The Mid Cap Fund category delivered average returns of 18.3% CAGR in the last 5 years.
Out of the 25 funds in the category, 9 funds delivered returns of more than 20% during this period.
The top-performing fund returned 23.4% during this period while the bottom-performing fund returned 12.3%.
In comparison the Nifty Midcap 150 – TRI index gained 18.8%.
In this editorial, we will know in detail about Invesco India Mid Cap Fund, one of the high return mid cap funds in the last 5 years.
It is a lesser-known but process-driven mid-cap fund that has delivered superior risk-adjusted returns over the years and has stood strong besides its large-sized peers.
The fund has demonstrated its ability to navigate market uncertainties by tapping into quality, high-growth opportunities and has performed consistently well across diverse market conditions.
Fund Overview – Invesco India Mid Cap Fund
Launched in April 2007, Invesco India Midcap Fund is a growth-oriented midcap-biased fund that focuses on investing in stocks of high-quality mid-sized companies.
The fund uses a bottom-up approach to stock-picking with a top-down overlay.
It focuses investments in companies that are trading at reasonable valuations and takes overweight position in them.
While the fund has seen its share of ups and downs, it has proved its ability to bounce back and deliver encouraging long-term performance.
The fund’s corpus has more than doubled in the last two years to Rs 135 billion as of May 2026.
In the last couple of years, Invesco India Mid Cap Fund has shown a strong turnaround performance and managed to outpace some of the prominent peers in the category.
How Has Invesco India Mid Cap Fund Performed in the Past?
Invesco India Mid Cap Fund holds a robust long-term performance record.
The fund witnessed a muted growth between 2021 and 2023 which temporarily impacted its long-term returns.
However, it has shown notable recovery from 2024 onwards.
In the last 1-year, the fund generated absolute return of 11.7% compared to the category average of 9.5% and 9% delivered by the Nifty Midcap 150 – TRI index.
Over the longer time frames of 3-years and 5-years, gained 26.5% and 22.3%, respectively, surpassed many of its peers as well as the benchmark.
The fund’s superior performance in the recent past has helped the fund rank high in terms of risk-adjusted returns.
Its Information ratio of 0.89 is currently one of the best in the category and indicates its ability to generate excess returns relative to a benchmark, adjusted for the risk taken.
What is the Portfolio Strategy of Invesco India Mid Cap Fund?
Invesco India Mid Cap Fund holds a well-diversified portfolio of 45-50 stocks spread across sectors.
It prefers companies with stable business models, healthy balance sheet, attractive return ratios, strong cash flow, and credible management.
As of 31 May 2026, the fund held 42 stocks in its portfolio, with the top 10 stocks forming 46.7% of its assets.
The top holdings in the portfolio are BSE, Prestige Estates Projects, The Federal Bank, AU Small Finance Bank, and Eternal.
In the last one year, the fund’s portfolio turnover has ranged between 30% to 45% signifying moderate churning of the portfolio.
Its portfolio is currently diversified across a host of cyclical, sensitive, and defensive sectors.
Finance and bank stocks are its top sector holdings, followed by retail, healthcare, realty, and pharma, among others.
As of 31 May 2026, the fund held an exposure of 64% in mid-caps, along with 16.7% in small caps and 17.9% in large caps, with the balance in cash.
Conclusion
Invesco India Mid Cap Fund has proved its ability to sail through tough market conditions and managed to limit the downside risk for its investors.
Moreover, it has also done well during market recoveries.
The focus on fundamentally sound quality names in the mid-cap domain, tactical diversification to large and small caps, and cautious stock picking has helped it reward its investors.
However, its performance may at times be in contrast to the midcap index and also its peers that hold significant exposure to momentum-driven mid-caps.
Its performance may also deviate from funds that hold lower exposure to large and small cap stocks.
#Table Note: Data as of June 22, 2026
The securities quoted are for illustration only and are not recommendatory
Past performance is not an indicator for future returns.
Returns are on a rolling basis and in %. Direct Plan-Growth option.
Those depicted over 1-Yr are compounded annualised.
Risk ratios are calculated over a 3-year.
Happy Investing
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