Midcap segment can be a good mutual fund SIP option: WhiteOak Capital report

An average Large Cap stock is typically less volatile than an average Small and Midcap stock, adding stability to the portfolio. However, the Nifty Midcap 150 TRI delivered strong and consistent performance, with average and median returns of 17.4% and 17.9%, respectively. It also achieved 100% positive returns and outperformed peers, delivering returns above 10% in 98% of instances, above 12% in 95%, and above 15% in 79% of periods.

The WhiteOak Capital AMC study shows that, among the three market cap segments, the midcap segment is a good investment option for investors looking to invest through the long-term SIP route.

The AMC has issued a note on SIP titled ‘SIP Analysis Report’. According to the fund house, the mid-cap segment is a good investment option for investors looking to invest through the long-term SIP route. It is suggested that the mid-cap segment may offer many opportunities for potential higher growth.

The case study examines an investor who started an SIP in the Mid Cap Index and annually switched it to the best-performing index of the previous year. The final XIRR percentage for this investor would have been 15.24% (as of 30-Sep-2025). Conversely, if the investor had continued the SIP solely with the Mid Cap Index without switching, the XIRR would have been 17.3% (as of 30-Sep-2025).

Looking at the 10-Year Rolling SIP Return, the average XIRR for SIPs in the Mid Cap Index is 17.43%, compared to an XIRR of 15.62% for an investor who started SIP in the Mid Cap Index and switched to the previous year's best-performing index.

Historical data analysis also suggests that, in the long run, it hardly matters whether the investor invests via Daily, Weekly, or Monthly SIP frequency. All three options produce somewhat similar returns.

The main point from the analysis is to invest a small amount consistently over the long term.

According to the study, whether you invest money in the market daily, weekly, or monthly, the long-term outcome in this example looks almost identical —like twins dressed in different shirts. Investing the same total amount in the BSE Sensex TRI since August 1996, a daily SIP of ₹1,000 grows to about ₹12.81 crore, a weekly SIP of ₹6,997 reaches nearly ₹12.82 crore, and a monthly SIP of ₹30,386 rises to approximately ₹12.94 crore. The returns, measured by XIRR, are 14.17% across all three cases, demonstrating that consistency and staying invested are much more important than timing the intervals. However, past performance can be unpredictable, so the future may present a different story.

According to the WhiteOak Capital Mutual Fund report, SIP is a better strategy than frequently changing lanes, as constantly switching can be stressful and harmful. Therefore, investors should focus on reaching their ultimate financial goals by maintaining SIPs over the long term.