Top Mid Cap Funds for SIP in 2025
Mid cap mutual funds invest in medium-sized companies that have
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What is a Mid Cap Fund?
Mid-cap funds are a type of equity funds that invest at least 65% of their money in companies ranked 101-250 by market capitalization. These funds target mid-sized companies with good growth potential. These companies have a market capitalization generally ranging from ₹5,000 crore to ₹20,000 crore. Mid-cap funds offer a balance of growth and stability.
- Objective: Mid-cap funds aim to provide higher returns than large-cap funds while presenting less risk than small-cap funds.
- Benefit: They offer a mix of growth potential and stability, ideal for medium-term investors.
- Suitable For: Suitable for investors with a moderate risk appetite and long-term goals. They are ideal for investors who are looking for growth opportunities without the extreme volatility associated with smaller companies.
Top Mid Cap Funds for SIP in 2025
Some of the top-performing mid-cap funds for SIP in 2025 based on returns, portfolio quality, and fund manager performance, are as follows:
Details of Top Mid Cap Mutual Funds for SIP in 2025
Below are the details of best SIP plans for SIP in 2025:
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Nippon India Growth Mid Cap Fund Direct- Growth
The primary investment objective is to achieve long-term growth of capital by investing in equity and equity-related securities through a research-based investment approach.
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HDFC Mid Cap Fund Direct-Growth
The scheme seeks to generate long-term capital growth from an actively managed portfolio primarily invested in equity and equity-related securities.
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Motilal Oswal Midcap Fund Direct-Growth
The investment objective is to achieve long-term capital appreciation by investing in quality mid-cap companies with long-term competitive advantages and growth potential.
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Invesco India Mid Cap Fund Direct-Growth
The objective is to generate capital appreciation by investing predominantly in mid-cap companies.
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Axis Midcap Direct Plan-Growth
The scheme seeks long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies.
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ICICI Prudential Midcap Direct Plan-Growth
The primary objective is to generate capital appreciation by actively investing in diversified mid-cap stocks.
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Kotak Midcap Fund Direct-Growth
The investment objective is to generate long-term capital appreciation from a portfolio of equity and equity-related securities, predominantly in mid-cap companies.
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SBI Mid Cap Direct Plan-Growth
The scheme aims to provide long-term capital growth by investing predominantly in a well-diversified basket of equity stocks of mid-cap companies.
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Franklin India Mid Cap Fund Direct-Growth
The fund targets medium to long-term capital appreciation as a primary objective by investing predominantly in mid-sized companies.
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Mirae Asset Midcap Fund Direct - Growth
The scheme seeks to achieve long-term capital appreciation through investments primarily in mid-cap equity and equity-related instruments.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
13.96% |
13.51% |
|
| HDFC Life |
19.5% |
16.12% |
|
| Axis Max Life |
22.7% |
22.42% |
|
| ICICI Prudential Life |
16.72% |
15% |
|
| Tata AIA Life |
29% |
23.3% |
|
| Bajaj Life |
17.94% |
14.59% |
|
| Birla Sun Life |
19.5% |
16.47% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
13.61% |
11.93% |
|
| Star Union Dai-ichi Life |
15.2% |
- |
|
Fund rating powered by
Last updated: Nov 2025
How Does Mid Cap Funds Work?
Mid cap funds are a type of mutual fund that primarily invests in mid-sized companies, which are defined by their market capitalization.
Let us learn a brief overview of how they operate from the following:
- Focus on Mid-Sized Companies: They invest in companies ranked 101-250 by market size.
- Growth Potential: These companies are expanding and may grow faster than large companies.
- Risk and Returns: They are riskier than large-cap funds but safer than small-cap funds, offering good long-term returns.
- Diversification: Investing in many companies reduces the risk of poor performance by one.
- Active Management: Fund managers choose mid-cap companies with strong growth prospects.
- Tax Benefits: You get tax deductions on premiums paid in ULIP Plans under Section 80C, and maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act, 1961.
