In a mutual fund category known for volatility, only a handful of schemes have managed to survive market cycles, deliver long-term returns, and still earn the highest ratings. Among mid-cap funds, HDFC Mid Cap Fund and Nippon India Growth Mid Cap Fund stand out as clear leaders.
Both are among the oldest mid-cap funds in India, both carry 5-star ratings from Value Research, and both also manage some of the largest assets in the mid-cap category. Importantly, they are part of a very small group of just three mid-cap funds that are over 10 years old and still hold a 5-star rating. The third fund in this elite list is Motilal Oswal Midcap Fund.
When the lens is widened to a 15-year track record, the list narrows further.
Only two funds qualify — Nippon India Growth Mid Cap Fund, which is now over 30 years old, and HDFC Mid Cap Fund, which has completed more than 18 years.
Here’s a closer look at how these two long-standing mid-cap funds compare in terms of returns, risk profile, and portfolio construction.
Nippon India Growth Mid Cap Fund: Three decades of compounding
Launched in October 1995, Nippon India Growth Mid Cap Fund is one of the oldest equity mutual funds in the country, not just in the mid-cap space.
Key details at a glance
Fund House: Nippon India Mutual Fund
Category: Mid Cap Fund (Open-ended equity)
Launch Date: 08 October 1995
Benchmark: NIFTY Midcap 150 TRI
Risk Level: Very High
AUM: Rs 42,042 crore (as on 30 November 2025)
Expense Ratio: 1.54% (as on 31 December 2025)
Returns across timeframes
The fund’s long history clearly shows the power of staying invested through market cycles.
5-year return: 22.08% CAGR
10-year return: 18.14% CAGR
15-year return: 15.38% CAGR
20-year return: 16.83% CAGR
Since launch (1995): 26.43% CAGR
To put this in perspective, Rs 1 lakh invested 30 years ago is worth about Rs 4.26 crore today. This highlights how early participation and patience in mid-cap investing can lead to extraordinary wealth creation.
(Source: Value Research, fund factsheet)
Risk profile
Despite being classified as Very High Risk, the fund has shown balanced risk-adjusted performance over long periods.
Standard Deviation: 15.38
Sharpe Ratio: 1.14
Sortino Ratio: 1.68
Beta: 0.96
Portfolio mix: sector exposure
The fund’s portfolio is diversified across key growth-oriented sectors:
Financials: 25.30% (Category avg: 23.88%)
Industrials: 18.42% (Category avg: 17.68%)
Consumer Discretionary: 16.78% (Category avg: 12.77%)
Healthcare: 11.40% (Category avg: 9.34%)
Technology: 8.20% (Category avg: 11.95%)
Top holdings
Some of the major stocks driving the portfolio include:
BSE: 3.52%
Fortis Healthcare: 2.96%
The Federal Bank: 2.52%
AU Small Finance Bank: 2.50%
Persistent Systems: 2.48%
HDFC Mid Cap Fund: Consistency with lower volatility
Launched in June 2007, HDFC Mid Cap Fund may be younger than its Nippon peer, but it has built a strong reputation for steady long-term performance with relatively lower volatility.
Key details at a glance
Fund House: HDFC Mutual Fund
Category: Mid Cap Fund (Open-ended equity)
Launch Date: 25 June 2007
Benchmark: NIFTY Midcap 150 TRI
Risk Level: Very High
AUM: Rs 92,169 crore (as on 30 November 2025)
Expense Ratio: 1.36% (as on 31 December 2025)
Returns across timeframes
HDFC Mid Cap Fund has delivered strong compounding since inception.
5-year return: 21.31% CAGR
10-year return: 18.21% CAGR
15-year return: 18.35% CAGR
Since launch: 17.70% CAGR
An investment of Rs 1 lakh at launch has grown to around Rs 19 lakh, underscoring the fund’s long-term wealth creation potential.
Risk profile
The fund scores better on several risk-adjusted parameters, indicating relatively smoother performance.
Standard Deviation: 13.81
Sharpe Ratio: 1.29
Sortino Ratio: 1.82
Beta: 0.86
Portfolio mix: sector exposure
The portfolio shows a strong tilt towards financials, along with meaningful exposure to technology and healthcare.
Financials: 27.27% (Category avg: 23.88%)
Consumer Discretionary: 13.34% (Category avg: 12.77%)
Technology: 13.11% (Category avg: 11.95%)
Healthcare: 12.27% (Category avg: 9.34%)
Industrials: 9.24% (Category avg: 17.68%)
Top holdings
Key stocks in the portfolio include:
Max Financial Services: 4.76%
AU Small Finance Bank: 4.06%
The Federal Bank: 3.58%
Indian Bank: 3.48%
Balkrishna Industries: 3.31%
(Source: Value Research, factsheet)
The bottom line
Both HDFC Mid Cap Fund and Nippon India Growth Mid Cap Fund have proved their mettle across multiple market cycles. While Nippon India Growth Mid Cap Fund stands out for its three-decade-long compounding history, HDFC Mid Cap Fund offers strong long-term returns with relatively lower volatility and higher risk-adjusted metrics.
For investors, the key takeaway is clear: mid-cap investing rewards patience, not short-term return chasing. Past performance shows what these funds have achieved, but future returns may differ. Investors should align any choice with their risk appetite, investment horizon, and financial goals, rather than focusing only on historical numbers.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.
