Here are the top 5 best midcap funds to invest in this year:

SBI Magnum Midcap Fund

SBI Magnum Midcap Fund is one of the best midcap funds available in the market today. The fund has a solid track record and has delivered consistent returns over the years. The fund managers are experienced and have a good understanding of the midcap segment.

The fund has a low expense ratio, which makes it an attractive option for investors. The fund has a good track record of beating its benchmark index over 1, 3, and 5-year periods.

Motilal Oswal Midcap 30 Fund

The Motilal Oswal Midcap 30 Fund is a great midcap fund for investors looking for exposure to a diversified basket of mid-sized companies.

The fund has a strong track record, having outperformed its benchmark index, the Nifty Midcap 100, in 7 out of the last 10 years.

The fund has a low expense ratio of 0.61%, making it one of the most cost-effective midcap funds available.

The fund has been a little volatile over its life, posting 4 negative years in total. However, there was an average of 2 negative years in every 3-year period. Hence, it shouldn’t be a big concern for most investors. And considering that midcaps are riskier than large caps, a measure of volatility is also to be expected from such funds.

Axis Midcap Fund

If you're looking for the best midcap fund with a solid track record, the Axis Midcap Fund is a great option. The fund has been around for over 10 years and has consistently outperformed its benchmark, the Nifty Midcap 100 Index. Over the past five years, the fund has returned an impressive 16.5% per year.

One of its top holdings is Hindustan Construction, which has posted an average annual return of 27% for three years running. The fund also holds shares in companies like DHFL, Dr. Reddy's, and Geometric. If you want exposure to midcaps, but don't have too much money to invest at a time, you can use SIPs (systematic investment plans) on mutual funds like these.

UTI Mid Cap Fund

UTI Mid Cap Fund is one of the best midcap funds available in India. The fund was launched in 2002 and has since given excellent returns. The fund invests in a diversified portfolio of mid-sized companies.

The fund has a track record of outperforming its benchmark and peers. UTI Mid Cap Fund is a good option for investors looking for long-term capital appreciation.

The fund has a five-star rating and outstanding three-year returns of 37%. The management expense ratio (MER) on this fund is an average of 0.7%. There are four other mutual funds from UTI which can be explored by investors who want exposure to midcaps.

Tata Midcap Growth Fund

This fund was launched in 1995 and has since delivered annualized returns of 16.1%, making it one of the best midcap funds in India. The fund has a portfolio of 83 stocks, with the top 10 holdings accounting for 36.5% of the total assets.

The top 10 holdings are a diverse mix of small- and mid-cap companies, some of which you’ll recognize from their larger siblings in more popular Nifty funds. For example, Tata Power is one of four holdings in both Tata Midcap Growth and Tata Large Cap Fund. For exposure to midcaps without putting too much capital at risk, Tata Midcap Growth is a good choice.

Conclusion

If you're looking for stability and potential growth, midcap stocks are a great option. And these five funds are some of the best in the business. Each has a solid track record and is well-positioned for continued success. So if you're ready to start investing in midcaps, these are the funds you should consider.