Midcap mutual funds have been a hot favourite among Indian investors in recent years. According to ET Wealth, five midcap funds have delivered more than 21% compounded annual growth rate (CAGR) over the past three years, proving their strength in wealth creation.
At the top of the list is HSBC Midcap Fund, which posted an impressive 25.1% annualised return. Close behind is Invesco India Mid Cap Fund, with 24.5% CAGR, supported by a strong asset base of ₹14,721 crore. ICICI Prudential Midcap Fund also stood out, delivering 23.6% CAGR consistently.
Meanwhile, WhiteOak Capital Mid Cap Fund and Edelweiss Mid Cap Fund recorded 22.4% and 21.7% CAGR respectively. These funds have rewarded investors who stayed invested during market ups and downs, showcasing the resilience of midcap companies.
On the other hand, some midcap funds lagged behind, with returns between 11% and 13%, including Taurus Mid Cap, PGIM India Midcap, SBI Midcap, Quant Mid Cap, and UTI Mid Cap.
For investors, this performance underlines the importance of choosing the right fund manager and strategy. Midcap funds carry higher risk compared to large-cap funds, but they also offer higher growth potential. A disciplined SIP approach and long-term horizon can help investors benefit from these opportunities.
In short, midcap funds have proven to be powerful wealth creators for those willing to take calculated risks.