Midcap and Smallcap mutual funds have witnessed a heightened investors interest, especially in the month of June. While the Association of Mutual Funds in India (AMDI) indicated a significant surge in mutual fund inflow in June, it also indicated that the jump in inflows was supported by demand for midcap and small cap mutual funds.
“India’s Mutual fund industry rolled out Impressive data sets for June Month, Net inflow of 49,095 crore, 66% jump over May. Equity funds did especially well with 23,587 crore in inflows, thanks to strong interest in Flexi Cap, small-cap, and mid-cap funds. Trends indicates surging equity fund investments, hybrid allocations,” noted Narender Singh, smallcase Manager and Founder of Growth Investing.
Net inflow in midcap mutual funds increased to Rs 3754.42 crore in June 2025 from Rs 2,808.68 crore in May 2025, according to AMFI data released on Wednesday. Meanwhile, most of the midcap stocks have outperformed in the month of June.
“Open-ended Equity Mutual funds grew by 4% primarily due to continuous inflows and MTM gains. The rising inflows snapped a 5-month streak of lower sequential inflows. All equity categories saw net inflows during the month, except ELSS funds, which recorded outflows for the third straight month, signalling diminishing investor interest in the current tax-saving environment. Additionally, during June 2025, 20 open-ended NFOs were floated, which collectively mobilised Rs.0.02 lakh crore with index funds accounting for 35% share,” stated Sanjay Agarwal, Senior Director, CareEdge Ratings
Over the last 12 months, largecaps and midcaps have gained 6% and 7%, respectively, outperforming smallcaps, which have risen 4%. During the last five years, midcaps (CAGR: 32.4%) have significantly outperformed largecaps (CAGR: 19.9%) by 158%, while smallcaps (CAGR: 32.8%) have markedly outperformed largecaps by 165%, according to Motilal Oswal report.
What Are Midcap Mutual Funds?
Mid-cap mutual funds target companies with medium market capitalization, typically ranked between 101 and 250. These funds focus on long-term capital growth by investing in mid-sized firms with significant growth potential. They offer a balance between the stability of large-cap funds and the growth potential of small-cap funds, making them an attractive option for investors.
Investors looking for capital appreciation over the long term may find mid-cap funds appealing due to their moderate to high-risk profile. These funds invest in companies that are neither as established as those in large-cap funds nor as emerging as those in small-cap funds. This unique positioning allows them to potentially offer higher returns.
Top Performing Midcap Mutual Funds
As the trend indicates a heightened investors interest in midcap mutual funds, here are the top performing products in the segment. According to AMFI data, these top midcap mutual funds have given nearly 30% returns in three years.
| Scheme Name | Benchmark | 3-Year Return (%) – Regular | 3-Year Return (%) – Direct | 3-Year Return (%) – Benchmark |
|---|---|---|---|---|
| Motilal Oswal Midcap Fund | Nifty Midcap 150 TRI | 32.68 | 34.11 | 28.61 |
| HDFC Mid Cap Fund | Nifty Midcap 150 TRI | 31.34 | 32.22 | 28.61 |
| Invesco India Mid Cap Fund | BSE Midcap 150 TRI | 31.13 | 32.82 | 27.83 |
| Edelweiss Mid Cap Fund | Nifty Midcap 150 TRI | 29.78 | 31.63 | 28.61 |
| Nippon India Growth Mid Cap Fund | Nifty Midcap 150 TRI | 29.21 | 30.25 | 28.61 |
| Mahindra Manulife Mid Cap Fund | Nifty Midcap 150 TRI | 28.33 | 30.30 | 28.61 |
| Sundaram Mid Cap Fund | Nifty Midcap 150 TRI | 28.24 | 29.33 | 28.61 |
| Franklin India Prima Fund | Nifty Midcap 150 TRI | 27.54 | 28.59 | 28.61 |
| ITI Mid Cap Fund | Nifty Midcap 150 TRI | 27.30 | 29.71 | 28.61 |
| HSBC Mid Cap Fund | Nifty Midcap 150 TRI | 26.49 | 27.88 | 28.61 |
| Kotak Midcap Fund | Nifty Midcap 150 TRI | 26.04 | 27.46 | 28.61 |