Synopsis: This article explains the top-performing midcap funds that gave nearly 28% returns in the last 1 year. It lists down NAV, AUM, expense ratio, 1-year, 3-year, and 5-year returns, top holdings, benchmark index, and fund managers of each fund. It also discusses why midcap funds performed well in the last year and who should consider these funds.
Last year, the Indian equity market showed strong resilience even with the global market volatility, primarily due to ease in inflation, strong corporate performance, steady inflows, and outflows of investments.
Midcap companies performed well, as many of these companies were able to use the advantage of India’s strong economic growth, infrastructure development, and rise in consumption. While midcap indices gave decent returns of around 5-6% in the past year, there are a few midcap mutual funds that outperformed these benchmarks by delivering nearly 28% returns in the same period.
5 Top Performing Midcap Funds in the Last Year (as of 11 February, 2026)
1. ICICI Prudential Midcap Direct Plan (1-Year Return: 28.93%)
- NAV: ₹367.07
- AUM: ₹6,969.01 Cr
- 3-Year and 5-Year CAGR: 26.42%, 22.17%
- 3-Year and 5-Year Return: 99.0%,173.1%
- Expense Ratio: 1.03%
ICICI Prudential Midcap Direct Plan is an equity mutual fund scheme with the NIFTY Midcap 150 Total Return Index as its benchmark index. The fund is currently managed by Lalit Kumar and Sharmila D’Silva, and its top 3 holdings include Muthoot Finance Ltd, Jindal Steel Ltd, and Multi Commodity Exchange of India Ltd.
2. Invesco India Midcap Fund Direct (1-Year Return: 24.82%)
- NAV: ₹222.26
- AUM: ₹10,058.39 Cr
- 3-Year and 5-Year CAGR 28.99%, 23.10%
- 3-Year and 5-Year Return: 109.9%, 181.7%
- Expense Ratio: 0.54%
Invesco India Midcap Fund Direct Growth is an equity mutual fund scheme with the BSE 150 Midcap Total Return Index as its benchmark index. It’s currently managed by Aditya Khemani, and its top 3 holdings include The Federal Bank Ltd, AU Small Finance Bank, and L&T Finance Ltd.
3. HSBC Midcap Fund Direct (1-Year Return: 24.22%)
- NAV: ₹464.44
- AUM: ₹12,175.46 Cr
- 3-Year and 5-Year CAGR: 26.56%, 20.68%
- 3-Year and 5-Year Return: 101.7%,158.5%
- Expense Ratio: 0.65%
The HSBC Midcap Direct Fund is managed by Cheenu Gupta and Mayank Chaturvedi and has the NIFTY Midcap 150 Total Return Index as its benchmark index. Its top 3 holdings include Ashok Leyland Ltd, FSN E-Commerce Ventures Ltd, and Multi Commodity Exchange of India Ltd.
4. Mirae Asset Midcap Fund Direct (1-Year Return: 23.80%)
- NAV: ₹41.21
- AUM: ₹17,659.12 Cr
- 3-Year and 5-Year CAGR: 22.65%,19.86%
- 3-Year and 5-Year Return: 81.9%, 149.2%
- Expense Ratio:0.58%
Mirae Asset Midcap Fund Direct is managed by Ankit Jain and has the NIFTY Midcap 150 Total Return Index as its benchmark index. Its top 3 holdings include The Federal Bank Ltd, Lupin Ltd, and Bharat Forge Ltd.
5. Nippon India Growth Midcap Fund (1-Year Return: 22.32%)
- NAV: ₹4,809.02
- AUM: ₹41,727.36
- 3-Year and 5-Year CAGR: 27.33%, 24.08%
- 3-Year and 5-Year Return: 103.7%,192.6%
- Expense Ratio:0.72%
Managed by Rupesh Patel, Kinjal Desai, Divya Dutt Sharma, and Lokesh Maru, Nippon India Growth Midcap Fund has the NIFTY Midcap 150 Total Return Index as its benchmark index, and its top 3 holdings include BSE Ltd, The Federal Bank Ltd, and Fortis Healthcare Ltd.
Why Midcap Did Well?
With the rise in popularity of investment in mutual funds through SIPs, there has been a steady inflow of money into mutual funds. This supported midcap stocks from sharp falls. Additionally, the overall market environment fueled growing mid-sized companies to increase sales and profits. Furthermore, compared to large-cap mutual funds, midcap funds had better valuations, and therefore, company earnings and investor confidence got better. Due to these factors, several midcap funds outperformed market indices.
Who Should Consider These Funds?
Since midcap mutual funds are more volatile than the large-cap funds, it’s suitable for people who can invest for at least 5-7 years and who can tolerate moderate to high risks for high returns. These funds are good for investors who want to grow their wealth while handling the short-term market volatility and rupee cost averaging. Investors with short-term financial goals should avoid midcap funds as returns can fluctuate heavily due to market ups and downs.
Conclusion
While midcap funds can provide higher returns, they also expose investors to market volatility. Therefore, investors should match their investments with their risk tolerance and long-term financial goals. Keep in mind that past performance does not assure future returns.
Written by Nila Maria Jacob
