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Visit Our ABCD PageAditya Birla Capital Limited (“ABCL”) is a listed systemically important nondeposit taking Non-Banking Financial Company (NBFC) and the holding company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 68,400 employees, the businesses of ABCL have a nationwide reach with over 1,740 branches and more than 200,000 agents/channel partners along with several bank partners.
Nationwide Branches
1,740
No. of Employees
68,400
Agents/Channel Partners
2,00,000+
Aggregate Assets
INR 5.91 Lakh Cr
Consolidated Lending Book
INR 2 Lakh CrHealth Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
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Aditya Birla Capital Limited (“ABCL”) is a listed systemically important nondeposit taking Non-Banking Financial Company (NBFC) and the holding
company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans,
Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 68,400 employees, the businesses of ABCL have a nationwide reach with over 1,740 branches and more than 200,000 agents/channel partners along with several bank partners.
Nationwide Branches
1,740
No. of Employees
68,400
Agents/Channel Partners
2,00,000+
Aggregate Assets
INR 5.91 Lakh Cr
Consolidated Lending Book
INR 2 Lakh CrCorporate Governance Policies
Financial and Debt-Related Policies
Business and Partnership Policies
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Get the benefit of attractive return potential with midcap mutual funds. Grow your wealth with the growth potential of midcap companies.
Midcap companies have a good growth potential; when they do, you can benefit from it through high returns.
Midcap mutual funds comprise a diversified portfolio that helps spread the volatility risk while enhancing the return potential.
Being actively managed, midcap funds provide the benefit of professional fund management.
Often exhibit the capacity for greater percentage growth compared to larger, more established companies.
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*Projections/estimations is backtested using historical data.
Most Popular

*Projections/estimations is backtested using historical data.
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
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Midcap companies are listed from 101 to 250 on the stock exchange . Funds investing in equity securities of these companies are called midcap mutual funds.
Minimum 65% allocation in midcap securities
High risk-return trade-off
Suitable for investors with a long-term investment horizon
Invest through SIPs or lump sum
Earn tax-free returns up to Rs.1 lakh if you stay invested
Market capitalisation means the total value of a company’s shares
The total number of listed shares is considered for calculation
The current market value is taken to calculate the market cap
Formula -
Market capitalisation = total number of outstanding shares X current market value per share
Midcap funds are risky since they invest in growing companies
Short-term market volatility might yield negative returns
An investment tenure of 5 years or more is recommended
This mitigates short-term volatility and yield attractive returns
You also get a tax benefit on staying invested for a longer tenure
Returns up to Rs.1 lakh are tax-free if you stay invested for 12 or more months
Returns exceeding Rs.1 lakh are taxed at 10%
For redemption within 12 months, returns are taxed at 15%
Dividends earned, if any, are taxed at your income tax slab rate
Earn dividends on your investment at regular intervals
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
Mid-cap funds are equity-oriented funds and are risky. However, the risk profile lies between large-cap funds and small-cap funds. Midcap funds are riskier than large-cap funds but less risky when compared to small-cap funds.
This choice depends on your investment ability, horizon and strategy. SIPs are good for a disciplined investing approach when you can save regularly to create a corpus. On the other hand, lump sum investing is suitable if you have surplus funds which you want to invest once. Moreover, if you can time the market, lump sum investment is better else you should choose SIPs.
Mid-cap funds can be more volatile in the short term than large-cap funds. However, in the long run, the potential of mid-cap funds to provide good returns is higher than that of large-cap funds.
The expense ratio is the amount charged by your fund house as administrative cost for your investment transaction. A lower expense ratio means that your effective returns are higher, which makes checking the expense ratio important before investing.
Exit load is the charge applied upon redemption of your mid-cap fund before maturity or expiry of the specified term. It varies from fund to fund and is a percentage of the NAV (Net Asset Value) of the fund.
The minimum SIP instalment for a mid-cap fund can be as low as ₹100, and the lump sum limit as low as ₹1000. The numbers vary from fund to fund, so please clarify before investing.
Mid-cap funds are quite suitable for young investors as these funds are known to provide better returns in the long term. Age is an important factor to consider before buying a mid-cap fund. As for first-time investors, it can be a good choice, given you are fully aware of the risks and requirements. Moreover, you should stay invested over a long-term horizon for good risk-adjusted returns.
Mid-cap fund SIPs offer complete flexibility and have no lock-in period. You can redeem your investment at your discretion.
Compare the funds you think suit you based on the following parameters.
• Study the fund performances of your shortlisted funds over the past 5 years. Good performance indicates good stock selection skills of the fund manager.
• Check out the CRISIL liquidity score of the funds to evaluate the liquidity risk.
• Consistency is key for fund managers when it comes to mid-cap funds. The stability of the fund management team is always a good sign.
• Focus on how the funds have performed in downturns rather than upturns. This will give you a clear idea of how risk-safe you can be with your fund of choice.
Mid-cap stocks are those of companies with a moderate market capitalisation. In India, a mid-cap stock usually has a market capitalisation ranging from ₹5000 Cr to ₹20000 Cr. Companies listed from 101 to 250 on the stock exchange are categorised as midcap companies.
Mid-cap funds invest in stocks with a mid-level market capitalisation. Meanwhile, multi-cap funds invest across market capitalisations, with a goal of providing the risk-return benefits of all categories.
• Investment goals: Say you’re planning for an early retirement, or for your own or your child’s higher education. In this scenario, mid-cap funds might work well for you as they tend to provide good returns with a 5+ year investment horizon.
• Returns: These funds might give underwhelming returns in the short-term (less than 5 years). So, you must consider investing in mid-cap funds only if you are prepared to stay patient for good returns in the long term.
• Risk tolerance: Not all mid-cap and small-cap companies grow as expected. They may end up underperforming, or in extreme cases, going bankrupt. You must evaluate your risks carefully before investing.
• Expense ratio: Your fund house will charge you an amount under the head ‘expense ratio’ every year for management and admin costs. Since this eats into your returns, make sure your fund has a low expense ratio.
Market volatility: Volatility need not necessarily be a bad factor. However, it is a risk you must prepare yourself for. Mid-cap companies are highly reactive to market movements. They usually grow in proportion to market upturns and downturns.
Business risk: Mid-cap companies are still in the growth phase and face a lot of risk business-wise. This makes your investments also prone to the risks of companies suddenly underperforming or even going bankrupt in response to severe market conditions or world events. (for example, the pandemic, wars, etc.)
Cost: This refers to all kinds of associated with mid-cap funds such as expense ratio and exit load. Mid-cap funds tend to have a higher expense ratio. If you need to withdraw or redeem before time in any circumstance, a high exit load can hurt your returns.
Mid-cap funds are fairly sensitive to market movements and economic changes in the world. They tend to appreciate with the market and vice versa. There is an equal potential to earn returns as well as lose as per market movements which can not always be predicted. Hence, the best time to enter a mid-cap fund is when the market is on a high. However, staying invested is key in order to even out upcoming short-term volatility and downturns. The ideal investment horizon is 5+ years if you are seeking significant returns.
Seasoned investors: Seasoned investors are better equipped to understand market volatility and the higher risks associated with mid-cap funds. They know how to stay patient and not withdraw investments when downturns occur, and to play the long game in anticipation of better returns.
Investors with a longer time horizon: The ideal investment horizon for mid-cap funds is 5+ years. If this period aligns with your investment goals, you may opt for mid-cap funds.
Investors with a good risk appetite: As mid-cap companies are sensitive to market movements and are pretty volatile, they carry high risks. Investors with a higher risk appetite are ideal for these funds.
Invest in funds listed and traded on the stock exchange
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