Top Midcap Funds: Latest Stock Picks & Analysis (July 2025)
Top Midcap Funds July 2025 – Latest Stock Picks, Sector Trends & Analysis
(Data as of July 31, 2025)
Introduction – Why July 2025 Was a Turning Point for Midcap Funds
July 2025 has emerged as a defining month for midcap funds in India’s equity market. With the Nifty Midcap 150 outperforming the benchmark indices, investor sentiment shifted heavily towards midcap opportunities. Mutual funds recorded a surge in inflows, particularly in midcap-oriented schemes, as investors sought to capture the growth potential in India’s next generation of market leaders.
This article dives deep into the top 3 midcap funds of July 2025, their latest stock buys, sector preferences, and performance trends—complete with tables, charts, and analysis for ChartMyWealth readers.
Market Overview – Midcap Momentum in July 2025
Midcap stocks continued their rally, supported by robust Q1 FY26 earnings, government capex, and resilient consumer demand. The BSE Midcap index posted a 7.4% monthly gain, outperforming both the Sensex (+3.1%) and Nifty 50 (+3.4%).
Top 3 Midcap Funds of July 2025
We’ve analyzed over 20 mutual fund portfolios to shortlist three top-performing midcap funds based on July 2025 data:
- HDFC Mid-Cap Opportunities Fund
- AUM: ₹55,800 crore
- 1-Year Return: 42.6%
- Latest Buys in July 2025: Trent Ltd, Polycab India, Sundaram Finance
- Top Sector Allocation: Retail, Electrical Equipment, Financial Services
- Kotak Emerging Equity Fund
- AUM: ₹38,420 crore
- 1-Year Return: 39.8%
- Latest Buys in July 2025: Apollo Tyres, Dixon Technologies, Supreme Industries
- Top Sector Allocation: Manufacturing, Consumer Durables, Automobiles
- Motilal Oswal Midcap Fund
- AUM: ₹17,250 crore
- 1-Year Return: 41.2%
- Latest Buys in July 2025: Zydus Wellness, KEI Industries, Cera Sanitaryware
- Top Sector Allocation: FMCG, Infrastructure, Capital Goods
Detailed Table – Latest Buys & Allocations (July 2025)
| Fund Name | Stock Bought | Sector | Weight in Portfolio | July Price Change |
|---|---|---|---|---|
| HDFC Mid-Cap Opportunities | Trent Ltd | Retail | 3.8% | +11.5% |
| HDFC Mid-Cap Opportunities | Polycab India | Electrical Equipment | 4.1% | +9.2% |
| HDFC Mid-Cap Opportunities | Sundaram Finance | NBFC | 2.6% | +6.4% |
| Kotak Emerging Equity | Apollo Tyres | Auto | 3.2% | +7.8% |
| Kotak Emerging Equity | Dixon Technologies | Electronics | 4.3% | +13.1% |
| Kotak Emerging Equity | Supreme Industries | Manufacturing | 2.9% | +8.7% |
| Motilal Oswal Midcap | Zydus Wellness | FMCG | 3.0% | +5.4% |
| Motilal Oswal Midcap | KEI Industries | Infra/Electrical | 3.5% | +12.8% |
| Motilal Oswal Midcap | Cera Sanitaryware | Consumer Durables | 2.4% | +7.3% |
Also Read: NSDL Share Price Target 2025–2030: Guide for Investors
Sector Allocation Insights – July 2025
| Sector | Allocation (%) | Commentary |
|---|---|---|
| Retail | 24% | Strong demand recovery and urban consumption growth driving retail exposure. |
| Electronics | 21% | Capitalizing on the manufacturing push and export opportunities. |
| NBFC (Finance) | 18% | Rising credit demand and rural penetration aiding sector expansion. |
| FMCG | 17% | Stable demand with premiumization in packaged goods and personal care. |
| Infrastructure | 12% | Government push for urban upgrades and transport projects fuels growth. |
| Others | 8% | Diversification into healthcare, IT, and niche manufacturing plays. |
Key Insight:
Retail and electronics sectors dominate July 2025 midcap fund allocations, reflecting fund managers’ conviction in India’s long-term consumption and manufacturing growth story.
Performance Trends – 1-Year CAGR
| Fund Name | 1-Year CAGR (%) | Risk-Adjusted Score | Fund Manager’s Bias |
|---|---|---|---|
| HDFC Mid-Cap Opportunities | 27.4% | High | Quality growth midcaps with strong balance sheets. |
| Kotak Emerging Equity | 25.1% | Medium-High | Sector rotation and tactical bets in infra & NBFCs. |
| Motilal Oswal Midcap Fund | 23.8% | Medium | Concentrated portfolio, higher volatility but strong upside. |
Key Insight:
HDFC Midcap maintains a clear lead in risk-adjusted returns, with steadier performance despite market volatility.
Expert Analysis – Why These Stocks Are Attracting Funds
Fund managers appear to be targeting structural growth stories rather than short-term market trades—reinforcing midcap resilience even in volatile conditions.
- Trent Ltd: Leveraging high-margin formats like Zudio; retail expansion momentum remains strong.
- Dixon Technologies: Benefiting from the ‘Make in India’ push and PLI schemes in electronics.
- KEI Industries: Riding the electrical infrastructure boom and export growth.
Risk Factors & Investor Takeaways
While midcap funds have delivered exceptional returns in the past year, they are inherently more volatile. Investors must align their allocations with their risk tolerance and investment horizon (minimum 5 years).
Key Risks:
- Valuation overheating in popular midcap counters
- Global macroeconomic shocks (US Fed policy, oil prices)
- Domestic policy changes affecting manufacturing and consumption
