Mutual Funds · Mid cap
Mid-Cap Funds
SEBI mandate: minimum 65% in stocks ranked 101-250 by market cap. Higher growth potential than large-caps + higher volatility. Best for 7-10 year horizons. Typical 3-yr CAGR: 18-25%; can drawdown 25-35% in bear markets. Allocation: 20-30% of equity for most aggressive investors.
Who needs this
Investors with 7+ year horizon. Comfortable with 25-35% drawdowns. Already have a large-cap core in place (80%+).
Category at a glance
Min mid-cap allocation
65%
SEBI mandate
Stock universe
Top 101-250
By market cap
Typical 3-yr CAGR
18-25%
Category median
Expense ratio (direct)
0.7-1.5%
Higher than large-cap
Volatility (std dev)
20-26%
Higher than large-cap
Recommended horizon
7-10 yrs
To weather drawdowns
Top 5 mid-cap funds
Source: AMFI + AMC factsheets · refreshed quarterly
| Fund | AMC | Expense % | 3y CAGR |
|---|---|---|---|
| Kotak Emerging Equity | Kotak | 0.46% | 23.5% |
| Quant Mid Cap | Quant | 0.72% | 28.1% |
| Mirae Asset Midcap | Mirae | 0.65% | 21.4% |
| Motilal Oswal Midcap | Motilal Oswal | 0.68% | 24.7% |
| DSP Midcap Fund | DSP | 0.83% | 19.8% |
Key decisions
- Q1
Mid-cap or large-cap — which first?
Always large-cap first (foundation). Add mid-cap once large-cap allocation hits ₹3-5L. Solo mid-cap exposure for new investors is too volatile.
- Q2
Active or index?
Active still wins meaningfully in mid-cap (vs large-cap where index wins). Top active mid-caps beat Nifty Midcap 150 by 200-400 bps over 5 years.
- Q3
Lump-sum or SIP?
SIP only — mid-cap volatility makes lump-sum extremely timing-sensitive. SIP averages cost basis through cycles.
SEBI rules + scheme specifics
- Mid-cap = stocks ranked 101-250 by market capitalisation.
- Minimum 65% in mid-cap; max 35% in large or small.
- Benchmark: Nifty Midcap 150 TRI.
Read these next
Calculators + tools
All mutual funds
Recommended →Free MF Overlap Analyzer — see if your funds duplicate