Investing in the right mutual fund can create long-term wealth, and the performance of Sundaram Midcap Fund proves exactly that. This fund, which completed 23 years in July 2025, is one of the oldest midcap funds in India and has delivered impressive returns to investors who stayed committed over the long term.
If an investor had started a Systematic Investment Plan (SIP) of ₹10,000 per month in July 2002, the corpus today would have grown to approximately ₹4.71 crore. Even a lump sum investment of ₹1 lakh at the same time would have turned into around ₹1.4 crore over the same period.
Sundaram Midcap Fund was launched in July 2002, making it one of India’s earliest midcap-focused mutual funds. It primarily follows a bottom-up stock-picking strategy, identifying fundamentally strong companies in the midcap segment that show high long-term growth potential.
Over the last 23 years, the fund has generated an annualized return of around 20.7%, reflecting the growth potential of midcap stocks when combined with disciplined investing.
According to Bharath S, Head of Equities at Sundaram Mutual Fund, the fund’s focus has consistently been on companies with strong fundamentals and sustainable growth opportunities.
Key features of the fund’s approach include:
Risk control and disciplined valuations while selecting stocks.
65% to 100% allocation to midcap equities and related instruments.
0% to 35% allocation to other equities, providing some diversification.
Benchmarking against Nifty Midcap 150 TRI, which tracks the broader midcap market performance.
The fund is managed by Bharath S and Ratheesh B Varier, who follow a strategy aimed at capital appreciation. However, the fund house advises that midcap stocks are more volatile than large-cap stocks, meaning investors must be prepared for market fluctuations.
Midcap funds typically outperform large-cap funds in rising markets due to higher growth potential, but they also fall faster during market corrections. Therefore, this fund is ideal for investors with a long-term horizon who can handle short-term volatility.
Investors should consider this fund if:
They want higher growth potential than large-cap funds.
They can remain invested for 7–10 years or longer.
They understand that market corrections may temporarily reduce the portfolio value.
Financial experts emphasize that historical returns should not be the only factor in investment decisions.
Fund performance depends on market conditions, economic cycles, and the fund manager’s strategy.
Past success does not guarantee similar returns in the future.
Investors should assess risk appetite and financial goals before starting an SIP or making a lump sum investment.
The journey of Sundaram Midcap Fund highlights the power of long-term investing and disciplined SIP contributions. A simple ₹10,000 monthly SIP over 23 years has created multi-crore wealth, showcasing how midcap funds can transform small, consistent investments into substantial portfolios.
For investors aiming to build long-term wealth, a well-managed midcap mutual fund like this can be an effective part of a diversified investment strategy—provided they are ready to ride out market volatility for potential high rewards.
