Best Mid Cap Funds to Invest in India in October 2026
What are mid cap funds?
A mid cap fund is an equity mutual fund that invests mainly in mid cap companies. SEBI defines mid cap companies as those ranked 101st to 250th in India by full market capitalisation, and requires a mid cap fund to keep at least 65% of its assets in them.
Mid cap companies sit between large caps and small caps. They are usually past the early stage of a business but still growing, and some go on to become large companies. They can grow faster than large companies, and they can also be hit harder in a downturn.
- Total funds
- 32
- Category fund size
- ₹5.44 lakh crore
- Average 1-year return
- 6.50%
- Average 3-year return
- 15.57%
Direct plans, as of 30 September 2026
Top mid cap funds to invest in India in October 2026
These are 10 mid cap funds for this month, shown in no particular order. Their ranks are available only in the Blacklitt app: tap a fund to see its rank.
| Fund | 1Y return | 3Y return | Expense ratio | Fund size |
|---|---|---|---|---|
 ITI Mid Cap FundRank: App exclusive | 9.59% | 18.54% | 0.49% | ₹1,539 Cr |
 Bandhan Mid Cap FundRank: App exclusive | 9.63% | 17.07% | 0.51% | ₹2,581 Cr |
 ICICI Prudential Mid Cap FundRank: App exclusive | 12.91% | 20.04% | 0.88% | ₹8,403 Cr |
 Axis Midcap FundRank: App exclusive | 5.96% | 15.37% | 0.51% | ₹35,425 Cr |
 WhiteOak Capital Mid Cap FundRank: App exclusive | 12.32% | 20.33% | 0.43% | ₹7,485 Cr |
 Sundaram Mid Cap FundRank: App exclusive | 4.40% | 16.53% | 0.75% | ₹14,863 Cr |
 Edelweiss Mid Cap FundRank: App exclusive | 6.31% | 19.36% | 0.41% | ₹19,891 Cr |
 JM Mid Cap FundRank: App exclusive | 9.95% | 18.00% | 0.53% | ₹1,360 Cr |
 Baroda BNP Paribas Mid Cap FundRank: App exclusive | 7.84% | 15.29% | 0.49% | ₹2,658 Cr |
 HSBC Midcap FundRank: App exclusive | 17.89% | 22.18% | 0.53% | ₹17,188 Cr |
Mid cap funds returns calculator
See what an investment in one of these funds would have grown to. Choose a fund, a monthly SIP or a one-time lumpsum, an amount and a period.
Between ₹500 and ₹1,00,000.
- Invested
- Worth
- Total investment
- ₹6,00,000
- Profit
- ₹3,18,153
- Current value
- ₹9,18,153
This fund has generated an XIRR of 17.02% over the past 5 years.
See this fund in the appYear-by-year numbers
| Year | Invested | Worth |
|---|---|---|
| 1 | ₹1,20,000 | ₹1,27,690 |
| 2 | ₹2,40,000 | ₹3,01,783 |
| 3 | ₹3,60,000 | ₹6,51,439 |
| 4 | ₹4,80,000 | ₹7,24,841 |
| 5 | ₹6,00,000 | ₹9,18,153 |
Details of the funds on this list
Let's take a closer look at these funds.
ITI Mid Cap Fund
- Fund Performance
- The ITI Mid Cap Fund has given 18.54% annualised returns in the past three years and 15.36% in the last five years. In the past year it has returned 9.59%.
- Minimum Investment Amount
- The minimum amount required to invest in ITI Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of ITI Mid Cap Fund charges an expense ratio of 0.49% a year, and the fund's size is ₹1,539 Cr.
Bandhan Mid Cap Fund
- Fund Performance
- The Bandhan Mid Cap Fund has given 17.07% annualised returns in the past three years. In the past year it has returned 9.63%.
- Minimum Investment Amount
- The minimum amount required to invest in Bandhan Mid Cap Fund via lump sum is ₹1,000 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Bandhan Mid Cap Fund charges an expense ratio of 0.51% a year, and the fund's size is ₹2,581 Cr.
ICICI Prudential Mid Cap Fund
- Fund Performance
- The ICICI Prudential Mid Cap Fund has given 20.04% annualised returns in the past three years and 16.25% in the last five years. In the past year it has returned 12.91%.
