Equity · Category

Best Mid Cap Mutual Funds 2026

A mid cap fund must keep at least 65% of its portfolio in companies ranked 101st to 250th by market capitalisation. These are established businesses that are no longer small but have not reached the top hundred — the segment carries more growth potential than large caps and materially deeper drawdowns in a falling market.

The rules, in short

Universe: Ranks 101–250; Defined by AMFI's half-yearly list, last revised July 2026.
Minimum allocation: 65% in mid caps; SEBI category rule.
Tax on gains: 12.5% above ₹1.25 lakh; Long-term capital gains (held over 12 months) under Section 112A. Gains on units held 12 months or less are short-term and taxed at 20%. The ₹1.25 lakh exemption is an annual aggregate across all your equity gains.

All 34 Mid Cap funds, ranked

Ordered by three-year annualised return, computed from official AMFI NAV history to a common date. Every fund here follows the same SEBI mandate, so the differences below come from the manager's choices and the fund's costs — not from a difference in what they are allowed to hold.

NAV as of 1 Sept 2026

Category average over 3Y: 14.2% a year across 29 funds with a full record.

#Fund1Y3Y ↓5Yvs catExpense

Median expense ratio in this category: 0.64%. Direct plans cost less than regular plans — the same fund appears once here, on its longest-running plan.

Not enough history to rank

These 5 funds do not yet have a full 3Y NAV record, so ranking them against the funds above would compare different periods.

Bank of India Mid Cap Fund Helios Mid Cap Fund Samco Mid Cap Fund The Wealth Company Mid Cap Fund TRUSTMF MID CAP FUND

The reclassification effect nobody mentions

The mid cap universe is only 150 companies wide, and it is redrawn every six months. When a holding is promoted to large cap or demoted to small cap, it leaves the fund's core universe — and if the fund is close to its 65% floor, it may have to sell a company it still likes purely to stay within the mandate.

That churn is invisible in a returns table but it is real, and it is why mid cap funds tend to show higher portfolio turnover than large cap funds. Turnover costs are paid out of the fund, on top of the stated expense ratio.

How AMFI decides what counts as large, mid and small cap

AMFI ranks every listed company by average daily full market capitalisation and publishes the list twice a year, in January and July. Ranks 1–100 are large cap, 101–250 are mid cap, and everything from 251 down is small cap. In the July 2026 revision the large-cap cut-off was about ₹1.06 lakh crore and the mid-cap cut-off about ₹33,500 crore. Because the list is redrawn every six months, a stock can move between buckets and funds then have to adjust their holdings to stay within their mandate.

How to read the table below

Returns are annualised and computed from our own AMFI NAV history rather than taken from a fund factsheet, so every fund on this page is measured to the same date on the same basis. The category average is calculated across the same set.

Expense ratio is the annual cost, already deducted from the NAV you see — a fund returning 15% gross at a 1.2% expense ratio shows 13.8%. Direct plans cost less than regular plans because they carry no distributor commission.

Past returns describe what happened; they are not a forecast. Two funds with identical three-year numbers can have reached them through very different levels of volatility.

Frequently asked questions

What counts as a mid cap company in India?+

Companies ranked 101st to 250th by average daily full market capitalisation on AMFI's half-yearly list. In the July 2026 revision the mid-cap cut-off was around ₹33,500 crore.

Are mid cap funds riskier than large cap funds?+

They have historically fallen further in market corrections and recovered further in rallies. SEBI requires only 65% in mid caps rather than 80%, so the remaining 35% can moderate or amplify that depending on how the manager uses it.

How are Mid Cap funds ranked on this page?+

By three-year annualised return, computed from official AMFI NAV history to a common date, so every fund is measured on the same basis. Funds without a full three-year record are listed separately rather than ranked against funds that have one.

Are these returns after fees?+

Yes. Returns are calculated from NAV, and the expense ratio is already deducted from NAV daily. The expense-ratio column tells you what that ongoing cost is.

How this page is produced

Every figure above is computed from our own archive of the official AMFI NAV file, going back to 2006, to NAV dated 1 Sept 2026. Nothing here is copied from a factsheet or a third-party summary. The full method is published, including its limitations.

Because every fund here is measured to the same date on the same basis, the column is directly comparable — which a page assembled from individual factsheets is not. Returns are annualised over 3Y and the category average is calculated across the same set of funds shown above. Tax rules summarised on this page are general and current for FY 2026-27 — confirm your own position with a qualified tax adviser.

Written and maintained by Azad Mohammed, who built the pipeline these numbers come out of. Found an error? Tell us — corrections are made and the page rebuilds within the hour.

This page describes what each fund has done. It is not investment advice and not a recommendation to buy or sell any scheme. Arthkar is not a SEBI-registered investment adviser and does not provide or arrange investment advice. Mutual fund investments are subject to market risk; read all scheme related documents carefully.