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Motilal Oswal Midcap Fund and Invesco India Midcap Fund lead in long-term returns.
HDFC Mid Cap Fund continues to deliver stable performance with high AUM strength.
Cost-efficient options like Kotak and Edelweiss Mid Cap Funds offer competitive returns.
Investors are mainly interested in the mid-cap segment because it provides potential for long-term growth compared to large-cap funds. Mid-cap companies usually work in the expansion phase of their business lifecycle. This offers both stability and high growth potential.
December 2025 is an excellent opportunity to study some of the top mid-cap mutual funds based on assets under management (AUM), expense ratio, and historical returns. This article lists them to simplify your research.
Motilal Oswal Midcap Fund manages an AUM of Rs. 37,500.86 crore and has an expense ratio of 0.72%. Even though the fund faced a difficult short-term phase with a -6.70% one-year return, it shows strong long-term performance.
Its 3-year CAGR is 25.83%, while its 5-year CAGR is even higher at 30.68%. This emphasizes the fund’s ability to provide significant profits during broader market upcycles. The short-term drop may reflect temporary market volatility rather than structural issues. This makes the fund a high-growth option for long-term portfolios.
Edelweiss Mid Cap Fund, with an AUM of Rs. 12,646.93 crore, combines affordability and consistent performance through a low expense ratio of 0.40%. The fund shows stable results with a 1-year return of 3.33%, a strong 3-year CAGR of 25.60%, and a 5-year CAGR of 27.41%.
This consistency shows disciplined fund management and allocation strategy. The fund is for investors who want mid-cap exposure with moderate risk.
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HDFC Mid Cap Fund is one of the largest schemes in the category with a massive AUM of Rs. With an expense ratio of 0.71%, the fund provides decent returns supported by its diversified mid-cap portfolio.
Investors have received a 6.52% return over the past year, a 3-year CAGR of 25.39% and a 5-year CAGR of 26.91%. The scale of the fund suggests strong investor confidence, while long-term performance strengthens its position as a reliable mid-cap option.
Invesco India Midcap Fund manages Rs. 9,319.87 crore in AUM and has an expense ratio of 0.54%. The scheme stands out with one of the strongest recent performances, posting an 8.91% one-year return.
It further strengthens its profile with 3-year and 5-year CAGRs of 27.57% and 26.83%, respectively. This combination of strong short-term and consistent long-term returns highlights the fund’s dynamic stock-picking approach and ability to generate alpha across market cycles.
Nippon India Growth Mid Cap Fund has an AUM of Rs. 41,267.69 crore and an expense ratio of 0.74%. The fund recorded a 1-year return of 2.50%, supported by a 3-year CAGR of 24.11% and a 5-year CAGR of 26.63%.
Its long operating track record and experience in managing mid-cap allocations make it a widely followed choice. The numbers reflect steady growth, especially for investors focusing on a disciplined, long-term approach.
Mahindra Manulife Mid Cap Fund manages an AUM of Rs. 4,192.44 crore with a low expense ratio of 0.46%. Although the fund saw a 1-year return of -0.87%, its long-term record remains strong with a 3-year CAGR of 24.25% and a 5-year CAGR of 26.57%. The near-term decline may be due to market pressure, but the fund has shown consistent performance.
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Quant Mid Cap Fund is popular for its aggressive approach. The fund has an AUM of Rs. 8,525.04 crore and an expense ratio of 0.75%. It reported a -5.78% return over the past year. However, the longer-term growth is strong, with 3-year and 5-year CAGRs of 16.02% and 25.46%, respectively. The fund is suitable for bold mid-cap investors.
Sundaram Mid Cap Fund manages Rs. 13,235.84 crore in AUM and carries an expense ratio of 0.92%. The fund provided a 3.46% one-year return, a 3-year CAGR of 23.99%, and a 5-year CAGR of 24.76%.
These numbers show steady returns in different market periods. The fund offers a traditional mid-cap style and focuses on fundamentally strong companies capable of long-term expansion.
Kotak Midcap Fund has a sizable AUM of Rs. 60,385.03 crore and one of the lowest expense ratios in the category at 0.37%. With a 1-year return of 0.88%, a 3-year CAGR of 21.24%, and a 5-year CAGR of 24.41%, the fund offers stable growth at minimal cost. Its disciplined management framework supports consistent performance. This makes Kotak Midcap Fund a decent choice for long-term wealth creation.
Mirae Asset Midcap Fund manages Rs. 18,112.14 crore in AUM with an expense ratio of 0.56%. Investors have gained 6.45% over the past year, a 3-year CAGR of 20.62%, and a 5-year CAGR of 24.27%. Its balanced, research-driven approach positions it as a dependable option in the mid-cap space.
Mid-cap mutual funds offer many choices, each with different cost structures and performance trends. Funds such as Invesco India Midcap Fund and Motilal Oswal Midcap Fund have strong long-term growth potential.
On the other hand, schemes like Kotak Midcap Fund and Edelweiss Mid Cap Fund are pocket-friendly and provide steady results. December 2025 is a great time to explore mid-cap mutual fund investments, especially for long-term growth. You can diversify your portfolio and gain exposure to promising new companies in the Indian market.
1. What are mid-cap mutual funds?
Mid-cap mutual funds invest primarily in mid-sized companies that offer a balance of growth potential and moderate risk.
2. Are mid-cap funds suitable for long-term investment?
Yes, mid-cap funds generally perform well over the long term due to the growth trajectories of mid-sized companies.
3. Which mid-cap funds currently show strong long-term returns?
Motilal Oswal Midcap Fund, Invesco India Midcap Fund, and Edelweiss Mid Cap Fund display strong multi-year CAGR performance.
4. Do mid-cap funds carry high risk?
Mid-cap funds carry higher risk than large-cap funds but lower risk compared to small-cap funds, making them a mid-level risk option.
5. How should mid-cap funds be selected?
Historical returns, expense ratio, fund size, and consistency across market cycles help in evaluating the right mid-cap fund.
