Midcap Funds Outshine: 10-Year SIP Returns Average 17.4%, Beating Smallcap and Largecap Indices

Midcap segment emerges as the most consistent wealth creator — outperforming largecap and smallcap funds with an average SIP return of 17.4% over the past decade, reveals White Oak Capital AMC study.

New Delhi (Economy India): Midcap stocks have emerged as the most consistent wealth creators for long-term investors, outperforming both largecap and smallcap segments in 10-year Systematic Investment Plan (SIP) performance.
According to a White Oak Capital AMC study, which analyzed monthly 10-year rolling returns (% XIRR) from August 1996 to September 2025, the Nifty Midcap 150 Total Return Index (TRI) delivered the highest average and median returns among all major equity indices.

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Midcap Segment Leads with 17.4% Average Returns

As per the study, the Nifty Midcap 150 TRI generated an average return of 17.4% and a median return of 17.9%, outperforming both the Nifty 100 TRI (13%) and Nifty Smallcap 250 TRI (14.8%) over the same period.
The Sensex recorded an average return of 12.64%, while the Nifty 50 showed a similar figure at 12.93%, based on 10-year rolling return data between June 2013 and May 2023.

This reinforces a long-term trend that midcap equities tend to outperform other market segments in SIP-based investments, owing to their higher growth potential and moderate volatility compared to smallcaps.

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Long-Term Investing: 10–15 Years Offers Stability and Growth

The report reaffirms what financial experts often suggest — the longer the investment horizon, the steadier and stronger the returns.
For investment durations between 10 to 15 years, the study found a stable return pattern, largely immune to SIP frequency variations (daily, weekly, or monthly). Over longer horizons, return variations narrow, leading to nearly identical outcomes across SIP intervals.

“Consistency and discipline matter more than timing. Over a 10-year-plus horizon, midcap investments reward patience with compounding benefits,” said an analyst from White Oak Capital AMC.

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Category-Wise Performance Snapshot

Category	Minimum Return	Maximum Return	Average Return	Median Return	Positive Return
Largecap	4.3%	17.1%	13.0%	13.3%	100%
Midcap	5.9%	23.6%	17.4%	17.9%	100%
Smallcap	-0.5%	22.4%	14.8%	15.4%	100%

Source: White Oak Capital SIP Study Report (1996–2025)

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SIP Returns Analysis Across Different Timeframes

Investment Tenure	Maximum Return	Minimum Return	Average Return	Median Return	Positive Return
3 Years	55.6%	-24.6%	15.7%	14.8%	88%
5 Years	50.0%	-9.5%	15.2%	14.0%	91%
10 Years	29.8%	4.6%	15.6%	14.3%	100%
15 Years	18.2%	7.3%	14.2%	14.2%	100%

The data clearly shows that over a 10- to 15-year horizon, SIP investments have zero loss probability and consistently generate double-digit annualized returns, confirming the resilience of the midcap category.

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Midcap Index Shows 100% Positive 10-Year Returns

The Nifty Midcap 150 TRI delivered 100% positive returns across all 10-year rolling periods. In 98% of the observed cases, investors earned more than 10% returns, in 95% of the cases above 12%, and in 79% of the cases over 15% annualized returns.

This performance outpaces both largecap and smallcap benchmarks, highlighting the midcap segment’s balance between risk and reward.

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Switching Between Funds Reduces Returns

Interestingly, the study warns against frequent switching between SIP categories.
An investor who switched SIPs annually earned an average return of 15.24%, while one who stayed invested solely in midcap funds would have earned 17.30% over the same period — a clear indication that consistency beats tactical switching in long-term wealth creation.

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🧾 Economy India Investment Insight Box

Metric	Details
Study Source	White Oak Capital AMC SIP Study Report (1996–2025)
Top Performer	Nifty Midcap 150 TRI
Average 10-Year Return (Midcap)	17.4%
Sensex 10-Year Average Return	12.64%
Nifty 50 10-Year Average Return	12.93%
Smallcap 10-Year Average Return	14.8%
Maximum Midcap Return	23.6% p.a.
Investment Strategy	Long-term SIP (10–15 years) for stable compounding
Key Takeaway	Consistency and discipline outperform frequent fund switching

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Expert View

Financial planners suggest that investors should focus on long-term compounding rather than short-term market movements.
Midcap funds offer the right balance between the growth potential of smallcaps and the stability of largecaps, making them a powerful option for disciplined SIP investors.

“Midcaps deliver the sweet spot — enough risk to grow faster than largecaps but enough maturity to survive volatility,” says a senior investment strategist at Economy India.

(Economy India)