Best Mid Cap Mutual Funds in August 2026

Last Reviewed and Updated: 17 Aug 2026

A data driven ranking of 33 direct growth mid cap schemes, based on fund data last updated 16 August 2026

Mid cap mutual funds invest primarily in companies ranked 101st to 250th by market capitalisation on Indian exchanges, with SEBI mandating a minimum 65% allocation to these stocks.

The remaining 35% is available for other market cap segments at the manager's discretion. The category offers higher long term growth potential than large cap funds alongside meaningfully higher volatility, making it suitable for investors with a long time horizon and the ability to stay invested through significant interim drawdowns.

This article analyses 33 direct growth mid cap schemes using data as of 16 August 2026. One entry in the source data, Baroda BNP Paribas Money Market Fund, is a money market scheme that has been included in the data set in error and is excluded from all rankings and analysis.

Of the 33 genuine mid cap funds, 30 have a 3 year return and 26 have a 5 year return, with 4 funds too recently launched to have either. All numbers are drawn directly from the fund data set.

The Benchmark Context: A Demanding Standard

The 3 year category benchmark return is 18.97% and the 5 year benchmark return is 18.38%. These are among the most demanding benchmarks in any equity category reviewed in this series, and they tell a particularly important story in this data set: of the 30 funds with a 3 year return, 11 have failed to beat the 3 year benchmark.

That is more than one in three funds delivering below index returns after taking an active management fee. Over 5 years, the picture is similarly striking, with at least 10 funds finishing below the 18.38% benchmark.

The implication is clear. In the mid cap category, fund selection matters enormously. Choosing poorly, or defaulting to a large, well known fund without checking its returns against the benchmark, can result in an outcome worse than a passive mid cap index fund at a fraction of the cost.

The top performers clear the benchmark by 3 to 7 percentage points annually; the worst underperform it by 5 to 7 points.

How These Funds Were Ranked

Rankings are shown side by side for 3 year and 5 year annualised returns. Eight funds appear in the top 10 of both tables, a high level of consistency for a volatile category and the strongest overlap of any category reviewed so far in this August 2026 update series.

Expense ratio, AUM, and 3 year Sharpe ratio are included throughout. Expense ratios above 1.0% are flagged where they may indicate regular plan data rather than direct plan pricing.

Top 10 Mid Cap Funds: 3 Year vs 5 Year Rankings

Eight funds appear in the top 10 of both the 3 year and 5 year tables: HSBC Midcap Fund, Invesco India Mid Cap Fund, ICICI Prudential Midcap Fund, Edelweiss Mid Cap Fund, Mahindra Manulife Mid Cap Fund, Motilal Oswal Midcap Fund, Nippon India Growth Mid Cap Fund, and Sundaram Mid Cap Fund.

This is the highest dual horizon consistency of any category in this series, indicating that the top performers in mid cap have sustained their outperformance over meaningful time periods.

Ranked by 3 Year Annualised Return

Rank	Fund	3Y Return	AUM
1	HSBC Midcap Fund	26.24%	₹15,578.18 Cr
2	Invesco India Mid Cap Fund	25.99%	₹14,721.45 Cr
3	WhiteOak Capital Mid Cap Fund	24.47%	₹6,171.27 Cr
4	ICICI Prudential Midcap Fund	24.40%	₹7,953.69 Cr
5	Edelweiss Mid Cap Fund	23.88%	₹18,693.49 Cr
6	ITI Mid Cap Fund	23.35%	₹1,479.84 Cr
7	Mahindra Manulife Mid Cap Fund	22.42%	₹5,075.66 Cr
8	Sundaram Mid Cap Fund	21.96%	₹14,504.36 Cr
9	Nippon India Growth Mid Cap Fund	21.78%	₹50,750.81 Cr
10	Motilal Oswal Midcap Fund	21.71%	₹40,036.07 Cr

30 of 33 funds have a 3 year return. NA* indicates no track record. The 3 year benchmark is 18.97%, which all 10 funds above have beaten. HSBC (1.22%) and ITI (1.10%) expense ratios may reflect regular plan data and should be verified before investing.

