15 stocks that made this mid-cap fund the top performer

Summary: In a year when nearly half of mid-cap funds slipped into the red, one fund quietly delivered a 16.7 per cent gain — almost double the next best’s 9.3 per cent. The secret? Fifteen companies played a pivotal role in powering its winning streak. So, here’s the fund, and the stocks, behind its standout run…

The last year hasn’t been kind to mid-cap investors. Out of 30 mid-cap funds, 40 per cent delivered negative returns, and the rest barely managed to keep their heads above water. In such a market, most managers were focused on damage control rather than delivering standout performance.

And yet, one fund not only survived but thrived: Invesco India Mid Cap Fund.

While the mid-cap fund category struggled, this fund posted a striking 16.7 per cent return, the only double-digit gainer in its peer group. To put that in perspective, the second-best performer — WhiteOak Capital Mid Cap Fund — managed a respectable but far more modest 9.32 per cent.

That’s over seven per cent higher, which brings us to the obvious question: “How?”

Not a flawless year, and that’s the surprise

When we examined the fund’s portfolio, an interesting truth emerged. This wasn’t a case of a fund riding a perfect wave of stock picks.

In fact, several of its holdings took steep falls over the last 12 months:

• ABB India: Fell 34 per cent before the fund exited in July 2025
• Astral: Down over 30 per cent in the last 12 months, and yet the fund has increased its allocation, signaling continued conviction
• Carborundum Universal: Down 45 per cent, but again, allocation increased recently
• Deepak Nitrite: Down 36 per cent. However, the fund exited this investments around April
• Grindwell Norton: Down 39 per cent
• Sonata Software: Down 38.6 per cent
• Sundram Fasteners: Down over 30 per cent, yet allocation was recently increased

Most investors would expect such large drops to drag down overall returns, and in most funds, they did. But Invesco’s performance tells a different story.

The stocks that helped the fund’s 12-month performance

The winners more than compensated for the losers.

This fund didn’t just have “some” good picks, it had a series of massive outperformers that powered the fund’s 12-month performance ahead of the pack:

1. BSE: The crown jewel, up a jaw-dropping 190 per cent in the last one year
2. Multi Commodity Exchange (MCX): Up nearly 86 per cent, though the fund exited and entered the stock at different points in 2025
3. JK Cement: Up nearly 70 per cent, with allocation increased along the way
4. Max Financial Services: Gained about 52 per cent, with the fund upping its allocation to this company as well
5. Bharti Hexacom: Gained nearly 50 per cent in a year
6. InterGlobe Aviation (Indigo): Up 42.2 per cent
7. Max Healthcare Institute: Up over 41%
8. Coforge: Up about 40 per cent
9. Innova Captab: Up roughly 39 per cent, though it’s a small holding
10. Glenmark Pharma: Up 35 per cent, with holdings more than doubled since last December
11. Dixon Technologies: Up around 34.4 per cent
12. Craftsman Automation: Up 33.1 per cent
13. Vishal Mega Mart: Over 30 per cent growth since April entry
14. HDFC AMC: Up over 30 per cent since entry in January
15. Apollo Hospitals: Up 25 per cent since the fund started buying the stock in February 2025

In short, Invesco India Mid Cap Fund managed to play offense and defense at the same time, absorbing losses on some high-conviction bets while letting its star performers run.

What you should know

Invesco India’s mid-cap scheme has turned heads in the last 12 months with an impressive run. But remember that one swallow doesn’t make a summer. A good short-term streak in a mid-cap fund is encouraging, but it’s not a verdict.

Because mid-cap investing isn’t meant for quick wins or short holding periods. By design, this category is inherently volatile. These funds invest in companies that are more established than small caps, but they’re still far from the stability of large caps. Earnings can swing sharply, share prices can gyrate wildly and even the best-managed mid-cap portfolio can go through uncomfortable drawdowns.

That’s why we’ve always maintained that if you’re getting into mid-caps, you must be willing to stay invested for at least seven to 10 years. That’s the time horizon where short-term noise fades, the real growth stories mature and the compounding magic truly kicks in.

So, when we shifted focus from the recent rally to the long game, we found that this fund still stands out. Over the last decade, it has delivered a stellar 19.41 per cent annualised return, the best in class. In fact, our own rating system awards it a solid four stars. Clearly, this isn’t a one-hit wonder.

But here’s where it gets interesting. Even with strong long-term performance and recent outperformance, past performance alone can’t seal the deal. Market conditions evolve, company fundamentals change and what worked in the last 10 years might not be the same formula for the next 10.

That’s why we always urge investors to go beyond the return chart. At Value Research Fund Advisor, our analysts dig deep — evaluating portfolio quality, valuation comfort, consistency of performance and how well the fund manager navigates through tough phases. These are the factors that really determine whether a fund deserves a spot in your portfolio today.

So, is this Invesco mid-cap fund among our current recommendations? That’s something you’ll find in our Analyst’s Choice section inside Fund Advisor. Think of it as your shortcut to well-researched, conviction-backed picks, so you don’t end up choosing a fund based solely on a good year or a flashy ranking.