₹5,000 SIP test: Which of these mid-cap mutual funds created the most wealth over 10 years?

Due to their potential for long-term growth, mid-cap mutual funds continue to draw interest from investors, despite recent performance showing the disparity in returns among fund houses.

A study of the top midcap schemes reveals different results in terms of SIP performance, portfolio positioning, and returns.

To determine which of the five chosen mid-cap mutual fund schemes produced the maximum wealth for investors contributing ₹5,000 per month, this article looks at the 10-year SIP performance of these funds.

Instead of focusing on the larger mid-cap fund universe, the comparison is based on past returns and aims to show performance trends within this small group of funds.

Before reading further, please note that this is just for informational purposes. It is not intended to recommend any of these schemes for investment.

ICICI Prudential Midcap Fund (Growth)

The fund’s top holdings include Muthoot Finance, Jindal Steel, Multi Commodity Exchange, UPL and APL Apollo Tubes.

On the performance front, the scheme delivered 12.40% returns over one year and 23.01% CAGR over three years. Since its inception, the fund has generated an annualised return of 17.63%.

A monthly SIP of ₹5,000 over 10 years would have grown to ₹15.71 lakh, compared with ₹17.06 lakh for the benchmark.

Kotak Midcap Fund (Regular – Growth)

The portfolio is diversified across companies such as GE Vernova T&D India, Fortis Healthcare, Mphasis and Ipca Laboratories.

The fund posted 2.96% returns over one year, while delivering 21.38% over three years and 21.16% over five years. Since its inception, the scheme has generated 14.92% annualised returns.

A 10-year SIP investment of ₹6 lakh grew to ₹16.51 lakh, marginally below the benchmark return.

HDFC Mid Cap Fund (Regular – Growth)

Key holdings include Max Financial, AU Small Finance Bank, Federal Bank and Balkrishna Industries. The scheme has outperformed the benchmark across multiple periods, delivering 8.45% returns over one year, 25.41% over three years, and 24.29% over five years. Since inception, returns stand at 17.60%.

A ₹5,000 monthly SIP over 10 years would have grown to ₹17.35 lakh, exceeding the benchmark value.

SIP Performance (₹5,000 per month)

Quant Mid Cap Fund (Growth)

The fund has a higher concentration in stocks such as Tata Communications, Aurobindo Pharma, IRB Infrastructure and Premier Energies. Recent performance has been volatile, with -7.70% returns over one year and 13.66% over three years. Since its inception, the fund has delivered 12.87% annualised returns.

A 10-year SIP investment of ₹6 lakh grew to ₹15.71 lakh, lower than the benchmark outcome.

Invesco India Midcap Fund (Regular – Growth)

Top portfolio holdings include Federal Bank, AU Small Finance Bank, L&T Finance, Swiggy and BSE. The fund has delivered strong relative performance with 26.67% returns over three years and 22.54% over five years. Since inception, returns stand at 16.74%.

A ₹5,000 monthly SIP over 10 years would have grown to ₹17.47 lakh, significantly outperforming its benchmark.

Key takeaways

• Returns across leading midcap schemes vary significantly, especially over the short term, highlighting the importance of fund selection.

• HDFC Mid Cap Fund emerges as the most consistent performer, outperforming the benchmark across 1, 3, 5 and 10-year SIP periods, supported by strong stock selection.

• Invesco India Midcap Fund stands out on long-term SIP returns, with a ₹5,000 monthly SIP over 10 years growing to ₹17.47 lakh, the highest among peers and well ahead of its benchmark.

• ICICI Prudential Midcap Fund delivers steady long-term returns, but its 10-year SIP performance trails the benchmark.

• Kotak Midcap Fund shows stability, with returns largely in line with the benchmark and marginal underperformance over longer periods.

• Quant Mid Cap Fund has faced recent volatility, underperforming peers and the benchmark over 1- and 3-year periods despite strong long-term market exposure.

• Large AUM does not guarantee outperformance. Despite being the largest fund, HDFC Mid Cap Fund’s success stems from consistency rather than size alone, while some smaller funds struggled.

• Long-term SIP investing remains effective, as all funds delivered substantial wealth creation over 10 years despite interim volatility.

Although past performance is frequently the first factor that investors consider when selecting a mutual fund, it shouldn't be the only or main consideration. This is due to the fact that past performance does not ensure future outcomes.

Mutual funds' long-term performance is influenced by a number of factors, including market circumstances, interest rates, economic cycles, and the fund manager's strategy. It is not a given that a fund that has previously outperformed would continue to do so, and vice versa.