Top Midcap Mutual Funds Deliver Over 22% Returns: SIP of ₹10,000 Grows to Nearly ₹40 Lakh in 10 Years

Midcap mutual funds have increasingly become a favourite among investors looking for long term investing and steady wealth creation . Over the last decade, midcap mutual funds have delivered a strong 16.22 percent CAGR, outperforming most major equity categories. Only small-cap and select thematic funds have beaten them. Among these midcap funds, three stand out for their remarkable SIP returns : Motilal Oswal Midcap Fund , Invesco India Mid Cap Fund and Edelweiss Mid Cap Fund. Each of these funds has delivered more than 22 percent annualised returns over 10 years, making them top performers in wealth creation through disciplined SIP investment.

What makes midcap funds appealing is their balanced mix of growth and stability. They not only offer higher return potential but also show resilience over time. The 10-year average return of 16.22 percent CAGR highlights how consistent midcap mutual funds have been compared to large-cap, flexi-cap, ELSS, multi-cap and large and midcap categories. These numbers reinforce the rising confidence in midcap funds among long term investing enthusiasts who seek reliable wealth creation.

Within this strong-performing category, the top SIP performers have clearly separated themselves. For 10-year SIP returns, the leaders are Motilal Oswal Midcap Fund with 22.78 percent CAGR, Invesco India Mid Cap Fund with 22.73 percent CAGR and Edelweiss Mid Cap Fund with 22.66 percent CAGR. These consistent SIP returns underline why these midcap mutual funds are considered top choices for long term investing and stable wealth creation.

For investors who opted for a Rs 10,000 monthly SIP, the wealth creation has been impressive. Motilal Oswal Midcap Fund grew the same SIP amount to Rs 39.96 lakh, Invesco India Mid Cap Fund to Rs 39.85 lakh and Edelweiss Mid Cap Fund to Rs 39.67 lakh over 10 years. Even with a small difference in SIP returns, all three midcap funds nearly quadrupled the invested amount, showing how powerful long term investing can be in midcap mutual funds.

Interestingly, the ranking changes when comparing 10-year lump sum returns instead of SIP returns. Invesco India Mid Cap Fund delivered 20.20 percent, Edelweiss Mid Cap Fund delivered 19.89 percent and Motilal Oswal Midcap Fund delivered 19.25 percent. This difference shows that SIP investment worked better than lump sum for navigating volatility in midcap funds, reinforcing the value of long term investing through systematic investing.

The fund profiles offer deeper insights into how these midcap mutual funds operate. Motilal Oswal Midcap Fund has delivered a strong since inception return of 23.28 percent. With assets of Rs 38,003 crore and an expense ratio of 0.72 percent, it follows the NIFTY Midcap 150 TRI benchmark and carries a Very High risk rating. Its portfolio is tilted towards technology and domestic consumption, with top holdings such as Persistent Systems at 10.03 percent, Coforge at 9.92 percent, Eternal at 8.69 percent, Dixon Technologies at 8.07 percent and Kalyan Jewellers at 7.98 percent. These high-conviction picks show why this fund consistently delivers strong SIP returns in the midcap mutual funds space.

Invesco India Mid Cap Fund has generated a since inception return of 21.66 percent. With assets of Rs 10,007 crore and a 0.54 percent expense ratio, it tracks the BSE 150 MidCap TRI and carries a Very High risk rating. Its portfolio focuses on financial and consumer-tech names like AU Small Finance Bank at 5.59 percent, Swiggy at 5.23 percent, Federal Bank at 5.07 percent, L&T Finance at 4.89 percent and Prestige Estates at 4.59 percent. These diversified holdings contribute to its strong SIP returns and overall long term investing appeal among midcap funds.

Edelweiss Mid Cap Fund delivers a since inception return of 22.09 percent, managing assets worth Rs 12,647 crore at an expense ratio of 0.40 percent. It follows the NIFTY Midcap 150 TRI benchmark and is rated Very High risk. This fund spreads its exposure across technology, healthcare and financials, with top holdings including Coforge at 2.78 percent, Max Healthcare at 2.70 percent, Persistent Systems at 2.58 percent, Indian Bank at 2.28 percent and PB Fintech at 2.20 percent. These allocations explain its strong 10-year SIP returns and position it as one of the best midcap mutual funds for long term investing and wealth creation.

While these midcap funds have delivered excellent wealth creation over the years, investors should remember that past returns are not guaranteed in the future. Midcap mutual funds can be volatile and are impacted by market cycles, interest rate movements and economic conditions. Anyone considering SIP investment or lump sum investment in midcap funds should assess their risk tolerance, check portfolio strategy, and align choices with financial goals. Seeking guidance from a SEBI-registered financial advisor can help ensure smart long term investing decisions in midcap mutual funds.