Bandhan Midcap Fund Delivers Over 20% Annual Returns for 3 Consecutive Years, Outperforming Market Averages
Investors looking for consistent wealth creation have found a star performer in the Bandhan Midcap Fund. Over the past three years, this mutual fund scheme has generated annualized returns of 20.41%, far outpacing the benchmark and making it one of the most rewarding options in the midcap category.
For context, a yearly return above 12% is typically considered strong for equity mutual funds. Bandhan Midcap Fund’s ability to deliver over 20% consistently has caught the attention of retail investors and financial experts alike.
₹10,000 Turned Into ₹17,300 in Just Three Years
According to Bandhan Mutual Fund, an investor who put ₹10,000 in the scheme’s New Fund Offer (NFO) three years ago would have seen their investment grow to ₹17,307 today. This impressive growth highlights the fund’s focus on companies with strong business models, higher growth potential, and relatively lower risk exposure.
The scheme also emphasizes diversification, which has helped reduce volatility during market swings. Fund managers have made it clear that their strategy revolves around identifying businesses with visible growth prospects while carefully managing downside risks.
Focus on Emerging Themes
The Bandhan Midcap Fund’s portfolio strategy revolves around structural growth themes such as electronic manufacturing, fintech, power shortage solutions, and hospitality.
As of July 2025, the fund had a higher allocation towards capital goods, consumer services, and healthcare companies. On the other hand, it kept limited exposure to sectors like financial services, oil & gas, and metals & mining.
One unique aspect of this scheme is its preference for investing in companies with a market capitalization between ₹31,000 crore and ₹91,000 crore, positioning it strongly within the midcap space.
SIP Investors Benefited the Most
While lump-sum investors enjoyed strong returns, the fund noted that Systematic Investment Plan (SIP) investors gained even more. In the past year, SIP-based returns were seven percentage points higher compared to lump-sum investments.
Another attractive feature of this scheme is its low entry barrier. Investors can start with as little as ₹100 per month via SIP, making it accessible to small and first-time investors.
Currently, the fund manages an Asset Under Management (AUM) exceeding ₹1,800 crore, with nearly 70% of its investments in midcap stocks. This allocation has enabled the scheme to ride the strong performance of India’s midcap segment effectively.
Why the Fund Performed Well
Analysts attribute the success of Bandhan Midcap Fund to three main factors:
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Theme-based investment approach – focusing on sectors with long-term growth drivers.
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Balanced diversification – spreading risk across multiple industries.
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Prudent stock selection – prioritizing companies with sustainable business models.
These factors have allowed the fund to deliver higher-than-average returns while keeping volatility manageable.
Should You Invest?
While past performance is encouraging, experts caution that mutual fund investments should not be based solely on historical returns. Investors should evaluate their risk appetite, investment horizon, and financial goals before committing to such schemes.
Midcap funds, by nature, carry higher risk than large-cap funds, but they also offer better long-term growth opportunities. Therefore, financial advisors recommend them for investors who are comfortable with short-term market fluctuations and have a medium-to-long-term investment outlook.
Key Takeaway
The Bandhan Midcap Fund has proven its mettle by delivering 20%+ annualized returns over three years, transforming small investments into substantial wealth. Its sector focus, diversification strategy, and investor-friendly SIP options make it an attractive choice for those seeking growth in the midcap segment.
However, as with any equity investment, caution and proper guidance are essential. Investors are advised to consult their financial advisor before making decisions.
