Best Mid-Cap Mutual Funds in India - Checkout for Optimal Growth
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Mid-cap mutual funds, as the name suggests, primarily target companies with medium market capitalisation, falling within the range of listed stocks. They strike a delicate balance between risk and potential returns, which greatly appeals to investors.

The bestmid-cap mutual funds offer a unique advantage, combining growth potential with lower volatility compared to small-cap funds. These funds are particularly well-suited for aggressive investors with a high risk tolerance seeking long-term growth opportunities. Investing in mid-cap mutual funds can be a key strategy to achieve favourable returns. This blog will present a list of the best mid-cap mutual funds available in India, along with other crucial information.

Features of Best Mid-Cap Mutual Funds

Features of the best mid-cap mutual funds include:

Growth capabilities: Mid-cap funds have growth capabilities. It invests in middle-sized businesses. Medium-sized companies’ stocks have the highest margins that can generate greater returns.

Diversified portfolio: Mid-cap mutual funds invest in a broad basket of stocks comprising medium-sized firms.

Risk and reward balance: Investing in mid-cap funds entails either high or low-risk strategies. It provides risk-taking investors with higher possible returns.

Advantages of Investing in the Best Mid-Cap Mutual Funds

Investing in mid-cap mutual fund offers the following benefits:

  • Greater growth: They have the capability of showing more growth among the mid-cap companies. This enables you to earn higher returns.
  • Minimal risk compared to small-cap funds: As compared to small-cap funds, you will find mid-cap funds less unstable. It provides an appropriate level of risk and reward for your portfolio.
  • Low investment amount: This enables investors to invest in mid-cap funds using an amount as small as ₹500.

How Mid-Cap Funds Work?

Kotak's mid-cap mutual funds work by investing in mid-sized companies. These companies are generally ranked between 101 to 250 in terms of market capitalisation. These ranks are classified by the regulatory authority named the Securities and Exchange Board of India (SEBI). SEBI classifies these ranks based on various factors. These ranks help in providing transparency and investor protection.

Who Should Invest in the Best Mid-Cap Mutual Funds?

Investing in the best mid-cap mutual fund is suitable for the following investors:

  1. High risk-takers: It is suitable for investors who are willing to take more risk for higher returns.
  2. Investors with long-term goals: It best fits those with medium to long term investment goals.
  3. Diversification seekers: Mid-cap funds are suitable for investors seeking to diversify their portfolio beyond large-cap investment.
  4. Experienced investors: Mid-cap mutual funds work best for investors who understand the market dynamics and can handle market volatility.

Things to consider before investing in the best mid-cap mutual funds

Before diving into the world of the best mid-cap mutual funds, there are essential considerations to keep in mind:

  1. Risk Tolerance: Assess your risk tolerance. Mid-cap funds can be more volatile than large-cap ones, so ensure they align with your comfort level.
  2. Investment Goals: Clearly define your objectives – whether it's long-term growth or income generation.
  3. Fund Performance: Research and choose funds with a consistent track record of performance.
  4. Expense Ratios: Keep an eye on fees and charges. A lower expense ratio can boost your returns.

How to Start Investing Online in the Best Mid-Cap Funds

To start investing in mid-cap mutual funds, you need to follow these easy steps:

1. Select a reliable platform

Select a trusted and established platform like Kotak, which is known for its reliability and security in handling investments.

2. Register

Register and create an account by entering your basic details. Complete KYC requirements by submitting valid documents.

3. Invest online

Complete the transaction by entering the amount and making payments securely. You can invest digitally in mutual funds with Kotak. Our process is completely digital. It involves minimal paperwork.

Limitations of Mid-Cap Funds

Mid-cap mutual funds come with disadvantages like -

  1. It can be more unstable than large-cap funds.
  2. It can put investors at risk due to market fluctuations.
  3. Mid-cap funds may have low trading volumes. This may create issues while buying or selling shares.

Frequently Asked Questions

Q; Which is the best mid-cap fund in India?

HDFC Large and Mid Cap Fund is one of India's best mid-cap mutual funds.

Q: Which is a good mid-cap fund?

Mid-cap funds available on the Kotak Mutual Funds platform are some of the best in the industry to invest in. They are known for their consistent performance and growth.

Q: How to invest in mid-cap mutual funds online?

Investing in Kotak mid-cap funds is easy. All you need to do is visit our website or app, register and enter an amount. Make payments, and it's done.

Q: Can mid-cap mutual funds pay dividends?

Yes, mid-cap mutual funds can pay dividends to investors. These dividends are generally distributed from the profits earned by the fund.

Q: How to choose the correct mid-cap funds to invest in?

To choose the correct mid-cap funds, consider factors like -

  • Risk tolerance
  • Investment goals
  • Fund performance
  • Expense ratios.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.