Mutual funds: Over the last three years, the CAGR return on these mid-cap funds has exceeded 25%. List of checks

According to Sebi's classification of mutual fund schemes, mid cap mutual funds are those that allocate at least 65% of their assets to mid cap companies.

We have put together a list for you if you intend to invest in mid-cap mutual funds and are looking for the schemes that have recently produced outstanding results. Six mid-cap mutual funds that have had an annualized return of above 25% during the last three years are listed.

For those who don't know, mid-cap funds are those that allocate a larger portion of their assets (over 65%) to mid-cap stocks, which offer a greater potential for return.

Mid-cap mutual funds: what are they?

According to the Sebi's classification of mutual fund schemes, mid cap mutual funds are those that allocate at least 65% of their capital to mid cap equities. Additionally, when listed firms are rated according to their market capitalization, mid-cap stocks are the securities of corporations that rank between 101 and 249.

We highlight six mid-cap mutual funds that have produced outstanding returns over the last three years, or more than 25%.

The table below shows that, over the last three years, the Edelweiss Mid Cap Fund has provided an annualized return of little over 25%, while the Invesco India Mid Cap Fund has provided the greatest annualized return of 28.46%.

As seen in the above table, other top-performing mid-cap funds that provided returns of more than 25% are HDFC Mid-Cap Fund, Motilal Oswal Mid-Cap Fund, Nippon India Growth Mid-Cap Fund, and White Oak Capital Mid-Cap Fund.

"Mid-cap mutual funds are riskier than large-cap ones, but safer than small-cap ones. However, it's important to keep in mind that some mid-cap stocks may eventually grow into huge ones. Since mid-cap funds are highly volatile, it is advised to invest a percentage of your portfolio to them, but not too much, according to wealth advisor and chartered accountant Deepak Aggarwal of Delhi.

It is important to note that a scheme's past growth does not necessarily indicate its future performance. To put it another way, a scheme's past success does not guarantee that it will continue to perform exceptionally well in the future.

Note: The sole objective of this story is to provide information. Before making any investment-related decisions, please consult an investment advisor registered with SEBI.