Mid Cap Mutual Funds to Invest in October 2025: Top Picks and Recommendations

Mid cap mutual funds invest in medium-sized companies with market capitalization between 101 and 250. While mid cap stocks have witnessed a robust rally, investors should exercise caution due to high risk tolerance and potential volatility. Recommended mid cap schemes include Axis Midcap Fund, PGIM India Midcap Fund, Invesco India Midcap Fund, Kotak Midcap Fund, and Tata Mid Cap Fund.

Mid-cap mutual funds have demonstrated resilience amidst market volatility, with several funds outperforming their benchmarks and category averages over the past year. This article explores the performance of mid-cap mutual funds, their risk profile, and recommended schemes.

Performance of Mid-Cap Mutual Funds

In the past year, when equities were largely in negative territory, mid-cap mutual funds have shown promising performance. Three large & mid-cap funds—Invesco India Large & Mid Cap Fund, Motilal Oswal Large & Mid Cap Fund, and ICICI Prudential Large & Mid Cap Fund—beat their respective category averages and benchmarks These 3 large & mid cap mutual funds beat their category average and benchmark in 1 year^[1].

- Invesco India Large & Mid Cap Fund: 1.56% return vs. 4.37% category average and 6.16% benchmark loss.
- Motilal Oswal Large & Mid Cap Fund: 1.26% return vs. 4.37% category average and 6.16% benchmark loss.
- ICICI Prudential Large & Mid Cap Fund: -0.77% return vs. 4.37% category average and 6.16% benchmark loss.

These funds not only outperformed their benchmarks but also shielded investors from sharper drawdowns, making them relative winners in an otherwise weak year for equities These 3 large & mid cap mutual funds beat their category average and benchmark in 1 year^[1].

Risk and Volatility

Mid-cap stocks are known for their high risk tolerance and potential volatility. Investors should exercise caution when considering mid-cap mutual funds. While these funds offer the potential for higher returns, they come with a higher degree of risk compared to large-cap funds.

Recommended Mid-Cap Schemes

Given the performance and risk profile of mid-cap mutual funds, investors might consider the following schemes:

- Axis Midcap Fund
- PGIM India Midcap Fund
- Invesco India Midcap Fund
- Kotak Midcap Fund
- Tata Mid Cap Fund

These funds have a proven track record of delivering consistent performance and are well-regarded in the mid-cap mutual fund category.

Conclusion

Mid-cap mutual funds have shown resilience and outperformed their benchmarks in the past year. However, investors should be aware of the high risk and volatility associated with mid-cap stocks. By understanding the performance and risk profile of these funds, investors can make informed decisions about their investment portfolio.

References

These 3 large & mid cap mutual funds beat their category average and benchmark in 1 year^[1] https://economictimes.indiatimes.com/mf/analysis/these-3-large-mid-cap-mutual-funds-beat-their-category-average-and-benchmark-in-1-year/icici-prudential-large-mid-cap-fund/slideshow/124303014.cms?from=mdr