Mid-cap mutual funds have emerged as powerful wealth-building tools for investors who stay disciplined over the long term.
Despite higher short-term volatility, many mid-cap schemes have delivered over 20% annualised returns through systematic investment plans (SIPs) over the past 10 years.
This shows the power of consistent investing and rupee cost averaging, which helps investors benefit from market ups and downs.
Top 5 Mid-Cap Mutual Funds Over 10 Years
Based on 10-year SIP performance, here are the top five mid-cap funds in terms of returns, consistency, and wealth creation:
| Fund Name | 10-Year SIP XIRR | 10-Year Lump Sum CAGR |
|---|---|---|
| Edelweiss Mid Cap Fund | 21.42% | 20.29% |
| Invesco India Mid Cap Fund | 20.75% | 19.84% |
| HDFC Mid Cap Opportunities Fund | 20.51% | 19.73% |
| Nippon India Growth Mid Cap Fund | 20.46% | 19.43% |
| Motilal Oswal Midcap Fund | 20.28% | 18.54% |
How Much Wealth Can a Rs 10,000 Monthly SIP Create?
A disciplined SIP of Rs 10,000 per month (total investment of ₹12 lakh over 10 years) could have grown significantly in these mid-cap funds:
Edelweiss Mid Cap Fund: ₹37.05 lakh
Invesco India Midcap Fund: ₹35.73 lakh
HDFC Mid Cap Opportunities Fund: ₹35.27 lakh
Nippon India Growth Mid Cap Fund: ₹35.18 lakh
Motilal Oswal Midcap Fund: ₹34.84 lakh
Even a lump sum investment of Rs 1 lakh over 10 years nearly tripled in value, demonstrating the wealth-creation potential of mid-cap funds:
Edelweiss Mid Cap Fund: ₹3.09 lakh
Invesco India Mid Cap Fund: ₹2.98 lakh
HDFC Mid Cap Fund: ₹2.94 lakh
Nippon India Growth Mid Cap Fund: ₹2.93 lakh
Motilal Oswal Midcap Fund: ₹2.90 lakh
High Returns Come With High Volatility
While mid-cap funds have delivered strong long-term returns, they are high-risk investments.
Investors should be prepared for sharp short-term corrections, especially during market downturns.
Some funds, like HDFC Mid Cap Opportunities, have shown relatively lower volatility, while funds like Motilal Oswal Midcap can swing more dramatically due to high-conviction strategies.
Key Takeaways for Investors
Long-term horizon: Mid-cap funds are suitable for 7–10 years or more.
High risk appetite: Investors must be prepared for market ups and downs.
SIP investing helps: Systematic investing reduces timing risk but does not eliminate volatility.
Diversification is important: Spread investments across fund categories to manage risk.
Past performance is not a guarantee: Future returns may vary depending on market conditions, economic cycles, and fund strategies.
Mid-cap funds can create significant wealth over the long term, but careful planning, patience, and a strong risk appetite are essential.
