For investors looking for a mutual fund that has delivered steady and strong SIP returns across different time periods, Motilal Oswal Midcap Fund – Direct Plan – Growth clearly stands out. Based on its performance over 3, 5 and 10 years, this fund has emerged as the best-performing scheme from Motilal Oswal Mutual Fund, consistently delivering around 20% CAGR returns through SIPs.
In a category known for volatility, the fund’s ability to remain among the top performers over long periods has caught the attention of long-term investors.
SIP returns: Strong performance across all key periods
Motilal Oswal Midcap Fund has delivered robust SIP returns over short, medium and long-term horizons:
3-year SIP return: 19.65% CAGR
Based on this return, Rs 10,000 SIP started 3 years ago would be worth now Rs 4.8 lakh.
5-year SIP return: 24.73% CAGR
Based on this return, Rs 10,000 SIP would have become Rs 11.04 lakh after 5 years.
10-year SIP return: 22.20% CAGR
Based on this return, a Rs 10,000 SIP started 3 years ago would be worth now around Rs 39 lakh.
SIP returns since launch (24 February 2014): 21.08% CAGR
An investment of Rs 10,000 per month in the fund’s SIP plan (direct) would have become Rs 45.5 lakh in 11 years.
(Source: Value Research, AMFI)
Based on 5-year SIP returns, the fund ranks No. 1 in the mid-cap category.
For 10-year SIP returns, it is among the top three mid-cap schemes.
Lump sum returns also remain impressive
The fund has rewarded lump sum investors as well, especially over medium-term periods:
3-year lump sum return: 25.33% CAGR
5-year lump sum return: 29.45% CAGR
10-year lump sum return: 18.77% CAGR
This shows that the fund has been able to create wealth through both SIP and lump sum routes.
Basic details of Motilal Oswal Midcap Fund
Launch date: February 24, 2014
Return since launch: 22.9% CAGR
Benchmark: NIFTY Midcap 150 TRI
Fund type: Open-ended equity scheme
Risk level: Very High
Assets under management (AUM): Rs 38,003 crore (as of Nov 30, 2025)
Expense ratio: 0.72% (Direct plan)
(Source: AMFI, Fund Fact Sheet)
Sector allocation shows high-conviction bets
The fund follows a focused strategy, with clear sector preferences:
Technology: 38.8% (vs 12% category average)
Consumer Discretionary: 20.4% (vs 12.8% category average)
Industrials: 17.1% (broadly in line with category)
Financials: 11.7% (much lower than 23.9% category average)
Real Estate: 2.4% (close to category average)
The heavy tilt towards technology and consumption-related stocks reflects the fund manager’s long-term growth outlook.
Top stock holdings
The fund maintains a concentrated portfolio, with a few high-conviction stocks forming a large part of assets:
Persistent Systems (Technology): 10%
Coforge (Technology): 10%
Eternal (Technology): 8.7%
Dixon Technologies (Consumer Discretionary): 8.1%
Kalyan Jewellers (Consumer Discretionary): 8%
Together, these stocks account for a significant share of the portfolio.
Risk profile: High risk, but strong risk-adjusted returns
As a mid-cap fund, Motilal Oswal Midcap Fund falls in the Very High Risk category:
Standard deviation: 17.73%, indicating higher volatility
Sharpe ratio: 1.10, showing good risk-adjusted returns
Sortino ratio: 1.37, reflecting better downside protection
Beta: 0.92, slightly less volatile than the market
Alpha: 4.92%, indicating consistent outperformance over benchmark
Why investors should not look at returns alone
While the past returns of Motilal Oswal Midcap Fund look attractive, investors should remember that past performance does not guarantee future returns. The strong gains seen in earlier years were supported by favourable market conditions and sector cycles, which may not always repeat.
Mid-cap funds can be volatile and may underperform during market corrections. Factors such as risk appetite, investment horizon, asset allocation and diversification should play a key role in fund selection. Long-term investors with the ability to stay invested during volatility are better positioned to benefit from such funds.
For investors with a high-risk tolerance and long-term goals, Motilal Oswal Midcap Fund has proven to be a strong wealth creator—but it should always be chosen as part of a well-balanced portfolio.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.