mutual Funds

To identify the best mutual funds in this category, we focused on:

1. 5‑year CAGR – Indicates consistency.
   
2. Assets under management (AUM) – Reflects investor trust and liquidity.
   
3. Expense ratio – Lower costs boost investor returns.
   
4. Fund manager’s track record – Their ability to ride cycles is key.
   
5. Portfolio diversification – Exposure across sectors adds stability.
   

Top 5 Mid‑Cap Funds for 2025

Fund Name	5‑Yr CAGR	AUM*	Expense Ratio	Manager(s)	Notes
Motilal Oswal Midcap Fund	~37.3%	₹33,053 Cr	0.68%	Niket Shah, Rakesh Shetty	Established & diversified portfolio
Nippon India Growth Mid Cap Fund	~33.3%	–	~0.71%	–	Consistent top-25 performer
HDFC Mid Cap Fund	~33.3%	–	~0.75%	–	Strong large‑cap anchors in volatile phases
Quant Mid Cap Fund	~33.45%	–	~0.64%	–	Systematic, data‑driven approach
SBI Contra Fund (Mid‑Cap Focus)	~33.8%	–	~0.68%	–	Deep value tilt, contrarian style

* AUM is listed where available.

Why These Are the Best Mid Cap Mutual Funds

1. Motilal Oswal Midcap Fund
   
   • 5‑year CAGR of 37.3%, expense ratio of 0.68% 
   • Portfolio spans sectors: tech, consumer, capital goods—targets future growth engines.
     
   • Managed by experienced team adept at mid‑cap cycles.
     
2. Nippon India Growth Mid Cap Fund
   
   • 33.3% CAGR places it among top performers
   • Robust stock selection and long-term focus.
     
3. HDFC Mid Cap Fund
   
   • Also around 33.3% CAGR
   • AUM and expense ratio balances performance and cost efficiency.
     
4. Quant Mid Cap Fund
   
   • 33.45% CAGR; known for algorithmic stock-picking 
   • Lower expense ratio (0.64%), making it one of the best mutual funds value-wise.
     
5. SBI Contra Fund
   
   • 33.8% CAGR through a value-oriented, contrarian strategy
   • Adds diversity by capitalizing on under‑owned quality stocks.
     

How to Use These Best Mid Cap Mutual Funds in Your Portfolio

• Diversify across strategies: Blend growth‑oriented (e.g. Motilal, Nippon) with value‑oriented (e.g. SBI Contra).
  
• Use via SIP: Monthly investing helps average out volatility.
  
• Hold long-term: Minimum 5‑year horizon recommended to smooth market bumps.
  
• Monitor annually: Review performance and rebalance if your allocation drifts 10%+ from your target.

Risks of Mid‑Cap Investments

• Higher volatility: Mid‑caps dip more than large‑caps during downturns.
  
• Liquidity risk: Smaller companies may be harder to trade during market stress.
  
• Concentration risk: Top‑holding bias may increase exposure—hence portfolio diversification is key.
  

Final Takeaway

If you’re seeking growth beyond large caps without embracing small‑cap swings, these best mid cap mutual funds, Motilal Oswal, Nippon India, HDFC, Quant, SBI Contra—deserve serious attention. They blend strong 5‑year performance, reasonable costs, and solid fund management.

Top 5 Mid‑Cap Funds for 2025 offer a compelling mix of performance and prudence. Evaluate your risk profile, diversify across strategies, invest via SIP, and stay the course for optimal long-term wealth creation.

This blog is for informational purposes and not financial advice. Always consult a certified advisor before investing in mutual funds.