INCOME TAX15 Sept 2026
Mid-cap funds are hot with investors. What’s driving the rush and should you invest now? Here’s what fund managers say | Mint
Mid-cap mutual funds are drawing far more investor money, with their share of net flows rising from about 14% in FY23 to nearly 20% now. Earnings growth, domestic demand and a formalising economy are pulling people in. But valuations sit above long-term averages, so fund managers warn that careful stock selection and spreading money across market caps matter more than chasing the trend.
Key Statutory Highlights
- The Nifty Midcap 150 has delivered earnings growth of around 17% CAGR over the past nine years.
- The index has delivered a 16.3% CAGR return over the past 10 years.
- The share of net flows going into mid-cap funds rose from about 14% in FY23 to almost 20% year-to-date.
Actionable Advice for Taxpayers / Founders:If you are considering mid-cap funds, check what the scheme actually holds and how it fits your overall mix, and spread your money across market caps instead of going only by recent performance. Fund managers say earnings visibility differs a lot between companies, so a quick review with your advisor on your goals and risk comfort is sensible.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: