Top 4 Mid-Cap Mutual Funds: Leading Fund Turns ₹10 Lakh into ₹44 Lakh in 5 Years

Mid-cap equity funds invest in stocks of medium-sized companies, which are still in the development phase. While they carry more risk than large-cap funds, they offer higher growth potential. However, they are generally less risky than small-cap stocks, making them an attractive option for investors seeking a balance between risk and returns.

Mid-Cap Fund Inflows Decline in February

According to recent data from the Association of Mutual Funds in India (AMFI), inflows into mid-cap funds dropped to ₹3,407 crore in February 2025, a sharp decline from ₹5,148 crore in January 2025. The fall in inflows can be linked to the recent market volatility and a notable sell-off in the mid-cap index from its highs.

While short-term fluctuations can impact investor sentiment, long-term investment strategies are crucial for navigating the mid-cap category. Historically, mid-cap funds have demonstrated strong growth potential over extended periods.

Top Performing Mid-Cap Mutual Funds Over 5 Years

Despite recent volatility, several mid-cap mutual funds have delivered impressive returns, with some achieving over 30% CAGR in the past 5 years.

Note: Data as of March 12, 2025. 

The highest-performing mid-cap fund in the category, Quant MidCap , has transformed a ₹10 lakh investment into approximately ₹44 lakh in just five years, reflecting a 34.46% CAGR. While past performance does not guarantee future results, these figures highlight the potential of mid-cap funds over the long run.

Conclusion

As mid-cap investments remain subject to market conditions, investors often benefit from a disciplined and long-term approach rather than reacting to short-term volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.