Ranked by 5 Year Annualised Return

Rank	Fund	5Y Return	AUM
1	Motilal Oswal Midcap Fund	23.46%	₹40,036.07 Cr
2	Invesco India Mid Cap Fund	21.13%	₹14,721.45 Cr
3	HDFC Mid Cap Fund	20.86%	₹1,05,142.69 Cr
4	Nippon India Growth Mid Cap Fund	20.31%	₹50,750.81 Cr
5	Edelweiss Mid Cap Fund	20.14%	₹18,693.49 Cr
6	HSBC Midcap Fund	20.05%	₹15,578.18 Cr
7	Mahindra Manulife Mid Cap Fund	19.91%	₹5,075.66 Cr
8	Sundaram Mid Cap Fund	19.13%	₹14,504.36 Cr
9	ICICI Prudential Midcap Fund	18.96%	₹7,953.69 Cr
10	Kotak Midcap Fund	18.33%	₹69,282.83 Cr

26 of 33 funds have a 5 year return. The 5 year benchmark is 18.38%. Motilal Oswal (23.46%), Invesco India (21.13%), HDFC (20.86%), Nippon India (20.31%), Edelweiss (20.14%), and HSBC (20.05%) all comfortably exceed the benchmark. HSBC expense ratio requires verification.

A Closer Look at the Top Performers

1. HSBC Midcap Fund: Leads 3 Year Table, Expense Requires Verification

HSBC Midcap Fund, managed by Cheenu Gupta, delivers the highest 3 year return in the category at 26.24% and ranks 6th on the 5 year table at 20.05%. Its Sharpe ratio of 0.90 is the fourth highest among equity mid cap funds.

However, its expense ratio of 1.22% in this data set is significantly above the typical direct plan range for a mid cap fund and likely reflects a regular plan entry: in the June 2026 data for this fund the direct plan expense ratio was recorded as 0.56%.

Investors should verify the current direct plan expense ratio before considering this fund, as the net return difference between 0.56% and 1.22% compounds to a very meaningful gap over a 10 to 15 year holding period.

2. Invesco India Mid Cap Fund: Most Complete Profile in the Category

Invesco India Mid Cap Fund, managed by Aditya Khemani, ranks 2nd on the 3 year table at 25.99% and 2nd on the 5 year table at 21.13%. It carries the second highest Sharpe ratio among equity mid cap funds at 0.95, indicating strong returns with well controlled volatility.

Its expense ratio of 0.49% is among the lowest in the category for a fund with a proven track record, and its AUM of Rs 14,721.45 Cr is appropriate for the mid cap universe. On the combined metrics of return, 5 year consistency, risk adjusted performance, and cost, Invesco India Mid Cap Fund is the most comprehensively strong option in this data set.

3. WhiteOak Capital Mid Cap Fund: Highest Sharpe Ratio, No 5 Year History

WhiteOak Capital Mid Cap Fund, managed by Ramesh Mantri, ranks 3rd by 3 year return at 24.47% and carries the highest Sharpe ratio among equity mid cap funds in this data set at 0.97.

This indicates the best return per unit of risk over the 3 year period of any fund in the category. Its expense ratio of 0.49% is competitive and its AUM of Rs 6,171.27 Cr is appropriate for active mid cap management.

The absence of a 5 year track record is the only limitation on full evaluation. The combination of the best risk adjusted score, a top 3 return, and a competitive cost structure makes it one of the most compelling options for investors comfortable with a shorter history.

4. Motilal Oswal Midcap Fund: Clear 5 Year Leader

Motilal Oswal Midcap Fund, managed by Ajay Khandelwal, leads the 5 year return table at 23.46%, which is 2.33 percentage points above second placed Invesco India and 5.08 percentage points above the 5 year benchmark.

