Mid-cap mutual funds have proven to be strong wealth creators for investors who stay invested for the long term, especially through Systematic Investment Plans (SIPs).
Although mid-cap funds can be volatile, several schemes have delivered over 20% annualized returns on SIPs over the last 10 years.
This shows how disciplined investing can create significant wealth, even during market ups and downs.
Top 5 Mid-Cap Funds Based on 10-Year SIP Performance
Here are the top-performing mid-cap funds based on a 10-year SIP of Rs 10,000 per month (total SIP investment: ₹12 lakh):
| Fund Name | 10-Year SIP Returns (XIRR) | 10-Year Lump Sum Returns (CAGR) |
|---|---|---|
| Edelweiss Mid Cap Fund | 21.42% | 20.29% |
| Invesco India Mid Cap Fund | 20.75% | 19.84% |
| HDFC Mid Cap Opportunities Fund | 20.51% | 19.73% |
| Nippon India Growth Mid Cap Fund | 20.46% | 19.43% |
| Motilal Oswal Midcap Fund | 20.28% | 18.54% |
What this means in real terms:
Edelweiss Mid Cap Fund: Rs 10,000/month SIP → ₹37.05 lakh in 10 years
Invesco India Midcap Fund: ₹35.73 lakh
HDFC Mid Cap Fund: ₹35.27 lakh
Nippon India Growth Mid Cap Fund: ₹35.18 lakh
Motilal Oswal Midcap Fund: ₹34.84 lakh
Even a one-time investment of Rs 1 lakh nearly tripled over 10 years in most funds.
High Returns Come With High Risk
It’s important to note that mid-cap funds are high-risk investments.
While the long-term returns are attractive, these funds can face sharp short-term corrections, especially during market downturns.
Some funds, like HDFC Mid Cap Opportunities Fund, offer relatively lower volatility and better risk-adjusted returns.
Others, like Motilal Oswal Midcap Fund, follow high-conviction strategies that can result in larger swings in performance.
Investors should be prepared for periods of underperformance.
Key Takeaways for Investors
Long-term horizon: Mid-cap funds are best for investors with 7–10 years or more of investment time.
High risk appetite: Be ready for short-term market fluctuations.
SIP advantage: Regular investing reduces timing risk, though it doesn’t eliminate volatility.
Diversification: Don’t invest all your money in mid-cap funds—balance your portfolio with other asset classes.
Past performance is not a guarantee: Returns may vary in the next decade due to changing market conditions.