Invesco India Mid Cap, Quant Mid Cap Among 10 Midcap MFs Delivering Over 350% Absolute Returns in 10 Years

Midcap Mutual Funds Create Significant Wealth Over 10 Years

Midcap mutual funds have delivered strong long-term wealth creation over the past decade. According to an ETMarkets analysis based on ACE MF data, around 20 midcap mutual fund schemes with a complete 10-year track record turned into multibaggers.

The best-performing fund delivered an absolute return of 426%, while even the lowest-performing fund among the 20 schemes generated an absolute return of nearly 238%.

Among these schemes, 10 midcap mutual funds delivered absolute returns of at least 350% over the 10-year period.

Invesco India Midcap Fund Tops With 426% Return

Invesco India Midcap Fund emerged as the top performer in the 10-year analysis, delivering an absolute return of 426%.

This means an investment of Rs 1 lakh would have grown to approximately Rs 5.26 lakh over the period, before considering applicable taxes and other costs.

The fund's performance placed it ahead of Edelweiss Mid Cap Fund and Nippon India Growth Mid Cap Fund.

Edelweiss Mid Cap Fund Delivers 409%

Edelweiss Mid Cap Fund ranked second among the top-performing midcap schemes.

The fund generated an absolute return of 409% over 10 years. An investment of Rs 1 lakh would have become approximately Rs 5.09 lakh during the period.

The result places Edelweiss among the few midcap schemes to have crossed the 400% absolute-return milestone.

Nippon India Growth Mid Cap Fund Returns 403%

Nippon India Growth Mid Cap Fund was another fund to cross the 400% return mark.

It delivered an absolute return of 403% over the last 10 years. A Rs 1 lakh investment would have grown to approximately Rs 5.03 lakh.

The fund ranked third in the analysis.

Quant Mid Cap Fund Gives 375% Return

Quant Mid Cap Fund delivered an absolute return of 375% over the 10-year period.

A Rs 1 lakh investment would have grown to around Rs 4.75 lakh.

The scheme ranked among the top-performing midcap mutual funds despite its return being below the three funds that crossed the 400% mark.

HSBC Midcap Fund Delivers 373%

HSBC Midcap Fund generated an absolute return of 373% over 10 years.

A Rs 1 lakh investment would have grown to approximately Rs 4.73 lakh over the period.

The fund was marginally ahead of Kotak Mid Cap Fund and HDFC Mid Cap Fund in the ranking.

Kotak Mid Cap and HDFC Mid Cap Both Return 369%

Kotak Mid Cap Fund and HDFC Mid Cap Fund delivered identical absolute returns of 369% over the last 10 years.

In both cases, a Rs 1 lakh investment would have grown to approximately Rs 4.69 lakh.

Their performance placed both schemes among the leading midcap funds in the 10-year analysis.

Axis Midcap Fund Delivers 357%

Axis Midcap Fund generated an absolute return of 357% over the 10-year period.

A Rs 1 lakh investment would have grown to approximately Rs 4.57 lakh.

The fund was among the final schemes to cross the 350% return threshold in the analysis.

ICICI Prudential Mid Cap and Motilal Oswal Midcap Return 350%

ICICI Prudential Mid Cap Fund and Motilal Oswal Midcap Fund each delivered an absolute return of 350% over the last 10 years.

A Rs 1 lakh investment in either scheme would have grown to approximately Rs 4.50 lakh.

Both funds completed the list of schemes that reached the 350% or higher absolute-return level.

Full List of 10 Midcap Mutual Funds

RankMutual Fund10-Year Absolute ReturnRs 1 Lakh Becomes1Invesco India Midcap Fund426%Rs 5.26 lakh2Edelweiss Mid Cap Fund409%Rs 5.09 lakh3Nippon India Growth Mid Cap Fund403%Rs 5.03 lakh4Quant Mid Cap Fund375%Rs 4.75 lakh5HSBC Midcap Fund373%Rs 4.73 lakh6Kotak Mid Cap Fund369%Rs 4.69 lakh7HDFC Mid Cap Fund369%Rs 4.69 lakh8Axis Midcap Fund357%Rs 4.57 lakh9ICICI Prudential Mid Cap Fund350%Rs 4.50 lakh10Motilal Oswal Midcap Fund350%Rs 4.50 lakh

The figures are based on the 10-year performance analysis reported by ETMarkets using ACE MF data.

How Much Did the Midcap Category Return?

The broader midcap category also delivered strong returns during the period.

An analysis of 20 midcap schemes with a complete 10-year track record showed that the category average absolute return was around 324%. The lowest-performing scheme delivered nearly 238%, while the top performer generated 426%.

This means that long-term investors who remained invested through different market cycles benefited from substantial wealth creation.

Why Have Midcap Funds Performed So Well?

Midcap companies occupy an important position between large established businesses and smaller companies.

Over the past decade, several factors supported midcap earnings, including economic formalisation, capital expenditure, manufacturing growth, production-linked incentive-related sectors and improving capacity utilisation.

However, returns were not driven by earnings growth alone. Rising valuations also contributed to the strong performance of midcap stocks during parts of the period.

Strong Past Returns Do Not Guarantee Future Performance

While the 10-year numbers are impressive, investors should not assume that the same returns will continue.

Historical returns represent what happened in the past. Future performance will depend on earnings growth, valuations, economic conditions, interest rates, corporate profitability and the fund manager's portfolio decisions.

Midcap funds can also experience significant volatility during market corrections.

What Should Investors Check Before Investing?

Investors considering midcap mutual funds should look beyond 10-year returns.

Important factors include:

• Consistency of performance across market cycles

• Performance against the appropriate benchmark

• Risk-adjusted returns

• Portfolio diversification

• Expense ratio

• Fund manager's investment approach

• Portfolio valuation

• Concentration in individual stocks and sectors

• Investment time horizon

• Investor's ability to tolerate market volatility

A fund that has delivered exceptional historical returns may not necessarily be the best choice for every investor.

Should Investors Chase 350%+ Return Funds?

Not necessarily.

The 350%+ returns highlight the wealth-creation potential of midcap funds over a long period, but they should not be interpreted as a future-return forecast.

Investors should select a mutual fund based on their financial goals, risk profile and investment horizon rather than choosing a scheme solely because it appears near the top of a historical return ranking.

For investors with a long-term horizon and the ability to tolerate volatility, midcap funds can form part of a diversified equity allocation. However, portfolio allocation should be appropriate to the individual's overall financial situation.

Bottom Line

Ten midcap mutual funds delivered absolute returns of at least 350% over the last 10 years, according to the ETMarkets analysis based on ACE MF data.

Invesco India Midcap Fund topped the list with a 426% return, followed by Edelweiss Mid Cap Fund at 409% and Nippon India Growth Mid Cap Fund at 403%. Quant Mid Cap Fund delivered 375%, while HSBC Midcap Fund returned 373%. Kotak Mid Cap Fund and HDFC Mid Cap Fund each delivered 369%.

Axis Midcap Fund generated 357%, while ICICI Prudential Mid Cap Fund and Motilal Oswal Midcap Fund each delivered 350%.

The performance demonstrates the long-term wealth-creation potential of midcap mutual funds. However, investors should remember that past performance is not a guarantee of future returns and should evaluate risk, valuation, portfolio quality and investment objectives before investing.