It ranks 10th by 3 year return at 21.71%, which is above the 18.97% benchmark. Unlike the June 2026 data where Motilal Oswal ranked 21st by 3 years, this update shows it comfortably within the top 10 on both horizons.

Its AUM of Rs 40,036.07 Cr is large for the mid cap universe, and a Sharpe ratio of 0.71 is toward the lower end of the top 10 funds, suggesting that its outsized returns have come with above average volatility relative to peers.

For investors with a long horizon who are comfortable with higher short term swings, Motilal Oswal's 5 year record is the strongest argument in the category.

5. Edelweiss Mid Cap Fund and Mahindra Manulife Mid Cap Fund: Best Cost Adjusted Consistency

Edelweiss Mid Cap Fund ranks 5th by 3 year return (23.88%) and 5th by 5 year return (20.14%), with a Sharpe ratio of 0.92 and an expense ratio of 0.72%. Mahindra Manulife Mid Cap Fund ranks 7th by 3 year return (22.42%) and 7th by 5 year return (19.91%), with a Sharpe ratio of 0.85 and the lowest expense ratio among all funds with a proven dual horizon track record at 0.43%.

Both funds place identically on both time horizon tables, which is an unusual level of consistency across two independently measured windows.

Mahindra Manulife's combination of the joint lowest cost and top 10 placement on both horizons makes it the best cost adjusted performer among the consistently ranked funds.

Best Risk Adjusted Returns: Highest Sharpe Ratio

The following table excludes the Baroda BNP Paribas Money Market Fund, which shows an artificially high Sharpe ratio of 1.72 as a money market scheme and is not a valid comparison for equity mid cap funds.

Fund	3Y Sharpe Ratio	3Y Return
WhiteOak Capital Mid Cap Fund	0.97	24.47%
Invesco India Mid Cap Fund	0.95	25.99%
Edelweiss Mid Cap Fund	0.92	23.88%
HSBC Midcap Fund	0.90	26.24%
ICICI Prudential Midcap Fund	0.87	24.40%
Mahindra Manulife Mid Cap Fund	0.85	22.42%

All six funds in the Sharpe table also rank in the top 10 by 3 year return, which means the category's best risk adjusted performers are simultaneously its best absolute return generators.

This is an unusually clean alignment and suggests the top performing funds have earned their returns through genuine stock selection rather than excessive concentration or leverage. WhiteOak Capital leads at 0.97, followed closely by Invesco India at 0.95 and Edelweiss at 0.92, all of which would be considered exceptional Sharpe ratios for an equity mid cap fund.

Lowest Cost Mid Cap Funds

The following table excludes the Baroda BNP Paribas Money Market Fund (0.14% expense ratio), which is a money market scheme and not a valid cost comparison for this category.

Fund	Expense Ratio
Kotak Midcap Fund	0.39%
Mahindra Manulife Mid Cap Fund	0.43%
Baroda BNP Paribas Mid Cap Fund	0.48%
WhiteOak Capital Mid Cap Fund	0.49%
Invesco India Mid Cap Fund	0.49%
Canara Robeco Mid Cap Fund	0.50%
Mirae Asset Midcap Fund	0.50%

NA* indicates no 5 year track record available.

Kotak Midcap Fund at 0.39% is the lowest cost genuine mid cap equity fund with a full dual horizon track record. Its 3 year return of 20.14% clears the 18.97% benchmark and its 5 year return of 18.33% is just below the 18.38% benchmark, making it a reasonable but not exceptional performer at the lowest available cost.

Mahindra Manulife at 0.43% delivers meaningfully stronger returns on both horizons while still ranking among the cheapest options. Invesco India at 0.49% combines the second lowest cost among funds with a dual horizon record with the second strongest returns on both horizons, making it the clearest cost and return combination in the category.

Mirae Asset at 0.50% delivers a 3 year return of 18.76%, just below the 18.97% benchmark, while Baroda BNP Paribas at 0.48% delivers 19.74% over 3 years, above benchmark but its 5 year return of 17.03% is below the 18.38% five year benchmark.

