Widely read:
Aditya Roy/AI-Generated Image
Summary: Find out the average 10-year SIP returns of mid-cap and small-cap funds. Investors in these funds should definitely take note as to how rapidly money has grown in the last 10 years.
It’s easy to lose faith in small- and mid-cap funds right now. After all, small-cap schemes have taken quite a few punches this year, sinking 2.25 per cent on average so far. Mid caps haven’t exactly been the life of the party either, inching up by 2.3 per cent.
But as any seasoned investor knows, one bad year doesn’t define an entire journey. Especially not in these high-octane segments of the market. Contrary to popular perception, mid- and small-cap funds are like marathon runners. They may stumble along the way, but give them enough track and they’ll show you what endurance really looks like.
With these funds, looking at one-year or even three-year returns is like judging a cricket match after the first few overs. Volatility is part of the deal. The real picture only emerges when you zoom out, seven years or more is where these funds truly stretch their legs.
So, if you’re planning to invest in a mid- or small-cap fund or are currently invested in them, treat it as a long-term commitment. The longer you stay invested, the better your odds of compounding meaningful wealth. And data is a testament to it.
The power of patience
-
Mid-cap funds: Had you started a Rs 10,000 monthly SIP in a mid-cap fund in November 2015, your corpus today would have grown to Rs 37.4 lakh. That’s an annualised return of 19.7 per cent over ten years, more than tripling your wealth.
-
Small-cap funds: Small-caps have done even better. A Rs 10,000 monthly SIP over the same period would now be worth Rs 38.4 lakh, delivering an impressive 20.1 per cent annualised return.
These numbers are not flukes. They’re proof that volatility in the short run often hides compounding in the long run.
Our take
If you already invest in these categories, don’t panic over this year’s underwhelming show.
The lesson is simple. Don’t pull the plug when the market tests your patience. History suggests that real reward comes to those who stay put. And the same rule applies to mid- and small-cap funds. They are built for long-term wealth creation, but only if you let time do its job.
So, instead of timing the market, focus on time in the market. As the last decade shows, that’s how investors turn perseverance into prosperity.
Do you want to find out how your mid-cap and small-cap funds are faring vis-a-vis their peers? Check out our Mutual Fund Monitor page.
Also read: SIP returns of India's largest funds in last 5 and 10 years
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
For grievances: [email protected]
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
