Quant, Helios, Motilal Oswal: Midcap funds aren’t built the same; here’s how portfolios differ

Midcap mutual funds may belong to the same category, but their portfolios can look markedly different. An August 2026 snapshot of 18 midcap funds shows wide variations in exposure to large-, mid- and small-cap stocks, as well as in overall equity, debt and cash allocations.

The data, covering ₹4.75 lakh crore in combined assets under management (AUM), shows that fund managers have significant flexibility in how they construct portfolios within the midcap category.

Large-cap exposure varies sharply

Motilal Oswal Midcap Fund has the highest large-cap allocation among the 18 funds at 25.3%, according to the snapshot. It is followed by Nippon India Mid Cap Fund at 21.3%, ICICI Prudential Mid Cap Fund at 21% and Axis Midcap Fund at 20.3%.

At the other end, Helios Mid Cap Fund has just 4% allocated to large-cap stocks. JM Mid Cap Fund has 4.6%, while HSBC Mid Cap Fund has 5.1%.

The overall category median for large-cap exposure stands at 15.2%, highlighting how significantly individual portfolios can deviate from the middle of the category.

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Quant leads mid-cap allocation

The variation is also visible in exposure to the stocks that form the core of the midcap category.

Quant Mid Cap Fund has the highest mid-cap allocation at 74.6%, followed by Canara Robeco Mid Cap Fund at 73.9%, Axis at 73.7% and Mirae Asset Midcap Fund at 71.2%.

The category median stands at 70.3%.

Motilal Oswal, meanwhile, has 70.7% in midcaps despite having the highest large-cap allocation in the group. Its small-cap exposure is only 3.9%.

Helios has highest small-cap exposure

The sharpest contrast emerges in small-cap allocation. Helios leads with 30.1%, followed by HSBC at 26.1%, JM at 25.1% and WhiteOak at 23.8%.

This compares with the category median of 15.8%. Motilal Oswal sits at the other end with just 3.9% in small caps.

The figures show that investors choosing a midcap fund may still get substantially different levels of exposure to smaller companies depending on the scheme.

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Equity exposure is high across the category

Most of the funds have portfolios overwhelmingly invested in equities. Helios has the highest equity allocation at 99.5%, followed by HSBC at 99.2%, JM at 99% and Nippon at 98.8%.

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The category median equity allocation is 97.5%, with debt at 2.8% and cash at 0%.

Cash allocation also varies. Franklin Mid Cap Fund has the highest cash allocation at 4%, while Axis has 1% and Kotak has 0.9%.

Overall, the August snapshot suggests that the midcap label does not translate into identical portfolio construction. The differences in large-, mid- and small-cap exposure can materially change the underlying risk and market-cap profile of individual schemes.