The Largest Mid Cap Funds by AUM

AUM scale is a genuine constraint in the mid cap category. Five of the six largest funds have AUM well above Rs 20,000 Cr, and the data shows a notable pattern: larger funds have generally found it harder to match the returns of their more nimble counterparts.

Fund	AUM
HDFC Mid Cap Fund	₹1,05,142.69 Cr
Kotak Midcap Fund	₹69,282.83 Cr
Nippon India Growth Mid Cap	₹50,750.81 Cr
Motilal Oswal Midcap Fund	₹40,036.07 Cr
Axis Midcap Fund	₹34,403.73 Cr
SBI Midcap Fund	₹24,353.77 Cr

HDFC Mid Cap Fund at Rs 1,05,142.69 Cr is by far the largest fund in the category and yet delivers 20.38% over 3 years and 20.86% over 5 years, both above the respective benchmarks and placing it in the top 15 on both horizons.

This is a creditable achievement at its scale. Nippon India and Motilal Oswal, the third and fourth largest, both rank in the top 10 on both horizons, suggesting that mid to large scale funds can still outperform if managed with sufficient conviction.

The two weak performers among the largest funds are Axis Midcap (18.65% over 3 years, just below the 18.97% benchmark, and a poor 15.13% over 5 years) and SBI Midcap (13.98% over 3 years, 5 full percentage points below the benchmark, and 15.30% over 5 years, 3 points below the 5 year benchmark).

Both Axis and SBI manage very large AUM relative to what the mid cap universe can absorb efficiently, and their return data suggests this scale has meaningfully constrained their ability to generate alpha.

Funds Failing to Clear the Benchmark

With a 3 year benchmark of 18.97%, eleven of the thirty funds with 3 year data have delivered below index returns. This section names them explicitly because many are well known brands with large AUM, and investors may be in them simply due to familiarity.

Fund	3Y Return	3Y Benchmark	Gap
Mirae Asset Midcap Fund	18.76%	18.97%	-0.21%
Franklin India Mid Cap Fund	18.75%	18.97%	-0.22%
Axis Midcap Fund	18.65%	18.97%	-0.32%
Aditya Birla Sun Life Mid Cap	18.35%	18.97%	-0.62%
Tata Mid Cap Fund	17.75%	18.97%	-1.22%
DSP Midcap Fund	17.09%	18.97%	-1.88%
UTI Mid Cap Fund	14.57%	18.97%	-4.40%
Quant Mid Cap Fund	14.20%	18.97%	-4.77%
SBI Midcap Fund	13.98%	18.97%	-4.99%
PGIM India Midcap Fund	13.78%	18.97%	-5.19%
Taurus Discovery Midcap Fund	12.06%	18.97%	-6.91%

The gap column above is particularly stark. SBI Midcap Fund and PGIM India Midcap Fund have underperformed the benchmark by approximately 5 percentage points per year over 3 years, and Taurus by nearly 7 points.

An investor in SBI Midcap Fund over this 3 year period has received returns equivalent to paying 1.06% in annual fees while getting a return 4.99 percentage points below what a passive index fund would have delivered.

Axis Midcap Fund, which manages Rs 34,403.73 Cr, and Franklin India Mid Cap Fund, which manages Rs 12,870.79 Cr, are both marginally below the benchmark as well, representing a large amount of investor capital delivering sub index outcomes.

These funds are not failures in absolute terms but they have not justified their active management cost over this period.

