Only 4 mid-cap funds cross17% in 3-year SIP returns; HSBC Midcap led at 20.70% while HDFC and Kotak lagged

Mid-cap funds have delivered mixed returns for SIP investors over the past three years. Only four funds in the list provided by Value Research delivered more than 17% annualised returns, while several large funds by assets delivered lower returns.

HSBC Midcap Fund topped the list with a 20.70% three-year SIP return. Invesco India Mid Cap Fund, WhiteOak Capital Mid Cap Fund and ICICI Prudential Mid Cap Fund were the other three funds to cross the 17% mark.

HSBC Midcap leads the category with 20.70% SIP return

HSBC Midcap Fund delivered the highest three-year SIP return among the mid-cap funds in the data, at 20.70%. Invesco India Mid Cap Fund followed with 18.82%, while WhiteOak Capital Mid Cap Fund delivered 18.39%. ICICI Prudential Mid Cap Fund was the fourth fund to cross the 17% mark, with a return of 17.16%.

The gap between the top four and the next set of funds was significant. Bandhan Mid Cap Fund delivered 14.82%, followed by Edelweiss Mid Cap Fund at 14.58% and JM Mid Cap Fund at 14.53%.

Union Midcap Fund and Mirae Asset Midcap Fund delivered 14.29% and 14.06%, respectively. Kotak Mid Cap Fund returned 13.67%, while ITI Mid Cap Fund delivered 13.54%.

Several other funds were below the 13% mark. Canara Robeco Mid Cap Fund delivered 13.23%, Mahindra Manulife Mid Cap Fund 13.17% and Sundaram Mid Cap Fund 12.86%. Axis Midcap Fund returned 12.71%, while Nippon India Growth Mid Cap Fund delivered 12.67%.

At the lower end, Quant Mid Cap Fund recorded a three-year SIP return of 4.48%, the lowest in the data. SBI Midcap Fund delivered 7.04%, while PGIM India Midcap Fund returned 8.34%.

Largest mid-cap funds fail to match the top performers

The largest mid-cap funds by assets did not necessarily deliver the highest three-year SIP returns. Value Research data shows that HDFC Mid Cap Fund was the largest fund in the list, with net assets of ₹1,05,143 crore. Its three-year SIP return was 12.45%.

Kotak Mid Cap Fund, the second-largest fund in the category with ₹69,283 crore in net assets, delivered a three-year SIP return of 13.67%. Nippon India Growth Mid Cap Fund, with ₹50,751 crore in assets, returned 12.67%.

Motilal Oswal Midcap Fund had ₹40,036 crore in net assets but delivered 11.02%. Axis Midcap Fund, with ₹34,404 crore, returned 12.71%, while SBI Midcap Fund delivered 7.04% despite having ₹24,354 crore in assets.

The data shows that a fund’s size does not necessarily translate into higher recent returns. Investors should therefore avoid choosing a mid-cap fund solely on the basis of AUM or short-term performance. Investment strategy, portfolio construction, risk and performance consistency across market cycles also matter.