In the midcap mutual fund category, the Motilal Oswal Midcap Fund has performed remarkably well in the long term. This fund has topped the five-year return chart in the midcap space. It has remained a consistent performer in 3 years and 10 years too.
If we talk about SIP returns, the fund has given the best returns in the category in 5 and 10 years. At the same time, on the 3-year return chart, this fund is at number two, where Invesco India Mid Cap Fund is at the first position.
Motilal Oswal Midcap Fund – Direct Plan is an open-ended equity scheme launched on February 24, 2014. The fund has delivered a return of 24.07% CAGR since its launch. It benchmarks NIFTY Midcap 150 TRI. The fund size is Rs 33,609 crore (as on July 31, 2025) and has an expense ratio of 0.70%. It is placed in the “Very High Risk” category.
Motilal Oswal Midcap Fund’s 3, 5 and 10-year performance
3 years: 29.66% CAGR (Benchmark – 22.93%)
5 years: 34.82% CAGR (Benchmark – 27.96%)
10 years: 18.50% CAGR (Benchmark – 17.52%)
This performance has made the fund a reliable wealth creator in the long term.
Motilal Oswal Midcap Fund’s SIP returns
3 years: 28.58% CAGR (Rs 10,000/month investment now Rs 5.45 lakh)
5 years: 30.57% CAGR (Rs 10,000/month investment now Rs 13 lakh)
10 years: 23.75% CAGR (Rs 10,000/month investment now Rs 42 lakh)
Motilal Oswal Midcap Fund – risk and volatility
The fund is placed in the “Very High Risk” category. That is, there is more volatility in it. The standard deviation of the fund is 17.46%, which shows volatility. But the Sharpe Ratio (1.28) and Sortino Ratio (1.51) give good indications that investors got better returns by taking risk. The beta is 0.89, that is, it is slightly less volatile than the market. At the same time, positive alpha of 7.28 indicates that the fund manager generated higher returns than the benchmark.
Motilal Oswal Midcap Fund portfolio
The fund has invested in many mid-sized companies. These include Dixon Technologies (10.52%), Coforge (9.36%), Kalyan Jewellers (8.86%), Persistent Systems (8.29%), Trent (7.84%), Polycab India (5.58%), One97 Communications/Paytm (4.50%) and KEI Industries (4%). Most of these companies come from consumer, technology and industrial sectors.
Summing up…
Although Motilal Oswal Midcap Fund has given excellent returns in the last 3, 5 and 10 years, investors should not take decisions just by looking at the returns. Risk in mutual funds, fund portfolio, expenses (expense ratio) and investment period should also be kept in mind. Also, it is important to understand that past returns are not guaranteed to remain the same in the future.