Top Mid-Cap Mutual Funds for Investment in February 2025

A mid-cap mutual fund is a type of equity mutual fund that mainly invests in mid-cap companies, As per SEBI, mid-cap companies are ranked between 101 and 250 in the list of companies according to the market capitalization.

Most of the mutual fund investors are concerned about the high valuations in the mid-cap segment. Over the past few months, mid-cap stocks have experienced a strong rally, delivering impressive returns. Investors in mid-cap funds have seen substantial gains, with these funds generating an average return of 28.84% in 2024.

When the companies fail to fulfill their commitments in that market punish those companies. Some of these companies may also have questionable management practices. In fact, corporate governance remains a significant challenge for many mid-cap and small-cap firms. As a result, the market punishes such companies harshly.

That is why investing in Mid-cap companies can be risky, as a mutual fund investor, it is important to consider key aspects before investing in mid-cap companies. This scheme is suitable for investors with a high-risk appetite. Moreover, a long-term investment horizon of at least seven to ten years is important, because it allows investors to manage market volatility more effectively.

Here are the top mid-cap mutual funds for investment in February 2025:

• Axis Midcap Fund
• Invesco India Midcap fund
• PGIM India Midcap Opportunities Fund
• Kotak Emerging Equity Fund
• Tata Midcap Growth Fund

If an investor thinks that the mid-cap fund is best suitable for them, they can consider investing in these mid-cap schemes. Axis Midcap Fund has been in the top fourth quartile for the past 19 months. The Invesco India mid-cap Fund has been in the top second quartile for the past nine months. PGIM India Midcap Opportunities Fund has been in the top fourth quartile for the past 10 months. Tata Midcap Growth Fund has been in the top quartile for the past third quartile in the past two months and before that, the scheme had been in the top second quartile.