Value Research data cited by LiveMint shows that only a small subset of mid-cap mutual funds delivered strong performance when three-year SIP returns were annualised. The analysis found that just four mid-cap schemes surpassed the 17% mark, highlighting a wide dispersion within the category.
Leading the pack was HSBC Midcap Fund, posting about 20.70% in annualised returns over the three-year SIP horizon. This demonstrates how much returns can vary within the mid-cap space even among funds with similar mandates.
Beyond the top performer, several of the mid-cap funds with the largest assets under management delivered lower results, underscoring a notable performance gap across the category.
Font of caution for investors: well-known names among the category, including HDFC and Kotak mid-cap offerings, were among those that lagged relative to the best-performing funds over the same period.
Overall, the data reinforces that mid-cap funds can generate sizable gains but exhibit considerable volatility and divergence in outcomes. Investors should evaluate funds on multiple fronts—consistency of returns, risk profile, expense ratios, and the manager’s track record across market cycles—rather than relying solely on three-year numbers or an fund’s size.
Source: Value Research data cited by LiveMint.
