HSBC Midcap Fund Leads Indian Peers in Three-Year SIP Returns; Large Funds Lag

Few Funds Cross 17% Mark

Only four Indian mid-cap funds delivered over 17% annualised returns on three-year Systemic Investment Plans (SIPs). HSBC Midcap Fund led this group, recording a 20.70% return, according to Value Research data. This performance highlights a significant disparity within the category.

Several of the largest funds by assets under management (AUM) showed considerably lower returns over the same period, challenging common assumptions about fund size and performance.

Top Performers Defined

Beyond HSBC, three other funds surpassed the 17% threshold. Invesco India Mid Cap Fund posted an 18.82% return. WhiteOak Capital Mid Cap Fund followed closely at 18.39%. ICICI Prudential Mid Cap Fund completed the top four, delivering 17.16% for investors. The returns of these top funds created a notable gap from the next tier of performers. For example, Bandhan Mid Cap Fund returned 14.82%, while Edelweiss Mid Cap Fund showed 14.58%.

AUM Not a Performance Indicator

Fund size did not correlate with higher recent returns, Value Research data reveals. HDFC Mid Cap Fund, the largest in the category with ₹1,05,143 crore in net assets, delivered only 12.45%. Kotak Mid Cap Fund, the second largest at ₹69,283 crore, returned 13.67%. Other substantial funds also underperformed the top tier.

SBI Midcap Fund, with ₹24,354 crore in assets, delivered 7.04%, while Quant Mid Cap Fund recorded the lowest return at 4.48%.

Investor Takeaway

This performance divergence suggests investors should look beyond AUM when evaluating Indian mid-cap funds. Fund size alone does not guarantee superior short-term returns. Instead, a deeper analysis of investment strategy, portfolio construction, and risk management across various market cycles becomes critical.

This helps identify funds with consistent performance, rather than focusing solely on their asset base or recent three-year figures.