Expense Ratios That Need Attention

Fund	Expense Ratio	Note
Samco Mid Cap Fund	1.74%	No return data; highest equity expense in category
Taurus Discovery Midcap Fund	1.69%	6.91% below 3Y benchmark; destroys value after costs
LIC MF Midcap Fund	1.41%	Just above benchmark; net of fees returns are below benchmark
HSBC Midcap Fund	1.22%	Likely regular plan; direct plan was 0.56% in June 2026
Quant Mid Cap Fund	1.20%	4.77% below benchmark; high cost compounds the underperformance
SBI Midcap Fund	1.06%	4.99% below benchmark; paying above median cost for below index return

LIC MF Midcap Fund illustrates how a seemingly acceptable gross return can mask poor net value. Its 3 year return of 19.07% is just 0.10 percentage points above the 18.97% benchmark. After deducting its 1.41% annual expense, the net return to investors over 3 years is approximately 17.66%, which is 1.31 percentage points below the benchmark.

An investor in LIC MF Midcap Fund has paid an above average cost for an outcome worse than a passive index fund. HSBC at 1.22% should be verified against its direct plan pricing before drawing any conclusions from its return ranking.

What These Funds Actually Hold

SEBI mandates at least 65% in mid cap stocks for this category, but the opportunity set within that universe varies enormously. The 101st to 250th companies by market cap span thousands of crores in size range and cover every sector of the Indian economy. As a result, mid cap fund portfolios differ more from each other than in any other equity category.

The top performing funds in this data set, including Invesco India, WhiteOak Capital, Edelweiss, and Mahindra Manulife, tend to run more concentrated portfolios with higher conviction positions in industrials, capital goods, healthcare, specialty chemicals, and select consumer names.

Funds with lower returns such as SBI, Axis, and DSP hold broader portfolios with more positions and smaller individual weights, which has limited both their upside and their ability to beat the benchmark over this period.

Things to Consider Before Investing

• The benchmark of 18.97% over 3 years and 18.38% over 5 years is the most demanding standard in any equity category covered in this series. Investors choosing a mid cap fund should explicitly check whether their chosen fund has cleared these benchmarks, not just whether it has delivered positive absolute returns. Eleven funds in this data set have failed to clear the 3 year benchmark.

• Invesco India Mid Cap Fund offers the strongest combination of metrics in the data set: 2nd by both 3 year and 5 year returns, second highest Sharpe ratio at 0.95, and one of the lowest expense ratios among proven performers at 0.49%. For investors who want one fund that performs well across every evaluated dimension, Invesco India is the clearest choice.

• WhiteOak Capital Mid Cap Fund has the highest Sharpe ratio at 0.97 and the 3rd highest 3 year return at 24.47%, at an expense ratio of 0.49%. The only caveat is the absence of a 5 year track record. Investors comfortable with a shorter history will find the 3 year profile exceptionally strong.

• Motilal Oswal Midcap Fund leads the 5 year table by a clear 2.33 percentage point margin over second place. For long term investors, this 5 year record at 23.46% is the most powerful single data point in the category. Its lower Sharpe ratio of 0.71 compared to peers reflects higher volatility, so investors should be prepared for sharper swings than funds like Invesco India or Edelweiss.

• SBI Midcap Fund, Axis Midcap Fund, DSP Midcap Fund, and PGIM India Midcap Fund all manage significant AUM while delivering below benchmark returns. Investors currently in any of these funds should review whether the fund's performance justifies continued investment relative to lower cost, better performing alternatives in the same category.

• Mid cap funds require a minimum 5 to 7 year holding horizon. The category can experience drawdowns of 35% to 50% during adverse market conditions, and investors who cannot hold through these periods without redeeming should not be in this category regardless of fund selection.

• HSBC Midcap Fund's expense ratio of 1.22% requires verification against its direct plan pricing before any investment decision. If confirmed as a direct plan at this rate, the net return calculation changes significantly relative to peers at 0.43% to 0.74%.

