A systematic investment plan (SIP) in the Mahindra Manulife Mid Cap Fund has delivered an XIRR (extended internal rate of return ) of 22.3% over the past eight years, marginally ahead of the 21.1% return generated by the Nifty Midcap 150 TRI during the same period, according to Ace Mutual Fund data.

Since its launch on January 30, 2018, the open-ended equity scheme, which largely invests in mid-cap stocks, has generally stayed ahead of its benchmark across several point-to-point return periods. Over the three-, five- and seven-year horizons, it has delivered returns that were at least two percentage points higher than the benchmark. It has also performed better than the category average across one-, three-, five- and seven-year periods.

How midcap funds have fared

The data showed that Midcap funds have delivered strong returns across timeframes, though performance varies from scheme to scheme. Over three years, HDFC Mid Cap Fund led the category with a 27% CAGR, followed very closely by Mahindra Manulife Mid Cap Fund at 26.7%. Motilal Oswal Midcap Fund also posted a solid 24.6%. The Nifty Midcap 150 TRI returned 24.8% during this period, slightly ahead of the category average of 23.4%. Kotak Midcap Fund delivered 23.2%, while Axis Midcap Fund and SBI Midcap Fund trailed at 21% and 18.9%, respectively.

On a five-year basis, Motilal Oswal Midcap Fund topped the charts with 26.2%, followed by HDFC Mid Cap Fund at 24.5% and Mahindra Manulife Mid Cap Fund at 23.8%. The benchmark index delivered 21.7%, modestly above the category average of 20.6%. Kotak Midcap Fund generated 21.6%, while SBI Midcap Fund and Axis Midcap Fund posted 19.5% and 17.7%, respectively.

In seven year tenure, Motilal Oswal Midcap Fund once again emerged as the best performer with 23.5%. Mahindra Manulife Mid Cap Fund and HDFC Mid Cap Fund both delivered 22.6%, with Kotak Midcap Fund close behind at 22.4%. The Nifty Midcap 150 TRI returned 21.2%, compared with the category average of 20.6%. Axis and SBI Midcap Funds each posted 19.9%.

Consistency on rolling returns

On a rolling return basis, the Mahindra Manulife Mid Cap Fund has shown a relatively consistent track record. Between January 2018 and February 2026, it outperformed its benchmark in over 80% of three-year rolling return observations, indicating relatively better risk-adjusted returns.

Over the eight-year period, the fund generated average returns of around 26%, compared with about 24.6% for the benchmark. This outperformance has not been accompanied by materially higher volatility. The standard deviation of three-year rolling returns stood at 5.2% for the fund versus 6% for the benchmark.

As of February 2026, the fund manages assets worth approximately ₹4,267 crore, and holds a portfolio of 61 stocks, with the top 10 holdings accounting for about 26% of assets. Financial services constitute the largest sector allocation at around 29%, with the fund gradually increasing exposure to this segment. Select investments in automobiles and auto components, healthcare, and capital goods have also contributed to performance over the medium term. The scheme remains largely invested, with cash and debt typically restricted to 2–3% of the portfolio.

Investor interest in midcap funds has grown in recent years. Assets under management of midcap schemes have risen to ₹4.61 lakh crore in December 2025 from ₹1.85 lakh crore in December 2022, accounting for roughly 13% of total equity mutual fund AUM.

The Nifty Midcap 150 TRI itself has delivered strong returns, outperforming both the Nifty 100 TRI and the Nifty Smallcap 250 TRI across one-, three-, five- and seven-year periods.

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