Mutual Fund Marvel! These 20 Schemes Made Investors Wealthy..
20 Midcap Mutual Funds: 20 Multibaggers. Over the past decade, among funds with a full 10-year track record, even the worst-performing scheme delivered an absolute return of approximately 238%, while the best scheme saw a gain of 426%. The category average stands at 324%, meaning every ₹1 lakh invested grew to over ₹4 lakh on average, establishing midcaps as one of the most reliable wealth-creating sectors in the equity market.
‘Invesco India Midcap Fund’ tops the list with a 426% return, followed by ‘Edelweiss Midcap Fund’ (409%) and ‘Nippon India Growth Midcap Fund’ (403%). Nine out of the 20 schemes delivered returns exceeding 350%, while 11 returned more than 300%. On the other hand, the worst performer in the 10-year group, ‘Aditya Birla Sun Life Midcap Fund’, still posted a gain of 238%.
‘SBI Midcap Fund’ delivered a return of 247%, ‘UTI Mid Cap Fund’ 250%, and ‘DSP Midcap Fund’ 255%. An absolute return of 238% over 10 years equates to an annualized return of approximately 13%, while a 426% return translates to roughly 18%. The category average of 324% corresponds to an annualized return of about 15.5%. While this difference might not seem significant on an annual basis, it results in a substantial disparity in final wealth over a decade: an investment of ₹1 lakh would have grown to approximately ₹3.38 lakh in the worst-performing scheme, compared to ₹5.26 lakh in the best-performing one. This disparity raises a significant question: what factor made this category so robust that even the worst-performing scheme within it more than tripled investors' money? In an ET report, Hemant Sood, Founder and Managing Director of Findoc Group, attributes this performance of the mid-cap category to three key reasons: earnings growth, valuation re-rating, and sustained investor investment.
20 Mid-cap Funds Became Multibaggers Over the Last 10 Years
Mid-cap Fund | 10-Year Return | Value of ₹1 Lakh Investment (in Rupees)
Invesco India Midcap Fund | 426% | 5.26 Lakh
Edelweiss Mid Cap Fund | 409% | 5.09 Lakh
Nippon India Growth Mid Cap Fund | 403% | 5.03 Lakh
Quant Mid Cap Fund | 375% | 4.75 Lakh
HSBC Midcap Fund | 373% | 4.73 Lakh
Kotak Mid Cap Fund | 369% | 4.69 Lakh
HDFC Mid Cap Fund | 369% | 4.69 Lakh
Axis Midcap Fund | 357% | 4.57 Lakh
ICICI Prudential Mid Cap Fund | 350% | 4.50 Lakh
Motilal Oswal Midcap Fund | 350% | 4.50 Lakh
Tata Mid Cap Fund | 321% | 4.21 Lakh
PGIM India Midcap Fund | 296% | 3.96 Lakh
Baroda BNP Paribas Mid Cap Fund | 295% | 3.95 Lakh
Taurus Mid Cap Fund | 271% | 3.71 Lakh
Sundaram Mid Cap Fund | 270% | 3.70 Lakh
Franklin India Mid Cap Fund | 259% | 3.59 Lakh
DSP Midcap Fund | 255% | 3.55 Lakh
UTI Mid Cap Fund | 250% | 3.50 Lakh
SBI Midcap Fund | 247% | 3.47 Lakh
Aditya Birla Sun Life Midcap Fund | 238% | 3.38 Lakh
Why and How the Gains Were Achieved
Mid-caps occupy a highly lucrative segment of India's corporate lifecycle. Many companies in this segment have already reached a stage where their businesses are more robust than those of smaller firms, yet they retain significant growth potential compared to large, established companies (large-caps). Sood noted that over the past decade, this segment benefited from operating leverage driven by the formalization of the economy, capex and manufacturing cycles, sectors covered by Production-Linked Incentive (PLI) schemes, and improved capacity utilization. However, earnings were only one aspect; rising valuations also boosted returns, meaning investors became willing to pay more for every rupee of earnings generated by mid-cap companies.
**Other Contributing Factors**
Souvik Biswas, Head of Research at Bajaj Capital, also highlights similar structural advantages. Mid-cap companies have already attained substantial scale and continue to expand, helping the segment build strong earnings momentum. Additionally, the periodic entry of rapidly growing companies from the small-cap category constantly creates new opportunities.
This combination attracts investors employing diverse strategies—ranging from growth and quality to momentum, value, and contrarian approaches—thereby sustaining liquidity and investor interest. Biswas stated that the segment holds the potential for significant returns, driven primarily by earnings growth alongside accompanying liquidity and investor interest.
Manish Kothari, Co-founder and CEO of ZFunds, noted in an ET report that mid-caps essentially offer investors the "best of both worlds"—combining the operational strength of large companies with the rapid growth potential of smaller ones. The segment is expanding through both earnings growth and valuation re-ratings, while the continuous entry of new companies into the mid-cap category creates further investment opportunities.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
