Top Mid-Cap Mutual Funds to Invest in February 2026

Mid-cap mutual funds are gaining attention from investors seeking higher growth potential than large-cap funds, but with less volatility than small-cap funds. ETMutualFunds has recently shortlisted several top-performing mid-cap funds based on a rigorous methodology considering mean rolling returns, consistency over the past three years, downside risk, outperformance, and asset size, with a minimum asset threshold of Rs 50 crore.

Selection Methodology

The selection process prioritizes funds demonstrating strong and consistent returns, managing downside risk effectively, and exceeding benchmark performance. Funds with an asset size below Rs 50 crore are excluded from consideration. ETMutualFunds outlines these criteria for identifying leading mid-cap investment opportunities.

Top 5 Mid-Cap Funds (February 2026)

Here’s a look at five mid-cap funds identified as strong contenders for investment in February 2026:

• Motilal Oswal Midcap Fund Direct-Growth: This fund has delivered a five-year return of 23.85%.
• Axis Midcap Fund: Launched in February 2011, this scheme has provided a three-year return of 21.5% based on rolling returns. Its performance has improved, moving from the fourth to the third quartile in the last nine months.
• PGIM India Midcap Opportunities Fund: Established in December 2013, this fund has achieved a three-year rolling return of approximately 26.4%. It has remained in the fourth quartile for the preceding 22 months.
• Invesco India Midcap Fund: Launched in April 2007, this fund has offered a three-year rolling return of around 24.5%. It has recently improved its ranking, moving from the second to the first quartile in the last nine months.
• Kotak Midcap Fund: Launched in March 2007, this scheme has generated a three-year return of approximately 24%, and currently resides in the second quartile after a five-month period.

Understanding Mid-Cap Funds

Mid-cap funds invest in companies ranked between 100 and 250 by market capitalization. These funds are generally considered suitable for investors with a medium to long-term investment horizon (at least three to four years) who are comfortable with moderate risk in pursuit of potentially higher returns.

Considerations for Investors

While mid-cap funds offer growth potential, it’s crucial to remember that they similarly carry inherent risks. Market fluctuations and economic conditions can impact fund performance. Investors should carefully consider their risk tolerance and investment goals before investing in any mid-cap fund.