Top 4 Midcap Mutual Funds with Highest AUM – See Which One Gave the Best SIP Returns in 2025

Synopsis- Mid Cap Mutual Funds tend to create a compromise of stability and high-growth potential that characterizes large caps and small caps respectively. Investors usually examine the AUM (Assets Under Management) as an indicator of trust, and consistency of performance among dozens of those in the market. Here in this article, we rank the top 4 mid cap funds by their AUM and we will compare their SIP XIRR returns over various periods (1Y, 3Y, 5Y and 10Y) and compare their performance.

Top 4 Mid Cap Mutual Funds by AUM 

1. HDFC Mid Cap Fund Direct Growth

• Fund Size: ₹84,061 Cr
• NAV: ₹213.15
• Expense Ratio: 0.74%
• Minimum Lumpsum Investment: ₹100
• Minimum SIP Investment: ₹100

2. Kotak Midcap Fund Direct Growth

• Fund Size: ₹57,101 Cr
• NAV: ₹155.67
• Expense Ratio: 0.37%
• Minimum Lumpsum Investment: ₹100
• Minimum SIP Investment: ₹100

3. Nippon India Growth Mid Cap Fund Direct Plan Growth

• Fund Size: ₹39,065 Cr
• NAV: ₹4,495.68
• Expense Ratio: 0.71%
• Minimum Lumpsum Investment: ₹100
• Minimum SIP Investment: ₹100

4. Motilal Oswal Midcap Fund Direct Growth

• Fund Size: ₹33,053 Cr
• NAV: ₹115.75
• Expense Ratio: 0.70%
• Minimum Lumpsum Investment: ₹500
• Minimum SIP Investment: ₹500

Also read: Top Performing Small Cap Mutual Funds with Over 25% Returns in Last 5 Years – Check If You’re In

SIP XIRR (%) Comparison of Mid Cap Funds

Note: Returns are SIP XIRR as of 29-07-2025

• Short-Term Volatility: During the 1-year SIP, Kotak Midcap has outperformed the other 4 giving the highest returns. The particularly sudden dive of Motilal Oswal (2.9%) is a good reminder that even hot funds can fall in the short term stages.
• Steady Performers: SIP of 3Y and 5Y, all the funds give above averages, with Motilal Oswal outperforming by a huge margin. This signals that there was a high amount of alpha creation with a broader bull market in the mid cap.
• Long-Term Leadership: In 10-year SIPs, all the four funds outperformed the index, which underlines the strength of disciplined SIP investing. Motilal Oswal once again ranks best though the margin is less, indicating that in the long run the price stability and fluctuations are more important than short-term performance.

Table showing Mid Cap Mutual Fund With Largest AUM

• HDFC has the highest AUM which shows the investor confidence despite not being the top performer in the segment.
• Kotak has the lowest expense ratio (0.37%). This will greatly benefit the long term investors.
• Motilal Oswal, which is placed 4th in terms of AUM, is a performance leader in terms of 3Y, 5Y and 10Y of SIP returns, but having higher entry limits.
• The NAV of Nippon India is disproportionately high because of the older inception. This does not have any effect on performance but it can intimidate new investors in terms of appearance.

Final Thoughts

Although size (AUM) may serve as an indicator of a high level of trust and credibility of the fund house; performance stability, expense ratio and SIP behavior all turn out to be more important as wealth creation. When it comes to long term investing with the objective of having mid-cap exposure with SIPs, you can invest in Motilal Oswal due to its returns where Kotak Midcap is also a low cost alternative with balanced exposure. However, the four funds have comfortably beaten the benchmark over long run periods hence, making them good companions in a diversified portfolio.

Written by Prajwal Hegde