Exploring the Top Mid-Cap Mutual Funds

A mid-cap fund is defined by investments made in companies that possess a market capitalisation of Rs. 5,000 crores to Rs. 20,000. Mid-cap funds are known to offer higher potential earnings as compared to large-cap mutual funds.

This is because mid-cap mutual funds have a higher growth potential, creating more room for return on investments. With reward comes risk; therefore, mid-cap investments are riskier when compared to their counterpart, although they carry a slightly lower risk than small-cap funds. 

Best Mid-Cap Mutual Funds: 

Here are some of the best mid-cap funds to invest in, along with their pros and cons. 

1. SBI Magnum Mid-Cap Fund: In contrast to the previous two funds mentioned in this list, the SBI Magnum Mid-Cap Fund manages a well-diversified portfolio containing equity stocks of Midcap companies. SBI Magnum Mid-Cap has offered higher returns above the average when compared to others in its category. It also carries a higher element of risk than the average but has consistently rewarded investors with profitable returns. 

2. Kotak Emerging Equity Scheme (Mid-Cap Fund): It is a mid-cap fund that has a well-diversified portfolio and carries a good risk-to-reward ratio. The fund managers focus on market capitalisation and a host of investment sectors to ensure good returns. Over the course of 16 years, Kotak Emerging Equity Scheme (G) Mid Cap has generated an annual return of 14.5%, making it a popular choice for mid-cap mutual fund investors. 

3. Mirae Asset Midcap Fund: Mirae Asset Midcap Fund has consistently performed, offering exposure to mid-sized companies with growth potential. Its skilled management team and diversified portfolio contribute to steady growth, making it appealing for long-term investors. It carries a slightly higher risk due to its focus on midcap stocks, subjecting investors to market volatility. Additionally, high expense ratios could impact overall returns.
4. Edelweiss Nifty Midcap150 Momentum 50 Index Fund: This fund tracks the Nifty Midcap150 Momentum 50 Index, providing exposure to potential high-performing midcap stocks. It offers diversification and lower expense ratios compared to actively managed funds. It may underperform during certain market conditions due to its index-tracking nature. Also, passive investing might limit opportunities for significant outperformance.

5. Nippon India Nifty Midcap 150 Index Fund: Investors benefit from diversification across mid-sized companies in the Nifty Midcap 150 Index. Low expense ratios make it a cost-effective option for gaining exposure to midcap stocks. It might not outperform actively managed funds during bullish market phases. Additionally, its performance can be impacted by index volatility and market fluctuations.

Conclusion
These are some of the best mid-cap mutual funds that are popular for many investors. If you are planning to invest in mid-cap funds, remember that you might need to wait a number of years to maximise your returns. However, id-cap funds can be highly volatile in the short and medium term. 

Therefore, on the whole, if you are an investor with a healthy risk appetite who is keen to earn higher returns, then mid-cap mutual funds might just be the way to go.