A recent report stated long-term investment strategies in equity mutual funds have demonstrated resilience, even in light of the monthly underperformance of major indices. 
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A recent report stated long-term investment strategies in equity mutual funds have demonstrated resilience, even in light of the monthly underperformance of major indices. The Nifty Midcap 150 Index has experienced a decrease of nearly 20% from its highest point in the past 52 weeks. Up until the end of February, mid cap funds had an average loss of around 9.57%, with the Quant Mid Cap Fund showing the largest decline at 11.07% in the last month. Over the past three and six months, the losses for mid-cap funds have been in the double digits.
In the last three months, mid-cap funds averaged a loss of 17.56%. Mid cap funds have offered an average return of 28.84% in 2024.
This week, the Nifty 50 once again crossed the 23,000 mark after a month. Experts suggest that investors seeking long-term wealth growth and willing to tolerate equity market volatility should consider large and midcap funds, multicap funds, or flexicap funds as viable options.
B Padmanaban, financial planner and mutual fund expert, in a post said an analysis of the Midcap's performance over the past five years, both in lump sum and SIP, reveals a 20% decline from its peak in September 2024. Despite this, the returns remain impressive.
To build wealth, one must exercise time, patience, and knowledge, which can be facilitated with the guidance of a knowledgeable investor.
"Five years ago, the market hit its lowest point, and tomorrow marks the fifth anniversary of the first COVID lockdown. The best time to invest in the Indian stock market was between 2020 and 2025! Examine the Midcap's performance over the last five years, both in lump sum and SIP, and see that it has fallen 20% from its peak in September 2024. Still the returns are awesome. Creating wealth needs time, patience, and understanding, which is relatively easy for any investor if they have someone to guide them along the way," Padmanaban wrote.
Five years ago, the market hit its lowest point, and tomorrow marks the fifth anniversary of the first COVID lockdown.
The best time to invest in the Indian stock market was between 2020 and 2025!
Examine the Midcap's performance over the last five years, both in lump sum and… pic.twitter.com/rK0yj9gtHO
Midcap fund performance
The mid-cap mutual fund is an equity fund that primarily invests in mid-sized companies, typically situated between large-cap and small-cap companies in terms of market capitalization. These funds aim to strike a balance between growth and stability, offering greater return potential than large-cap funds while presenting lower risk than small-cap funds.
The NIFTY Midcap 100 Index, which tracks the performance of 100 mid-cap companies listed on the National Stock Exchange (NSE) in India, has exhibited significant growth over the past five years.
As of March 21, 2025, the NIFTY Midcap 100 Index closed at 51,850.75. This reflects a substantial increase from its level five years ago, indicating robust growth in the mid-cap segment during this period.
Over the past five years, the NIFTY Midcap 100 Index has delivered a Compound Annual Growth Rate (CAGR) of approximately 32.5%. This performance underscores the strong returns generated by mid-cap companies in India over the last half-decade.
Top 5 equity mid-cap funds with up to 27% returns in 5 years
Motilal Oswal Large and Midcap Fund - Regular Plan
Net Assets: Rs 24,488.00 crore (Feb 19,2025)
3-Month Returns: -11.23%
6-Month Returns: -7.09%
1-Year Returns: 21.63%
3-Year Returns: 27.66%
5-Year Returns: 26.07%
Expense Ratio: 1.58%
HDFC Mid-Cap Opportunities Fund
Net Assets: Rs 73,510.09 crore (Feb 19,2025)
3-Month Returns: -6.97%
6-Month Returns: -8.42 %
1-Year Returns: 6.72%
3-Year Returns: 23.80%
5-Year Returns: 24.40%
Expense Ratio: 1.40 %
Nippon India Growth Fund
Net Assets: Rs 33,033.09 crore (Feb 19,2025)
3-Month Returns: -9.52 %
6-Month Returns: -10.48 %
1-Year Returns: 8.20%
3-Year Returns: 21.64 %
5-Year Returns: 23.68%
Expense Ratio: 1.59 %
Edelweiss Mid Cap Fund - Regular Plan
Net Assets: Rs 8,268.27 crore (Feb 19,2025)
3-Month Returns: -9.26 %
6-Month Returns: -9.88%
1-Year Returns: 11.65 %
3-Year Returns: 21.57 %
5-Year Returns: 24.20%
Expense Ratio: 1.73%
Quant Mid Cap Fund
Net Assets: Rs 8,608.01 crore (Feb 19,2025)
3-Month Returns: -7.87%
6-Month Returns: -18.57%
1-Year Returns: -5.98 %
3-Year Returns: 19.13%
5-Year Returns: 27.46%
Expense Ratio: 1.77 %
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