Investing in mid-cap stocks has gained significant traction in 2025 as these companies offer a sweet spot between the stability of large caps and the aggressive growth potential of small caps. One of the standout performers in this category is the Motilal Oswal Mid Cap Fund — a fund that has consistently delivered robust returns and grabbed investor attention across India.

Why Motilal Oswal Mid Cap Fund?

Motilal Oswal Mid Cap Fund follows a focused strategy investing predominantly in quality mid-cap companies with strong growth potential. The fund's philosophy is based on a mix of Quality, Growth, Longevity, and fair Price (QGLP). With an asset under management (AUM) of over ₹26,000 crores and a 1-year return rate close to 36%, this fund has become a top choice for investors seeking long-term capital appreciation.motilaloswal+1

Top 10 Stock Holdings of Motilal Oswal Mid Cap Fund (2025)

The fund maintains a concentrated portfolio of about 30 stocks, with its top 10 holdings forming a significant portion of the assets. Here’s a snapshot of these stocks along with their sector focus:

Among these, Dixon Technologies stands out as my personal favorite due to its strong footprint in the electronics manufacturing services (EMS) sector, a niche with tremendous growth potential driven by rising electronics demand globally and domestically.moneycontrol+1

What Makes These Stocks a Good Fit?

• Quality & Growth: Each stock is chosen based on strong fundamentals, high return on capital, and prospects of sustainable growth.

• Sectoral Diversity: From IT services and healthcare to retail and fintech, the portfolio balances sector representation to harness varied growth opportunities.

• Longevity: The fund invests in companies with long-term competitive advantages, embracing businesses poised for steady expansion.

Performance Highlights and Investor Takeaway

Motilal Oswal Mid Cap Fund has delivered remarkable gains for investors, outperforming many peers with a 3-year return exceeding 36% and a 5-year return above 34%. However, the fund’s concentrated holdings imply a higher risk, as the performance can be significantly affected if the major bets falter. That said, its benchmark-agnostic approach and flexibility across mid, large, and small caps allow it to adapt efficiently to market trends.bullsmart+1

Conclusion

For investors eyeing mid-cap exposure through a professionally managed fund with a proven track record, Motilal Oswal Mid Cap Fund offers an exciting opportunity. Its carefully curated portfolio reflects a blend of high-growth stocks like Dixon Technologies, Coforge, and Paytm, making it a compelling choice for those willing to balance growth with moderate risk.

If Dixon is your favorite too, or if another stock from this list catches your eye, share your thoughts and experiences with this fund in the comments!