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Summary: A mid-cap fund completing its first three years is usually a routine milestone. But when it steps into that third anniversary carrying a brand-new five-star Value Research rating, it is impossible to ignore. WhiteOak Capital Mid Cap has not only outperformed some of the biggest funds in its space, it has also delivered more positive weeks than any other mid-cap peer since launch. Its portfolio shows a striking pattern too: small-caps graduating into mid-caps, mid-caps turning into large-caps, and a series of high-conviction picks compounding quietly in the background. If you want to understand and know which stocks are really driving this fund’s rise, this is the story to read.
When a mid-cap fund quietly completes its first three years and walks straight into a five-star rating, it deserves a closer look. That is exactly what has happened with WhiteOak Capital Mid Cap, now one of just four mid-cap funds to hold a coveted five-star Value Research rating.
And while our ratings are a starting point, never a recommendation, the story behind this one is worth unpacking.
One of the strongest three-year performances in its category
Launched in September 2022, the fund has been a standout performer. Over its three-year period, it has delivered 26.3 per cent annualised returns, the second-highest in the mid-cap category. Only Invesco India Mid Cap edges it out at 26.9 per cent.
Furthermore, it has comfortably outpaced the four largest mid-cap funds in the country, such as HDFC Mid Cap (25.4 per cent), Kotak Midcap (20.3 per cent), Nippon India Midcap (23.7 per cent) and Motilal Oswal Midcap (25.5 per cent).
Having said that, strong returns alone don’t make a great fund. Consistency matters just as much, and on that front, the fund’s numbers get even more interesting.
Since the fund is only three years and two months old, we examined its 167 weekly return periods from 15 September 2022 onwards to judge consistency. The result was striking. The fund has delivered 110 positive weeks, more than any other mid-cap fund in the country.
Additionally, compared to the fund’s 110 positive weeks, the other top-rated or top-performing funds – HDFC (107), Motilal Oswal (105), Nippon India (105), Edelweiss (104) and Kotak (103) – paled in comparison.
What has worked for the fund?
Mid-cap funds must invest at least 65 per cent of their assets in mid-cap stocks. The remaining can be invested in large-caps and small-caps.
Across the mid-cap fund category (Oct 2022–Oct 2025), funds have on average allocated:
- 75.3 per cent to mid-caps
- 12.9 per cent to small-caps
- 11.9 per cent to large-caps
WhiteOak’s approach has been notably more small-cap friendly. Its exposure to small-caps stands at 22.4 per cent, nearly 10 percentage points higher than the category average.
A few months ago, Ramesh Mantri, CIO of the fund house, summed up their philosophy to Value Research: “We also have significant exposure to small caps that we expect will graduate into mid caps over time. Our portfolio is structured as a combination of mid-cap and small-cap stocks. That’s our approach — today’s mid caps and tomorrow’s mid caps (today’s small caps).”
And the data backs him. Ten of the fund’s small-cap holdings have already progressed into mid-caps, as you can see below.
Small-cap holdings that graduated to mid-cap
| Company | Average net asset between Oct 2022 and Oct 2025 (%) | Holding period |
|---|---|---|
| 360 One Wam | 1.2 per cent | Since Oct 2022 |
| Ajanta Pharma | 1.1 per cent | Since Oct 2022 |
| Blue Star | 0.41 per cent | Since Feb 2023 |
| Cholamandalam Financial Holdings | 0.3 per cent | Since Oct 2024 |
| Fine Organic Industries | 0.25 per cent | Since Oct 2022 |
| Global Health | 0.74 per cent | Feb 2023–Sep 2024 |
| IIFL Finance | 1.8 per cent | Oct 2022–Feb 2024 |
| Kaynes Technology India | 1.3 per cent | Since Oct 2022 |
| Laurus Labs | 1.4 per cent | Since Apr 2025 |
| Multi Commodity Exchange of India | 0.3 per cent | Since Oct 2024 |
In fact, 13 mid-caps in the portfolio have gone on to become large-caps. This indicates that the fund hasn’t just found potential, it has held on long enough to benefit from it.
