Mid Cap Mutual Fund is a sub-category of equity mutual funds that is known for its high returns potential. However, they also tend to be riskier due to the higher volatility and downside risk associated with smaller stocks. Accordingly, the Systematic Investment Plan (SIP) is preferable when it comes to investments in Mid Cap Mutual Funds as it can help mitigate the risk.
In the last 10 years, four Mid Cap Mutual Funds generated SIP returns of 20% or more, thus turning out to be top-performing schemes in the category. The top-performing SIP generated XIRR of 21.2% during this period.
[Read: 5 Best Mid Cap Mutual Funds to Invest in 2023 – Top Performing Mid Cap Mutual Funds in India]
What are Mid Cap Mutual Funds?
Mid Cap Mutual Funds are equity-oriented mutual funds that are mandated to invest a minimum of 65% of their total assets in equity and equity-related instruments of mid-cap companies (companies ranking from 101st to 250th in terms of full market capitalisation).
Mid Cap Mutual Funds are high risk – high return investment avenues. These funds have the potential to deliver superior returns because mid-sized companies are usually in their growth phase. Notably, mid-cap companies have better access to capital and various resources when compared to small-caps but fewer opportunities as compared to large-caps. Their management team is also stronger than that of small-caps, and they adapt to new trends with better ease. They hold the potential to become the large-caps of tomorrow.
Mid Cap Mutual Fund category average SIP returns over different time frames
Past performance is not an indicator of future returns.
Data as of August 01, 2023
Returns are XIRR in percentage
Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
What is an SIP?
The SIP mode allows mutual fund investors to invest a certain fixed sum regularly over the long term in the scheme/s of their choice, which helps develop a financial discipline – the key to successful investing. It also enables averaging of investment costs as more units are added when the equity markets are trading low and fewer units when the markets are scaling up. This feature enhances the power of compounding, allowing the investors’ wealth to grow leaps and bounds over the long term. The tool used to calculate SIP returns is known as XIRR (Extended Internal Rate of Return).
[Read: 5 Key Benefits of Investing in Mutual Funds via SIP]
[Read: What is XIRR in Mutual Funds? And How to Calculate it?]https://www.youtube.com/embed/iWhtt1dinrs
In this article, we will look at the top-performing Mid Cap Mutual Funds based on 10-year SIP returns.
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #1: Quant Mid Cap Fund
Launched in February 2001, Quant Mid Cap Fund currently has an AUM of Rs 2,531 crore. In the last 10 years, Quant Mid Cap Fund grew at an XIRR of 21.2%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,66,435. The fund’s top stock holdings include Tata Communications, Reliance Industries, Punjab National Bank, Aurobindo Pharma, and Linde India.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Quant Mid Cap Fund | 1,20,000 | 3,66,435 | 21.16 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #2: Kotak Emerging Equity Fund
Launched in March 2007, Kotak Emerging Equity Fund currently has an AUM of Rs 29,756 crore. In the last 10 years, Kotak Emerging Equity Fund grew at an XIRR of 20.8%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,60,107. The fund’s stock holdings include Supreme Industries, Cummins India, Schaeffler India, Persistent Systems, and SKF India.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Kotak Emerging Equity Fund | 1,20,000 | 3,60,197 | 20.84 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #3: Edelweiss Mid Cap Fund
Launched in December 2007, Edelweiss Mid Cap Fund currently has an AUM of Rs 3,250 crore. In the last 10 years, Edelweiss Mid Cap Fund grew at an XIRR of 20.2%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,48,707. The fund’s stock holdings include Cummins India, Persistent Systems, The Federal Bank, Indian Bank, and Trent.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Edelweiss Mid Cap Fund | 1,20,000 | 3,48,707 | 20.24 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #4: HDFC Mid-Cap Opportunities Fund
Launched in June 2007, HDFC Mid-Cap Opportunities Fund currently has an AUM of Rs 42,732 crore, making it the largest scheme in the Mid Cap Mutual Fund category. In the last 10 years, HDFC Mid-Cap Opportunities Fund grew at an XIRR of 20.2%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,48,145. The fund’s stock holdings include The Indian Hotels Company, Cholamandalam Investment & Finance Co., Max Healthcare Institute, Tata Communications, and Apollo Tyres.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| HDFC Mid-Cap Opportunities Fund | 1,20,000 | 3,48,145 | 20.21 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #5: Invesco India Midcap Fund
Launched in April 2007, Invesco India Midcap Fund currently has an AUM of Rs 3,150 crore. In the last 10 years, Invesco Fund grew at an XIRR of 19.5%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,34,561. The fund’s stock holdings include Sundram Fasteners, Max Healthcare Institute, Trent, The Indian Hotels Company, and Abbott India.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Invesco India Midcap Fund | 1,20,000 | 3,34,561 | 19.47 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #6: Nippon India Growth Fund
Launched in October 1995, Nippon India Growth Fund is one of the oldest schemes in the Mid Cap Mutual Fund category and currently has a large-sized AUM of Rs 16,353 crore. In the last 10 years, Nippon India Growth Fund grew at an XIRR of 19.3%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,31,707. The fund’s stock holdings include Cholamandalam Financial Holdings, AU Small Finance Bank, Power Finance Corporation, Varun Beverages, and Mahindra & Mahindra Financial Services.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Nippon India Growth Fund | 1,20,000 | 3,31,707 | 19.31 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Mid Cap Mutual Fund on 10-Year SIP Returns #7: SBI Magnum Midcap Fund
Launched in March 2005, SBI Magnum Midcap Fund currently has an AUM of Rs 11,132 crore. In the last 10 years, SBI Magnum Midcap Fund grew at an XIRR of 19.2%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,30,322. The fund’s stock holdings include CRISIL, Schaeffler India, Tube Investments of India, Carborundum Universal, and Page Industries.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| SBI Magnum Midcap Fund | 1,20,000 | 3,30,322 | 19.24 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of August 01, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Do note that Mid Cap Mutual Funds carry high risk and is therefore only suitable for aggressive investors who have the appetite to handle market volatility and have a long-term investment horizon of at least 5-7 years. When selecting Mid Cap Mutual Funds for the portfolio, avoid getting swayed by the recent performance and instead focus on schemes that select fundamentally sound, quality stocks for the portfolio.
Related links:
Market at All-time High: Is This a Good Time to Invest in Mid Cap and Small Cap Mutual Funds?]
The Investment Strategy Mutual Fund Investors May Follow as Sensex, Nifty Touch Record Highs
Should You Kick-start Your SIPs Amid Market Highs? Find Out Now
Note: This write-up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.
This article first appeared on PersonalFN here
