Over the past five years, midcap mutual funds have delivered robust returns to investors, emerging as a strong middle ground between the stability of large-cap funds and the aggressive growth of small-cap schemes.
During this period, Motilal Oswal Midcap Fund, HDFC Mid Cap Fund, and Nippon India Growth Mid Cap Fund have stood out as top performers. Not only have these funds generated significant gains, but they have also outpaced their respective benchmarks and category averages, reinforcing the appeal of midcap investments for long-term wealth creation.
In Motilal Oswal Midcap Fund, an investment of ₹1 lakh five years ago has now reached approximately ₹3.01 lakh. With a monthly SIP of ₹10,000 during the same period, the total investment value has become approximately ₹9.88 lakh. This fund's SIP CAGR is approximately 20.04%.
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Here are the mid-cap funds
In the HDFC Mid Cap Fund, an investment of ₹1 lakh five years ago has grown to approximately ₹2.91 lakh. With a monthly SIP of ₹10,000, the total value has become approximately ₹10.38 lakh. This fund's SIP CAGR is approximately 22.40%, which is the highest in this list.
In the Nippon India Growth Mid Cap Fund, an investment of ₹1 lakh five years ago has now become approximately ₹2.88 lakh. For the same SIP investment, the total value has become approximately ₹10.28 lakh. This fund's SIP CAGR is approximately 21.97%.
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What are mid-cap funds?
According to experts, midcap companies are generally in a high-growth phase. These companies are more stable compared to smallcaps and can grow faster compared to largecaps. Strong earnings growth, balance sheet improvements and the country's economic recovery over the past few years have supported midcap fund performance.
However, investment decisions should not be made based solely on past returns. Investors need to consider their risk-taking capacity, portfolio composition and long-term investment goals. If one can continue investing patiently through market fluctuations, midcap funds can help create wealth in the long term.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
