Mid-cap inflows crossed Rs 6,000 crore in July: What the top 3 mid-cap mutual funds bought and sold

Mid-cap funds continued to attract investor money in July, receiving Rs 6,192 crore, marginally higher than Rs 6,090 crore in June.

Together with small-cap funds, which received Rs 7,768 crore, the two categories attracted Rs 13,960 crore, or 56.5 percent of the Rs 24,697 crore that flowed into equity mutual funds during July.

The combined inflow was the highest since at least December 2025, based on AMFI data analysed, and significantly higher than June, when mid- and small-cap funds together accounted for around 40 percent of equity inflows.

But where did the money entering mid-cap funds go?

We looked at the three mid-cap funds that received the highest inflows in July, HDFC Mid Cap Fund, Nippon India Growth Mid Cap Fund and Invesco India Midcap Fund, and compared their portfolios, cash holdings, concentration, turnover and returns.

What stands out is that despite maintaining broadly similar mid-cap allocations, the three funds are building their portfolios very differently.

HDFC Mid Cap Fund: Highest inflows, but very little portfolio churn

Managed by Chirag Setalvad, HDFC Mid Cap Fund received the highest inflows among mid-cap schemes in July at Rs 1,343 crore.

The fund held 79 stocks, with around 32 percent of the portfolio concentrated in its top 10 holdings.

What particularly stands out, however, is its turnover. The fund’s turnover ratio was just 2.59 percent, significantly lower than the other two funds analysed.

It added three stocks during July, CIE Automotive India, Havells India and Petronet LNG, while making no exits.

Around 65.11 percent of the portfolio was invested in mid caps, with another 17.56 percent in small caps and 10.39 percent in large caps. Cash and cash equivalents stood at 6.93 percent, the highest among the three funds.

The fund returned 2.92 percent in July and 8.67 percent over the past year. Its three- and five-year annualised returns stood at 18.78 percent and 19.68 percent, respectively.

Nippon India Growth Mid Cap Fund: 100 stocks and lowest concentration

Nippon India Growth Mid Cap Fund, managed by Rupesh Patel, received around Rs 963 crore during July.

Its portfolio stands out for its diversification. The fund held 100 stocks, the highest among the three, while only 25.04 percent of the portfolio was concentrated in its top 10 holdings — the lowest of the group.

It added GSPL Transmission, Piramal Finance and RBL Bank during July and did not exit any stocks.

The fund had around 65.72 percent invested in mid caps, 21.93 percent in large caps and 11.23 percent in small caps.

Another notable feature is its cash position. At just 1.05 percent, Nippon India had the lowest cash holding among the three funds. Its turnover ratio stood at 12 percent.

The fund gained 1.26 percent in July, while its one-year return stood at 9.70 percent. Over three and five years, it delivered annualised returns of 20.43 percent and 18.85 percent, respectively.

Invesco India Midcap Fund: Fewer stocks, bigger bets

Invesco India Midcap Fund takes a noticeably different approach.

Managed by Aditya Khemani, the fund received around Rs 770 crore in July but held just 41 stocks, less than half the number held by Nippon India.

At the same time, nearly 49 percent of its portfolio was concentrated in the top 10 holdings, making it by far the most concentrated of the three funds.

Portfolio activity was also different. Invesco added only Manipal Health Enterprises during July, while exiting four stocks, Apar Industries, Cholamandalam Financial Holdings, Hexaware Technologies and Sobha.

Its turnover ratio stood at 31 percent, the highest among the three.

Around 60.86 percent of the portfolio was invested in mid caps, while small and large caps accounted for 19.16 percent and 16.47 percent, respectively. Cash stood at around 3 percent.

Invesco also recorded the strongest one- and three-year performance among the three, with returns of 10.22 percent and 24.04 percent, respectively. Its five-year annualised return stood at 19.17 percent.

How differently are the three portfolios built?

All three funds have around 61-66 percent invested in mid-cap stocks, but how they build the rest of their portfolios varies significantly. Nippon India spreads its investments across 100 stocks, HDFC combines a moderately diversified portfolio with very low turnover, while Invesco runs a much tighter portfolio with nearly half its money concentrated in its 10 largest holdings.

For investors comparing mid-cap funds, these differences in concentration, portfolio churn and cash levels can be just as important to understand as recent returns.

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