Long-term investment options in India's prominent equity funds for achieving substantial growth.
In the dynamic world of Indian mutual funds, mid-cap funds continue to attract long-term investors seeking a balance between growth and diversification. As of July 2025, several mid-cap funds have demonstrated impressive long-term growth.
Among the standout performers is the Union Midcap Fund, boasting a 5-year CAGR of around 30.44%. The Mirae Asset Midcap Fund follows closely with a 5-year CAGR of about 27.47%. Another noteworthy fund is the Invesco India Mid Cap Fund, recognised for its 10-year CAGR of approximately 19.48% and a focused, quality-growth strategy.
The Kotak Emerging Equity Fund is also a strong contender, known for its scalable and sustainable business holdings. Quant Mid Cap Fund, an aggressive, data-driven fund, offers good risk-adjusted returns (Sharpe ratio 0.60). Lastly, the Sundaram Midcap Fund focuses on sector leaders with strong earnings.
These funds have been selected based on consistent long-term growth metrics such as CAGR, alpha, beta, and Sharpe ratio, as well as fund management quality and risk management approaches.
For those seeking a broader mid-cap and large & mid-cap category with some mid-cap exposure, funds like the Axis Growth Opportunities Fund, Mirae Asset Large & Midcap Fund, Canara Robeco Emerging Equities Fund, Sundaram Large and Midcap Fund, Kotak Equity Opportunities Fund, and Quant Large & Mid Cap Fund are worth considering. These funds have been shortlisted based on rolling 3-year mean returns and consistency measures like the Hurst exponent as of July and August 2025.
In summary, for strictly mid-cap exposure and strong long-term growth, the Union Midcap Fund, Mirae Asset Midcap Fund, Invesco India Mid Cap Fund, and Kotak Emerging Equity Fund are highly recommended. On the other hand, funds like Mirae Asset Large & Midcap Fund and Axis Growth Opportunities Fund provide strong performance in combined large and mid-cap segments suitable for a growth-oriented long-term portfolio in India.
Mid-cap funds have traditionally offered an appealing trade-off between growth and diversification for long-term holding periods. Notable examples include the Kotak Mid Cap Fund with its deep conviction in select midcaps, and the Motilal Oswal Midcap Fund with a stellar 10-year rolling CAGR of 20.50%.
As of July 2025, the Nifty Midcap 150 TRI has outperformed largecap and smallcap indices, particularly since 2020. The Edelweiss Mid Cap Fund, with a 10-year CAGR of around 20.03%, is another fund that has consistently delivered strong returns.
In 2025, mid-cap mutual funds have gained increasing attention from long-term investors. Funds like the HDFC Mid Cap Fund with a 10-year CAGR of 19.03% and the Motilal Oswal Midcap Fund with major holdings in Coforge, Persistent Systems, and Trent are prime examples of this trend.
References:
[1] Financial Express, 2025. "Top Performing Mid-Cap Mutual Funds in India." Accessed August 1, 2025.
[2] Moneycontrol, 2025. "Best Mid-Cap Mutual Funds to Invest in 2025." Accessed August 1, 2025.
[3] ValueResearchOnline, 2025. "Mid-Cap Funds: A Guide for Investors." Accessed August 1, 2025.
[4] Mint, 2025. "How to Choose the Right Mid-Cap Fund." Accessed August 1, 2025.
[5] Business Standard, 2025. "Understanding Mid-Cap Mutual Funds." Accessed August 1, 2025.
- In the Indian mutual funds market, mid-cap funds have been a popular choice among long-term investors due to their potential for growth and diversification.
- The Union Midcap Fund, Mirae Asset Midcap Fund, Invesco India Mid Cap Fund, and Kotak Emerging Equity Fund are highly recommended for strictly mid-cap exposure and strong long-term growth.
- Funds like Mirae Asset Large & Midcap Fund and Axis Growth Opportunities Fund offer strong performance in the combined large and mid-cap segments, making them suitable for a growth-oriented long-term portfolio in India.
- The Kotak Mid Cap Fund and Motilal Oswal Midcap Fund are notable examples of mid-cap funds that have offered appealing growth and diversification trade-offs for long-term holding periods.
- Investors should consider mid-cap mutual funds as they have gained increasing attention in the bear market of 2025.
- To make informed decisions, investors can refer to various resources such as the Financial Express, Moneycontrol, ValueResearchOnline, Mint, and Business Standard for insights on top-performing mid-cap mutual funds in India.
