Top Performing Midcap Mutual Funds: Rs 5 Lakh Investment Grows to Over Rs 20 Lakh in 5 Years
Top Midcap Mutual Funds That Turned Rs 5 Lakh Investment into Rs 20 Lakh in Just 5 Years
In the world of mutual funds, midcap mutual funds stand out as a great option for investors seeking strong growth over time. Midcap funds, also known as mid-cap funds, invest in stocks of medium-sized companies, which generally have the potential for faster growth compared to larger corporations. These funds are not only more aggressive but also more volatile, making them an ideal choice for investors with a higher risk appetite and a longer-term horizon.
When we take a closer look at how these midcap mutual funds have performed over the last five years, the numbers speak for themselves. According to recent data from the Association of Mutual Funds in India (AMFI), several top midcap mutual funds have delivered impressive annualized returns ranging between 30% and 35%, which is exceptional in the context of equity investments. With such returns, an investment of Rs 5 lakh made five years ago in any of the top-performing midcap funds has grown to more than Rs 20 lakh.
Motilal Oswal Midcap Fund, Quant Mid Cap Fund, and Edelweiss Mid Cap Fund are among the front-runners, providing investors with annualized returns of over 30% during this period. Motilal Oswal Midcap Fund led the pack, posting an exceptional return of 35.04%, closely followed by Quant Mid Cap Fund at 34.65%. Edelweiss Mid Cap Fund also performed impressively, offering investors returns of 32.1%. These three funds in particular have turned an initial investment of Rs 5 lakh into more than Rs 20 lakh in just five years, a perfect example of the potential of midcap funds.
Other funds such as PGIM India Midcap Opportunities Fund (30.65%), Nippon India Growth Fund (30.09%), and Invesco India Mid Cap Fund (29.94%) have also performed quite well. These funds have helped investors build their wealth steadily over time, with growth rates between 29% and 30% annually over five years. All of this underlines why midcap funds are so attractive for long-term growth, offering robust returns that help investors achieve substantial portfolio appreciation.
Interestingly, even other options like Mahindra Manulife Mid Cap Fund, HDFC Mid-Cap Opportunities Fund, and Kotak Emerging Equity Fund have had their share of success, achieving returns in the range of 28% to 30%. These funds have proven their worth by making attractive returns for investors, further demonstrating how diverse the midcap category can be.
To put this into perspective, if you had invested Rs 5 lakh in any of these top midcap funds five years ago, it would have likely appreciated to anywhere between Rs 17.18 lakh and Rs 22.42 lakh based on annualized returns. For the top three funds, this growth would have exceeded Rs 20 lakh, highlighting the impressive potential of investing in midcap funds at the right time.
Not only do these funds provide robust returns for lump-sum investments, but they also shine in the world of systematic investment plans (SIPs). If you had started a monthly SIP of just Rs 1,000 in one of these funds five years ago, you’d be looking at returns ranging from Rs 1.2 lakh to Rs 1.7 lakh by now. This highlights the power of consistent investing and compounding over the long run, turning modest monthly contributions into meaningful wealth over time.
In conclusion, midcap mutual funds have been an excellent asset class for investors looking to achieve high growth, especially in the past five years. With annualized returns that could grow your investment by 30% to 35%, these funds continue to showcase their potential. If you’re looking to harness the power of midcap stocks and grow your wealth, these top-performing midcap mutual funds should definitely be on your radar.
Before investing, it’s crucial to assess your risk tolerance and investment goals. Midcap funds, though highly rewarding, can be volatile. With proper strategy and time, you can enjoy their superior returns while building your financial future.
