Midcap funds: Invest amid valuation comfort, strong earnings growth outlook

Enter with 10-year horizon; exposure can range from 20-40 per cent of portfolio, depending on risk appetite

The midcap segment of the equity market continues to command investors’ attention. Midcap funds recorded inflows of ₹5,330 crore in August 2025 — the highest ever in a single month, according to the Association of Mutual Funds 

in India (Amfi). 

“Inflows in midcap funds have been very consistent at around 8-9 per cent of total equity net inflow over the past four to five years. In August, it was even higher at around  11 per cent. This clearly shows the increased conviction and maturity of investors around this category, which has strong earnings growth potential over the medium term,” says  Ankit