- Minimum Investment Amount
- The minimum amount required to invest in ICICI Prudential Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of ICICI Prudential Mid Cap Fund charges an expense ratio of 0.88% a year, and the fund's size is ₹8,403 Cr.
Axis Midcap Fund
- Fund Performance
- The Axis Midcap Fund has given 15.37% annualised returns in the past three years and 12.45% in the last five years. In the past year it has returned 5.96%.
- Minimum Investment Amount
- The minimum amount required to invest in Axis Midcap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Axis Midcap Fund charges an expense ratio of 0.51% a year, and the fund's size is ₹35,425 Cr.
WhiteOak Capital Mid Cap Fund
- Fund Performance
- The WhiteOak Capital Mid Cap Fund has given 20.33% annualised returns in the past three years. In the past year it has returned 12.32%.
- Minimum Investment Amount
- The minimum amount required to invest in WhiteOak Capital Mid Cap Fund via lump sum is ₹500 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of WhiteOak Capital Mid Cap Fund charges an expense ratio of 0.43% a year, and the fund's size is ₹7,485 Cr.
Sundaram Mid Cap Fund
- Fund Performance
- The Sundaram Mid Cap Fund has given 16.53% annualised returns in the past three years and 15.92% in the last five years. In the past year it has returned 4.40%.
- Minimum Investment Amount
- The minimum amount required to invest in Sundaram Mid Cap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Sundaram Mid Cap Fund charges an expense ratio of 0.75% a year, and the fund's size is ₹14,863 Cr.
Edelweiss Mid Cap Fund
- Fund Performance
- The Edelweiss Mid Cap Fund has given 19.36% annualised returns in the past three years and 17.45% in the last five years. In the past year it has returned 6.31%.
- Minimum Investment Amount
- The minimum amount required to invest in Edelweiss Mid Cap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Edelweiss Mid Cap Fund charges an expense ratio of 0.41% a year, and the fund's size is ₹19,891 Cr.
JM Mid Cap Fund
- Fund Performance
- The JM Mid Cap Fund has given 18.00% annualised returns in the past three years. In the past year it has returned 9.95%.
- Minimum Investment Amount
- The minimum amount required to invest in JM Mid Cap Fund via lump sum is ₹1,000 and via SIP is ₹1,000.
- Expense Ratio and Fund Size
- The direct plan of JM Mid Cap Fund charges an expense ratio of 0.53% a year, and the fund's size is ₹1,360 Cr.
Baroda BNP Paribas Mid Cap Fund
- Fund Performance
- The Baroda BNP Paribas Mid Cap Fund has given 15.29% annualised returns in the past three years and 14.52% in the last five years. In the past year it has returned 7.84%.
- Minimum Investment Amount
- The minimum amount required to invest in Baroda BNP Paribas Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of Baroda BNP Paribas Mid Cap Fund charges an expense ratio of 0.49% a year, and the fund's size is ₹2,658 Cr.
HSBC Midcap Fund
- Fund Performance
- The HSBC Midcap Fund has given 22.18% annualised returns in the past three years and 17.80% in the last five years. In the past year it has returned 17.89%.
- Minimum Investment Amount
- The minimum amount required to invest in HSBC Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of HSBC Midcap Fund charges an expense ratio of 0.53% a year, and the fund's size is ₹17,188 Cr.
How do mid cap funds work?
A mutual fund pools money from many investors and a fund manager invests it. In a mid cap fund, the manager buys shares of mid-sized companies, so the fund's value follows how those shares perform.
You buy units of the fund at its net asset value (NAV), the price of one unit, which is worked out at the end of each trading day. When the shares in the portfolio rise, the NAV rises, and when they fall, the NAV falls.
Returns come from growth in the share prices of the companies the fund holds, and sometimes from dividends those companies pay. Because mid cap companies are smaller than large ones, their share prices usually move more, in both directions.
Every fund has an expense ratio, a yearly fee charged as a percentage of its assets. A direct plan has a lower expense ratio than the regular plan of the same fund, because it does not pay a distributor. Many funds also charge an exit load if you sell within a set period, often a year, so check the scheme document before you invest.
Who should invest in mid cap funds?
