What Are Mid-Cap Mutual Funds? 10 Best Mid-Cap Funds to Invest in 2022

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Introduction

The number of mid-size companies is increasing each day, all thanks to the startups gaining momentum lately. Besides, with so many new investment options, these businesses can scale their operations and expand both horizontally and vertically. From VCCs to angel investors, the chances are never-ending. However, the concept of mid-cap mutual funds has created a buzz in the market.

As the name suggests, a mid-cap mutual fund is an equity fund where one invests in businesses having medium-scale market cap and valuation. These businesses hit multiple local markets simultaneously and have balanced profit margins and turnover time. But they are yet to receive exposure to the international markets. Due to the vast number of mid-sized companies and businesses, several new funds are in the market. The following article will highlight the best mid-cap mutual funds to invest in in 2022.

Why One Should Invest in a Mid-Cap Mutual Fund?

Before learning more about the best-performing mid-cap mutual funds, it is better to understand the advantages of such an investment type over others.

Given that most mid-cap funds have long holdings in the market, the returns on investments are more commendable compared to the large-caps (businesses that have a market cap of Rs. 20,000 or more.)
Most mid-cap companies have room for growth for the coming decade, while large-cap companies will soon reach a stagnation point.
Thanks to the focus on the market niche and sheer dedication, these companies can quickly adapt to market innovations and transformations. As a result, the companies’ chances of going out of the race are slim.
Compared to low-cap companies, mid-cap businesses are less exposed to market volatility, economic inflation, and complete changes in the market.
The equity shares for mid-cap funds are more when compared to the large-caps, thereby giving investors the interest they seek to invest their money in any business.

What Are the Best Mid-Cap Mutual Funds to Invest in in 2022?

While many mid-cap funds are performing well, this listicle will only highlight the name of ten such funds that have proven to be lucrative enough for investments in 2022.

1. Axis mid-cap fund

Launched in 2011, the Axis mid-cap fund is one of the best options for investors looking for long-term investment opportunities and a higher return based on the amount you have invested. The company has done quite well since this fund’s launch. The compounded annual growth rate (CAGR) is approximately 17.8%. Instead of investing in the right mid-cap companies, the fund aims for the larger ones, which are on the borderline of separating the mid-cap and large-cap companies.

2. PGIM India midcap opportunities fund

If intending to score higher returns, this fund invests in large quantities in mid-cap companies. It was launched in 2013 and has been recorded to have a CAGR return percentage of 18.3% since it was launched in the market. Although the current holdings and equity shares are promising, this fund is associated with higher risks that should be addressed.

3. Kotak emergency equity scheme

Another grand equity scheme offering excellent mid-cap investment options is the Kotak Emergency equity scheme. Although it was launched in 2007, the fund has its CAGR marked at 13.8%. The total asset valuation as of 2022 is INR 21935 crores.

4. Invesco India mid-cap fund

With an approximate asset valuation of INR 2525 crores, Invesco India mid-cap fund is the next best option. It was launched in 2007 and had a recorded CAGR return of 15% since its launch. The risks associated with the investment are moderately high but not scary for the investors.

5. HDFC mid-cap opportunities fund

Having a CAGR return of 16.1% since its launch in 2007, the HDFC mid-cap fund is one of the best options for investors looking forward to investing in equities of mid-sized companies. The total assets have been valued at INR 34227 crores, which is undoubtedly a good number in the investment market.

6. Tata mid-cap growth fund

This mid-cap fund has had a CAGR growth of 11.9% since its launch in 1994. It has an expense ratio of approximately 2.2, a minimum number of investments of 5000, and a maximum number of SIP investments of 150.

7. SBI Magnum mid-cap fund

Launched in 2005, SBI Magnum mid-cap fund is one of the best funds to invest in and has a return CAGR of approximately 16.6%. It offers a liquidity pool to the investors based on an open-ended scheme so that investors can have maximum returns on their investments.

8. ICICI Prudential mid-cap fund

Established in 2004, this fund has moderately high risks. But the CAGR return rate of 16.9% since the launch and an asset valuation of INR 3558 crores as of 2022 has proven the fund’s potential to offer excellent returns to investors.

9. Motilal Oswal midcap 30 fund

As the name suggests, this fund intends to earn long-term investment opportunities in 30 mid-cap companies at the most. This fact can be observed through a whopping 20.8% CAGR return since its launch in 2014. So far, the net assets owned have been valued at INR 3158 crores in 2022.

10. UTI mid-cap fund

UTI mid-cap fund aims towards gaining capital appreciation from mid-sized companies. It has had a CAGR return rate of 17.8% since its launch in 2004. With a minimum investment of 5000 and a minimum SIP investment of 500, the fund is worthy of attention, given the superior numbers and the total asset valuation recorded at INR 7233 crores.

Conclusion

With the best-performing mid-cap mutual funds being highlighted, investors can easily decide which one they want to invest further in. The decision should be made purely based on the fund’s growth opportunities and future scope, the returns on the investments, the flexibilities of the funds and the equity shares, and so on. Besides, the fund should be associated with mid-cap businesses with excellent room for growth and expansion for the coming few years, if not the decade.

While keeping the thought of multiplying your funds, start investing today