- Ideal for Long-Term: Best for investors with medium to high risk tolerance and long-term goals.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
13.09%
Equity Pension
15.9%
Opportunities Fund
19.1%
Pension Growth Super
13.28%
Opportunities Fund
21.11%
Multi Cap Fund
14.3%
Accelerator Mid-Cap Fund II
15.9%
Multiplier
14.77%
Frontline Equity Fund
18.41%
Pension Mid Cap Fund
11.26%
Equity II Fund
14.8%
US Equity Fund
15.13%
Growth Opportunities Plus Fund
11.77%
Equity Top 250 Fund
14.22%
Future Apex Fund
12.11%
Pension Dynamic Equity Fund
14.55%
Pension Enhanced Equity
Who Should Invest in Mid-Cap Funds?
Mid-cap funds are suitable for investors seeking higher returns and willing to take moderate risks:
- Growth-Oriented Investors: Ideal for those looking to invest in companies with high growth potential.
- Medium to High-Risk Tolerance: Suitable for investors who can handle market ups and downs.
- Long-Term Goals: Best for those with an investment horizon of 5-10 years or more.
- Wealth Accumulation: Suitable for building wealth over time, especially for future needs like buying a home or retirement.
- Portfolio Diversification: A good investment option for diversifying portfolios that already include large-cap or small-cap funds.
- Experienced Investors: Ideal for those familiar with market trends and willing to take calculated risks.
Tax on Mid-Cap Funds in 2025
In 2025, the taxation structure for mid-cap funds has undergone some changes that investors should be aware of:
- Short-Term Capital Gains (STCG): If you sell your mid-cap fund units within 12 months, the gains are taxed at 20%. This is an increase from the previous rate of 15% as per the latest budget proposals.
- Long-Term Capital Gains (LTCG): For units held longer than one year, the gains are taxed at 12.5%, up from 10%. However, this rate applies only if your gains exceed ₹1.25 lakh in a financial year.
- Impact of Holding Period: The holding period for classifying gains as long-term remains at 12 months. This means that investors need to be mindful of their investment duration to optimize tax liabilities.
- No Indexation Benefits: The revised LTCG tax does not allow for indexation benefits, which could affect the overall tax efficiency of long-term investments in mid-cap funds.
Benefits of Investing in Mid Cap Funds for SIP
The key benefits of investing in a mid cap funds for a SIP plan are as follows:
- High Growth Potential: Mid-cap companies are in their expansion phase and can deliver higher returns over the long term.
- Cost Averaging: SIP investments spread across market cycles, reducing the impact of market volatility.
- Disciplined Investing: SIP ensures regular, small investments, promoting financial discipline.
- Diversification: These funds invest in a range of mid-cap stocks, reducing the risk of reliance on a single company.
- Affordable Entry: SIPs allow starting with as little as ₹500–₹1,000 per month, making them accessible.
- Long-Term Wealth Creation: Ideal for investors seeking significant wealth creation over 5–10 years.
- Risk-Reward Balance: They strike a balance between higher returns (compared to large caps) and moderate risk.
Conclusion
Mid-cap funds can be a great option for SIP investments in 2025. They offer the potential for strong growth by investing in promising companies. Look for funds with a good track record and experienced managers. Make sure the fund matches your financial goals. Regularly review your investments and stay focused on the long term to get the best returns. SIP in mid-cap funds can help you grow your wealth while managing risks.
FAQ's
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What is the mid-cap fund in SIP?
A mid-cap fund in SIP invests in medium-sized companies with market values between ₹5,000 crores and ₹20,000 crores. It aims for growth over time.
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What is the difference between small-cap and mid-cap SIP?
Small-cap SIPs invest in smaller companies (ranked 251st and below), which are riskier. Mid-cap SIPs invest in medium-sized companies (ranked 101st to 250th) and are generally less risky.
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Which cap is best for SIP?
The best cap for SIP depends on your risk appetite. Large-cap funds are safer, small-cap funds can offer high returns but are riskier, and mid-cap funds balance growth with moderate risk.
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Which is better: Flexi Cap or Midcap fund?
Flexi Cap funds are better for flexibility because they can invest in all types of companies. Mid-cap funds focus only on medium-sized companies, which can offer good growth but may be more volatile.
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Is it good to invest in mid-cap funds?
Yes, investing in mid-cap funds can be good for growth with moderate risk. They usually provide higher returns than large-cap funds but are less stable than small-cap funds.