Mid-cap holdings that graduated to large-cap
|
Company
|
First holding date | Last holding date | Holding period | Average net asset (%) |
| ABB India | 31/10/2022 | 31/10/2023 | 1 year 0 months | 0.6691 |
| CG Power and Industrial Solutions | 31/10/2022 | 31/03/2025 | 2 years 5 months | 3.1096 |
| Indus Towers | 30/04/2024 | 31/12/2024 | 0 years 8 months | 0.7092 |
| JSW Energy | 30/04/2024 | 31/08/2024 | 0 years 4 months | 0.4056 |
| Lupin | 30/04/2024 | 31/10/2025 | 1 year 6 months | 1.437 |
| Max Healthcare Institute | 31/01/2023 | 31/08/2025 | 2 years 7 months | 2.1704 |
| Polycab India | 31/05/2023 | 31/12/2023 | 0 years 7 months | 1.3612 |
| Power Finance Corporation | 31/03/2023 | 31/10/2025 | 2 years 7 months | 0.9415 |
| REC | 31/07/2023 | 31/10/2025 | 2 years 3 months | 1.2165 |
| The Indian Hotels Company | 31/05/2023 | 30/09/2025 | 2 years 4 months | 2.4436 |
| Trent | 31/10/2022 | 30/09/2025 | 2 years 11 months | 1.2122 |
| Varun Beverages | 30/11/2022 | 30/09/2025 | 2 years 10 months | 0.6725 |
| Zydus Lifesciences | 29/02/2024 | 31/07/2024 | 0 years 5 months | 0.7022 |
This steady migration of mid-caps into the large-cap zone reflects a portfolio that spots scalable businesses early and holds them through their growth curve.
Furthermore, of the fund’s 15 uninterrupted holdings since October 2022, the five strongest performers have been:
- Dixon Technologies – 55.5 per cent XIRR
- The Phoenix Mills – 44.8 per cent XIRR
- Persistent Systems – 40.3 per cent XIRR
- Safari Industries – 35 per cent XIRR
- 360 One Wam – 21.8 per cent XIRR
Other strong long-term holdings include:
- Fortis Healthcare – 81.9 per cent XIRR over 34 months
- Power Finance Corporation – 93.2 per cent XIRR over 32 months
- Muthoot Finance – 67.4 per cent XIRR over 31 months
- CG Power & Industrial Solutions – 52.3 per cent XIRR over 30 months
- Trent – 44.2 per cent XIRR over 36 months
For those unaware, XIRR tells you the true annualised return when money goes in and out at different times. It captures the real investor experience better than simple point-to-point returns.
The fund’s recent picks have surged as well. Nine stocks held for at least 12 months have generated over 99 per cent returns, including:
- IDFC First Bank – 236.6 per cent
- Kaynes Technology India – 199 per cent
- Senco Gold – 189.5 per cent
- Neuland Laboratories – 139.3 per cent
- KRN Heat Exchanger and Refrigeration – 126.6 per cent
- Vesuvius India – 103.5 per cent
- Global Health – 99.7 per cent
- Acutaas Chemicals – 99.4 per cent
This suggests the portfolio isn’t just riding past winners. Its recent stock selection has been strong, too.
Should you invest in WhiteOak’s mid-cap fund?
The fund’s net assets have surged over ninefold, from Rs 434 crore to Rs 4,075 crore in just over three years. This kind of growth typically reflects two things:
- Performance – as NAV rises, the fund’s assets grow.
- Popularity – more investors allocate fresh money to it.
But here’s the key, while Value Research Ratings has assigned five stars to it, this rating is a starting point, not an investment signal.
To decide whether this fund suits your needs — risk tolerance, time horizon, goals — or whether another mid-cap fund is a better fit, you should use Value Research Fund Advisor. It evaluates your portfolio holistically and recommends funds that match your profile, not just the ones with the hottest recent performance.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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