Looking to build long-term wealth? Mid cap mutual funds offer the perfect balance of growth potential and relative stability. These funds invest in mid-sized companies that are poised to become the blue-chip giants of tomorrow. Here are the top 5 mid cap mutual funds to consider in 2025 for a 10-year investment horizon, with updated data on returns and AUM as of July 14, 2025.
1. Motilal Oswal Midcap Fund
- 5-Year CAGR: 37.10%
- AUM: ₹33,053 Crores (as on July 2025)
- Fund Manager: Niket Shah
- Why Invest: Focuses on high-quality mid-sized companies with high return on capital employed (ROCE). Concentrated, high-conviction portfolio targeting alpha generation.
2. Axis Midcap Fund
- 5-Year CAGR: 23.96%
- AUM: ₹32,068.5 Crores (as on July 2025)
- Fund Manager: Shreyash Devalkar
- Why Invest: Maintains a disciplined investment approach in fundamentally strong businesses. Known for low volatility and stable performance.
3. Nippon India Growth Mid Cap Fund
- 5-Year CAGR: 32.11%
- AUM: ₹39,065 Crores (as on July 2025)
- Fund Manager: Tejas Sheth
- Why Invest: One of the oldest and most consistent mid cap funds. Offers broad sectoral diversification and exposure to rising market leaders.
4. HDFC Mid-Cap Opportunities Fund
- 5-Year CAGR: 32.13%
- AUM: ₹84,061 Crores (as on June 30, 2025)
- Fund Manager: Chirag Setalvad
- Why Invest: Large and well-researched portfolio with a consistent long-term track record. Focuses on scalable businesses with strong fundamentals.
5. UTI Mid Cap Fund
- 5-Year CAGR: 25.94%
- AUM: ₹12,224 Crores (as on July 2025)
- Fund Manager: Ankit Agarwal
- Why Invest: Research-driven fund with a bottom-up approach. Balanced sector allocation and ideal for SIP investors.
Comparison Table (As of July 2025)
| Fund Name | 5-Year CAGR | AUM (₹ Crores) |
|---|---|---|
| Motilal Oswal Midcap Fund | 37.10% | 33,053 |
| Axis Midcap Fund | 23.96% | 32,068.5 |
| Nippon India Growth Mid Cap Fund | 32.11% | 39,065 |
| HDFC Mid-Cap Opportunities Fund | 32.13% | 84,061 |
| UTI Mid Cap Fund | 25.94% | 12,224 |
Why Choose Mid Cap Funds for Long-Term?
- Growth Potential: Mid cap companies often outperform large caps during economic upswings.
- Reasonable Valuation: Many mid caps are still undervalued with strong earnings visibility.
- Compounding Effect: A long investment horizon allows returns to multiply over time.
- Less Risky Than Small Caps: Offers better stability while still delivering higher returns than large caps.
Example: ₹50,000 SIP for 10 Years at 15% CAGR
| Monthly SIP | Duration | Expected CAGR | Future Value |
|---|---|---|---|
| ₹50,000 | 10 Years | 15% | ₹1.39 Crores |
Conclusion
Mid cap mutual funds are an excellent choice for investors aiming to build long-term wealth through equity. With careful selection and a disciplined SIP approach, these funds can deliver impressive returns over a 10-year period. Always consult a SEBI-registered advisor before investing to match your risk profile and financial goals.
Disclaimer
Mutual fund investments are subject to market risks. Past performance is not indicative of future returns.