Whether a mid cap fund fits you depends on how its benefits and its risks sit with your goals, your time horizon and your comfort with falls.
Benefits of mid cap funds
- Exposure to companies that are still growing, which can offer higher long-term returns than large cap funds, though not in every period.
- A middle path between the relative stability of large caps and the higher risk of small caps.
- Diversification across many mid-sized companies and sectors.
- A professional fund manager picks and monitors the stocks, and you can start with a small amount through a SIP or a lumpsum.
Risks of mid cap funds
- Higher volatility than large cap funds. Falls can be steep and can take years to recover from.
- Less liquidity in some mid cap shares, which can make them harder to sell at a fair price in a stressed market.
- Shorter track records. Mid cap companies are less established, so their earnings can be less steady.
- Returns are not guaranteed, and a fund that did well in the past may not do so again.
In short, mid cap funds offer higher growth potential in return for sharper falls and a longer wait for recovery. That trade-off is why they suit some investors and not others.
Who mid cap funds may suit
- Investors with a long time horizon. Mid cap funds are generally considered for goals seven years or more away, because the time gives the fund a chance to recover from falls.
- Investors who can handle large swings in value without selling in a fall, and so can stay invested long enough to benefit from the growth.
- Investors who already hold large cap or index funds and want some extra growth potential. Many keep mid cap funds as one part of a wider portfolio, not the whole of it.
Who should be careful
- Investors who need the money within a few years, because a fall close to the time they need it may not have time to recover.
- Investors who would be uncomfortable seeing their investment fall by a large amount.
- First-time investors with no other holdings. A broader fund may be a gentler start.
Taxation on mid cap funds
A mid cap fund is an equity-oriented fund, because it keeps at least 65% of its assets in listed Indian shares. Your gains are taxed as capital gains, depending on how long you hold the units.
- Short-term capital gains (STCG): if you sell within 12 months, the gain is taxed at 20%.
- Long-term capital gains (LTCG): if you sell after more than 12 months, gains up to ₹1.25 lakh in a financial year are tax-free. Gains above that are taxed at 12.5%.
The ₹1.25 lakh limit applies to all your equity fund and share sales in the year together, not to each fund. Each SIP instalment has its own purchase date, so when you sell, the older instalments are treated as sold first.
Tax rules can change, so check the current rules or ask a tax adviser before you sell.
Frequently asked questions
Are mid cap funds a good investment?
Mid cap funds can suit investors who have a long horizon and can accept large swings in value. They carry more risk than large cap funds, so whether they are right for you depends on your goals, how long you can stay invested and how you would react to a fall.
What are mid cap companies?
SEBI defines mid cap companies as those ranked 101st to 250th in India by full market capitalisation. AMFI publishes the list of companies in each category from time to time, so the companies in the category can change.
Are mid cap funds risky?
Yes. Mid cap funds are more volatile than large cap funds. They can fall sharply in a downturn and may take a long time to recover.
How long should I stay invested in a mid cap fund?
Mid cap funds are generally considered for a horizon of seven years or more. A longer period gives the fund more time to recover from falls.
Is a SIP or a lumpsum better for mid cap funds?
A SIP spreads your purchases across many months, so you do not put everything in at one price. This can smooth out the effect of a volatile market. A lumpsum invests everything at once. Neither is always better, and the returns calculator above lets you compare how each would have turned out for a fund in the past.
How do mid cap funds differ from large cap and small cap funds?
Large cap funds invest in the biggest 100 companies and are usually less volatile. Small cap funds invest in companies ranked 251st and below, and are usually more volatile. Mid cap funds sit in between.
How are mid cap funds taxed?
They are taxed as equity funds: 20% on gains from units sold within 12 months, and 12.5% on gains above ₹1.25 lakh in a financial year from units sold after 12 months.
Which is the best mid cap fund?
There is no single best fund for everyone. The list above shows 10 mid cap funds in no particular order. To see their ranks, open the Blacklitt app.
Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
The funds on this page are shown for information and education, with figures as of 30 September 2026. Past performance does not indicate future returns. This is not personalised investment advice or a recommendation to buy or sell any fund, so check that a fund suits your own goals, time horizon and risk appetite, or speak to an adviser, before you invest.
Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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