Over the past decade, midcap mutual funds have delivered excellent returns to investors who have consistently invested in SIPs. Consistent investors have seen their money grow exponentially over the long term, despite the market’s downturns and recoveries.
This is the biggest strength of SIPs (Systematic Investment Plans). You do not have to worry about market timing and just need to keep investing. A consistent SIP for 10 years in midcap funds has not only made money for investors but also given them the confidence to withstand market volatility.
Midcap funds demonstrate long-term strength
According to data from Value Research, 67 midcap funds (both active and passive) have generated an average annual return of 15.94% over the past 10 years — higher than major equity categories like large cap, flexi cap, and ELSS. Only the smallcap category has slightly outperformed midcap funds, with an annual return of 16.59%.
This again proves that if you have invested for the long term, midcap funds can assure you strong returns and better growth.
According to AMFI, there are currently 31 active midcap funds, of which 20 (direct plans) have a track record of 10 years or more. From these 20, we have selected the top 5 performing funds based on 10-year SIP returns.
These funds have delivered SIP returns of 21.50% to 23.45% CAGR over the last 10 years, taking a monthly SIP of Rs 10,000 to approximately Rs 37–42 lakh.
Top 5 midcap funds by 10-year SIP returns
10-year SIP return – 23.45% CAGR
It has turned Rs 10,000 monthly SIP to Rs 41.71 lakh
Lump sum investment return (10 years) – 18.96% CAGR
10-year SIP return – 23.17% CAGR
It has turned Rs 10,000 monthly SIP to Rs 41.10 lakh
Lump sum investment return – 20.11% CAGR
10-year SIP return – 22.79% CAGR
It has turned Rs 10,000 monthly SIP to Rs 40 lakh
Lump sum investment return – 19.39% CAGR
10-year SIP return – 22.08% CAGR
It has turned Rs 10,000 monthly SIP to Rs 38.66 lakh
Lump sum investment return – 18.74% CAGR
10-year SIP return – 21.50% CAGR
It has turned Rs 10,000 monthly SIP to Rs 37.51 lakh
Lump sum investment return – 18.81% CAGR
(Data: AMFI, Value Research)
What’s the takeaway for investors
Midcap funds generally perform better over the long term, but their value can fluctuate in the short term. These funds are best suited for investors with an investment horizon of 5–7 years or more.
SIPs help average out market volatility and demonstrate the power of consistency.
Summing up…
If your investment horizon is long-term and you can tolerate some market volatility, mid-cap SIPs can prove to be real wealth creators for you. But remember — past returns do not guarantee future performance.
Still, the right mid-cap fund, chosen with discipline and patience, can help you achieve your financial goals faster.