Market Recovery Boosts Midcap Funds: 5 Mutual Funds With Up to 22% Gains

Following a market recovery, midcap mutual funds have emerged as top performers, outperforming their peers. Several schemes have delivered returns of up to 22% over the last six months, with the BSE MidCap Index surging 27%.

After a shaky start to the year, midcap mutual funds are once again proving their mettle. With markets staging a strong comeback, these funds have outperformed their peers, emerging as the top wealth creators of 2025. Over the last six months, several midcap schemes have delivered impressive returns, some as high as 22%.

According to various reports, five out of the ten best-performing equity mutual fund schemes in this period belong to the midcap category, showing growth in investor confidence.

Midcaps lead the market recovery

The rebound began after Indian stock markets hit their 52-week lows on April 7, 2025. Since then, equities have witnessed a sharp recovery, led primarily by midcap and smallcap stocks.

The BSE SmallCap Index has gained 32%, while the BSE MidCap Index isn't far behind with a 27% surge. In contrast, the Sensex and Nifty rose 18% and 17%, respectively, during the same period.

Even in the short term, midcaps continue to hold steady, with the BSE MidCap Index climbing 10.3% over six months, outpacing largecaps while avoiding the wild swings of smallcaps.

Top 5 midcap funds leading the charge

Despite the smallcap segment's sharp rebound, midcap mutual funds have turned in more consistent and stable returns, making them investor favourites this year.

Here are the top 5 midcap mutual funds over the past six months:

• Helios Mid Cap Fund – 21.91%
• Invesco India Midcap Fund – 18.12%
• ICICI Prudential MidCap Fund – 17.79%
• Mirae Asset Midcap Fund – 17.27%
• WhiteOak Capital Mid Cap Fund – 16.68%

Also among top performers are TRUSTMF Small Cap Fund (19.36%), HDFC Small Cap Fund (16.50%), and LIC MF Flexi Cap Fund (17.45%). The Motilal Oswal Large & Mid Cap Fund (17.40%) and Helios Large & Mid Cap Fund (16.44%) have also delivered solid returns.

Overall, five of the top ten best-performing equity schemes are midcap funds, showing their growing dominance in India's mutual fund landscape.

Why midcaps are standing out

Midcaps have hit a sweet spot, offering better growth prospects than largecaps while staying more stable than smallcaps. Their strong fundamentals, diversified portfolios, and active management have helped them rebound steadily amid market volatility.

Interestingly, this performance isn't just a six-month trend. On a one-year basis too, four midcap schemes continue to feature among the top ten equity mutual funds, pointing to consistent investor trust in this category.