Full Fund Universe: Quick Reference

Fund	3Y Return	5Y Return	Expense Ratio	AUM
HSBC Midcap Fund	26.24%	20.05%	1.22%	₹15,578.18 Cr
Invesco India Mid Cap Fund	25.99%	21.13%	0.49%	₹14,721.45 Cr
WhiteOak Capital Mid Cap Fund	24.47%	NA*	0.49%	₹6,171.27 Cr
ICICI Prudential Midcap Fund	24.40%	18.96%	0.89%	₹7,953.69 Cr
Edelweiss Mid Cap Fund	23.88%	20.14%	0.72%	₹18,693.49 Cr
ITI Mid Cap Fund	23.35%	17.74%	1.10%	₹1,479.84 Cr
Mahindra Manulife Mid Cap Fund	22.42%	19.91%	0.43%	₹5,075.66 Cr
Sundaram Mid Cap Fund	21.96%	19.13%	0.74%	₹14,504.36 Cr
Nippon India Growth Mid Cap Fund	21.78%	20.31%	0.61%	₹50,750.81 Cr
Motilal Oswal Midcap Fund	21.71%	23.46%	0.98%	₹40,036.07 Cr
JM Midcap Fund	21.69%	NA*	0.86%	₹1,274.52 Cr
Bandhan Midcap Fund	20.64%	NA*	0.51%	₹2,324.64 Cr
HDFC Mid Cap Fund	20.38%	20.86%	0.74%	₹1,05,142.69 Cr
Kotak Midcap Fund	20.14%	18.33%	0.39%	₹69,282.83 Cr
Union Midcap Fund	19.85%	17.28%	0.67%	₹1,846.92 Cr
Baroda BNP Paribas Mid Cap Fund	19.74%	17.03%	0.48%	₹2,584.12 Cr
Canara Robeco Mid Cap Fund	19.43%	NA*	0.50%	₹4,977.21 Cr
LIC MF Midcap Fund	19.07%	14.81%	1.41%	₹375.90 Cr
Mirae Asset Midcap Fund	18.76%	17.11%	0.50%	₹19,542.56 Cr
Franklin India Mid Cap Fund	18.75%	15.86%	0.81%	₹12,870.79 Cr
Axis Midcap Fund	18.65%	15.13%	0.80%	₹34,403.73 Cr
Aditya Birla Sun Life Mid Cap Fund	18.35%	15.99%	0.87%	₹6,722.78 Cr
Tata Mid Cap Fund	17.75%	16.70%	0.55%	₹6,056.43 Cr
DSP Midcap Fund	17.09%	13.48%	0.76%	₹20,522.87 Cr
UTI Mid Cap Fund	14.57%	14.11%	1.05%	₹12,379.17 Cr
Quant Mid Cap Fund	14.20%	17.38%	1.20%	₹8,106.70 Cr
SBI Midcap Fund	13.98%	15.30%	1.06%	₹24,353.77 Cr
PGIM India Midcap Fund	13.78%	12.72%	0.79%	₹10,981.47 Cr
Taurus Discovery Midcap Fund	12.06%	13.30%	1.69%	₹125.17 Cr
TRUSTMF Mid Cap Fund	NA*	NA*	0.59%	₹312.27 Cr
Helios Mid Cap Fund	NA*	NA*	0.78%	₹1,793.33 Cr
Bank of India Mid Cap Fund	NA*	NA*	1.12%	₹732.64 Cr
Samco Mid Cap Fund	NA*	NA*	1.74%	₹78.64 Cr

Table sorted by 3 year return. NA* indicates no data. One entry in the source data (Baroda BNP Paribas Money Market Fund) has been excluded as it is a money market scheme. The 3 year benchmark is 18.97% and the 5 year benchmark is 18.38%. HSBC expense ratio likely reflects regular plan data and requires verification.

This article is based on fund data as of 16 August 2026 and is intended for informational purposes only and is not investment advice. Mutual fund investments are subject to market risks and past performance does not guarantee future returns. One data entry (Baroda BNP Paribas Money Market Fund) has been excluded from all rankings as it is a money market scheme rather than a mid cap equity fund. HSBC Midcap Fund expense ratio may reflect regular plan data; investors should verify direct plan pricing before investing. Consult a SEBI registered financial advisor before making investment decisions.

Disclaimer

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Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.

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