Mid-cap stocks have always been a major attraction for investors seeking the perfect balance between growth potential and stability. Positioned between large-cap safety and small-cap aggressiveness, mid-caps provide opportunities to take part in India’s growth story while shielding from extreme volatility. Among the popular mutual funds of this segment, the Motilal Oswal Mid Cap Fund has gained immense popularity among many investors.
Motilal Oswal Mid Cap Fund stands out in this segment as it offers investors exposure to promising companies poised for the next stage of growth. It is known for its focused approach, strong track record, and expert fund management. In this blog, we will explore why it is becoming so popular in the Indian stock market.
What Is Motilal Oswal Mid Cap Fund?
Motilal Oswal MidCap Fund was launched in February 2014. It is an actively managed equity fund that focuses on high-growth mid-cap companies with a rank between 101 and 250 in terms of market capitalization. Its strategy is identifying mid-sized companies with strong fundamentals, scalable business models, and high growth potential. These companies are often in their growth phase, expanding market share, innovating, and exploiting structural trends.
The fund follows a bottom-up stock-picking approach, investing in businesses with scalable models, quality management, and competitive advantages. With a fund size of more than 34,700+ crore as of September 2025, it has one of the largest mid-cap asset pools in India.
Why Motilal Oswal Mid Cap Fund Is an Investor Favourite?
There are several reasons that are responsible for the popularity of the Motilal Oswal Mid Cap Fund among investors. Some of those reasons are as follows:
Strong Long-Term Performance
The fund has consistently delivered impressive returns with 24.03% returns in the past 3 years and 31.53% returns in 5 years, making it one of the best performers in the mid-cap category. While its near-term returns can be volatile, over the long term, it has given investors attractive returns as compared to benchmarks.
Focused and Quality Stock Selection
Motilal Oswal Mid Cap Fund is known for its focused strategy, which means it can give attractive returns carry risks. However, it is less compared to very high risk mutual funds.
The fund concentrates on a limited no. of stocks and avoids over-diversification. Emphasis on quality mid-cap companies with strong competitive advantages, growing market share, and healthy balance sheets further enhances potential upside.
Professional Management and Research Edge
The fund managers of Motilal Oswal MidCap Fund use the proprietary framework of Motilal Oswal’s QGLP (Quality, Growth, Longevity, and Price) for identifying stocks that combine sustainable earnings growth with reasonable valuations. This disciplined research process is a big draw for investors looking for data-driven and methodical portfolio construction.
Competitive Expense Ratio
With an expense ratio of approximately 1.55%, the fund is cost-efficient compared to actively managed peers in the mid-cap space. Lower costs mean investors keep more of their generated returns, aiding long-term accumulation with comparatively high net returns as compared to its peers.
- Diversification in High-Growth Sectors
By investing across sectors (balancing discretionary goods, tech, manufacturing, etc), the fund mitigates the risk of concentration and offers greater exposure. This plays an important role during periods of sectoral rotation when individual industry performance may vary, providing stability to the overall portfolio.
Final Thoughts
Motilal Oswal Mid Cap Fund’s popularity stems from its ability to tap the growth potential of India’s mid-sized companies and manage risk through well-researched selection and focused portfolio construction. By striking the right balance between growth and diversification, it has carved a niche for itself in the mid-cap category.
(DISCLAIMER: The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.)
Must Read:
- A Complete Guide On How To Pitch Investors For Funding?
- Top 10 Crowdfunding Sites to Raise Funds
- Grow Your Funds Safely with Money Market Solutions in Singapore
- Importance of Term Insurance for First-Time Investors
