Which mid-cap mutual funds have delivered the best returns over the past decade? As of October 2026, six mid-cap funds stand out for their strong 10-year annualized returns, according to ACE MF data. These funds show varied performance in the short term, different risk profiles, and diverse portfolio compositions.
- Invesco India Midcap Fund leads with an 18.56% annualized return over 10 years.
- HSBC Midcap Fund has been the top performer over the past year with 13.95% returns.
- All six funds experienced losses over the last three months, reflecting market volatility.
- Risk levels vary, with Invesco showing the highest standard deviation and Quant the lowest.
- Portfolio sizes range widely, from ₹15,748.83 crore to ₹66,613.26 crore.
- Sector allocations differ, with healthcare and finance sectors being prominent.
Which mid-cap funds have the best 10-year returns?
Ranking the funds by their 10-year annualized returns, Invesco India Midcap Fund leads at 18.56% per year. Close behind is Edelweiss Mid Cap Fund at 18.01%, followed by Quant Mid Cap Fund (17.77%), Nippon India Growth Mid Cap Fund (17.44%), HSBC Midcap Fund (16.89%), and Kotak Mid Cap Fund (16.87%). The difference between the highest and lowest returns among these six funds is just 1.69 percentage points, indicating strong long-term performance across the board.
How have these funds performed recently?
Short-term results tell a different story. HSBC Midcap Fund has been the standout performer over the last year, delivering 13.95% returns and ranking first among 31 mid-cap funds. It also led over six months with 13.63% returns and experienced the smallest decline in the last three months, down only 0.62%. In contrast, Kotak Mid Cap Fund faced the steepest short-term losses, dropping 6.91% over three months and 0.85% over one year.
What are the risk profiles of these funds?
Risk measured by standard deviation is highest for Invesco Midcap at 1.09, indicating more volatility, and lowest for Quant Mid Cap at 0.88. Beta values show how closely each fund follows market movements; only Invesco has a beta above 1 (1.09), meaning it is more sensitive to market changes. The Sharpe ratio, which assesses risk-adjusted returns, is best for HSBC at 0.05, while Quant and Kotak have slightly negative ratios, suggesting less favorable risk compensation.
How large are the funds and how diversified are their portfolios?
Kotak Mid Cap Fund is the largest with ₹66,613.26 crore in assets under management (AUM), followed by Nippon Midcap at ₹50,176.01 crore. Edelweiss, HSBC, and Invesco have smaller AUMs ranging from ₹15,748.83 crore to ₹19,230.16 crore. Portfolio sizes vary significantly: Quant Mid Cap holds just 23 stocks across 19 sectors, with a heavy concentration in Aurobindo Pharma (10.71%). In contrast, Edelweiss Mid Cap Fund is widely diversified with 106 stocks, and its largest holding, Federal Bank, accounts for only 3.06% of the portfolio.
Which sectors do these funds focus on?
Healthcare is the largest sector for Invesco Midcap (24.23%), Kotak (19.68%), and Quant (19.07%). Finance leads for Edelweiss (13.00%) and Nippon Midcap (16.66%). HSBC Midcap Fund invests heavily in healthcare (16.04%) and capital goods (15.68%). Federal Bank is a common top holding, appearing in five of the six funds' top 10 stocks.
What should investors consider when choosing among these funds?
Three key points emerge:
- Long-term and short-term performances differ significantly. While Invesco leads over 10 years, HSBC has been the recent top performer.
- Portfolio concentration varies widely, affecting single-stock risk. Quant’s concentrated portfolio contrasts with Edelweiss’s broad diversification.
- All funds exhibit volatility, with standard deviations near or above 1, so investors should be prepared for price fluctuations.
Understanding these factors can help investors select mid-cap funds that align with their risk tolerance and investment goals.
