3 Mid Cap Funds That Turned Rs 10,000 SIP Into Rs 35 Lakhs in 10 Years 

Hello everyone

I am Divya Grover, here to help you take informed mutual fund investment decisions.

If you are looking to build long-term wealth through mutual funds, mid cap mutual funds have been among the biggest wealth creators in the Indian equity market over the past decade.

These funds sit right between large cap and small cap mutual funds. They offer higher growth potential than large caps while generally carrying lower risk than small caps.

That said, mid cap funds can experience significant volatility during uncertain or bearish market conditions. One way to deal with these market fluctuations more effectively is by investing through a Systematic Investment Plan, or SIP.

With an SIP, you invest a fixed amount regularly. This reduces the need to time the market and allows you to benefit from the power of long-term compounding.

So, if you have an investment horizon of at least 5 to 7 years and you are comfortable with market swings, investing in mid cap funds through SIPs can potentially help create substantial wealth.

In this video, we'll look at three mid cap funds that turned a monthly SIP of Rs 10,000 into more than Rs 3.5 million over a period of 10 years.

Let's get started.

#1: Invesco India Midcap Fund

Launched in April 2007, the Invesco India Midcap Fund aims to identify companies with stable business models that are likely to perform well over the long run.

The fund currently has an AUM of Rs 138 billion.

Now here's the performance. A monthly SIP of Rs 10,000 for 10 years, which means a total investment of Rs 1.2 million, would have grown to Rs 3.8 million.

That works out to an XIRR of 21.9%.

Its top stock allocations are Prestige Estates Projects, The Federal Bank, BSE, AU Small Finance Bank, and Meesho.

#2: Edelweiss Mid Cap Fund

Launched in December 2007, the Edelweiss Mid Cap Fund follows a bottom-up approach to select companies with strong growth potential, without any style or sector bias.

It currently manages an AUM of Rs 178 billion.

A monthly SIP of Rs 10,000 over 10 years, with a total investment of Rs 1.2 million, would have grown to Rs 3.7 million.

This translates into an XIRR of 21.3%.

Its top stock holdings include The Federal Bank, BSE, Fortis Healthcare, Marico, and Solar Industries India.

#3: Nippon India Growth Mid Cap Fund

Launched in October 1995, the Nippon India Growth Mid Cap Fund follows a 'Growth at Reasonable Price' strategy to select quality businesses that are available at reasonable valuations.

The fund currently has an AUM of Rs 491 billion, making it the second largest in the category.

A monthly SIP of Rs 10,000 over 10 years, with a total investment of Rs 1.2 million, would have grown to Rs 3.5 million.

That comes to an XIRR of 20.8%.

Its top stock exposure is in BSE, The Federal Bank, Fortis Healthcare, AU Small Finance Bank, and Bharat Forge.

Conclusion

Mid cap funds have the potential to deliver strong growth over the long run, even though they may experience high volatility and corrections in the near term.

That's why it's important to invest with a long-term horizon and be prepared to tolerate market fluctuations, as their impact tends to reduce when you stay invested over a longer period.

It's also a good idea to avoid going overboard with investments in mid cap funds. Instead, consider balancing them with relatively stable investments such as large cap funds and flexi cap funds.

And when choosing a mid cap fund for SIP investments, it's better to prefer funds that have demonstrated reasonable growth across different market phases while maintaining reasonable risk, rather than simply chasing the highest returns.

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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as RA and IA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.