Sundaram Midcap Fund Completes 23 Years, Delivers 24% CAGR Since Launch

Sundaram Mutual Fund’s flagship midcap scheme, Sundaram Midcap Fund, has completed 23 years, generating a compounded annual growth rate (CAGR) of 24.10 per cent since its launch in July 2002, the fund house said in a press release on July 30, 2025.

A one-time investment of Rs 1 lakh made at the launch of the fund would now be worth about Rs 1.4 crore. A monthly systematic investment plan (SIP) of Rs 10,000 over the same period, totalling Rs 27.5 lakh, would have compounded to nearly Rs 4.71 crore, giving an extended internal rate of return (XIRR) of 20.7 per cent.

“At the heart of the fund’s success is a consistent focus on businesses with scalable growth, passionate leadership, and strong financials. We aim to stay invested in companies that can outpace their industries through cycles,” said Bharath S, head – equities, Sundaram Asset Management Company (AMC).

Sundaram AMC has assets under management (AUM) of Rs 73,405 crore, as of June 30, 2025.

Who Sundaram Midcap Fund Is For?

The fund follows a bottom-up stock-picking strategy with a focus on strong valuation discipline, and risk-aware portfolio construction. The scheme is benchmarked against the Nifty MidCap 150 Total Return Index and invests predominantly in midcap companies.

The midcap fund has generated a CAGR of 25.80 per cent over the last three years, outperforming its benchmark, which yielded a CAGR of 25.06 per cent over the same period. During this three-year period, the fund generated an alpha of 3.79.

Alpha indicates how a fund has performed compared to its benchmark index. If alpha is 1, it means the stock has outperformed the benchmark by 1 per cent, and an alpha of -1 means it has underperformed by 1 per cent.  

The scheme is suitable for investors with a long-term horizon and higher risk appetite and are seeking exposure in midcap stocks, the fund house added. 

Sundaram Midcap Fund NAV, Expense Ratio, Portfolio

The Sundaram Midcap Fund’s size, as of July 29, 2025 is Rs 12,818 crore and offers a systematic investment plan (SIP) starting from Rs 100. The fund has an expense ratio of 0.93 per cent and has exposure in over 77 equities, predominantly from the mid-cap space. About 95.70 per cent of its AUM is deployed in equities, 1.90 per cent in debt instruments, and 2.20 per cent is kept in cash.

The fund applies an exit load of 1 per cent if redeemed within 365 days, for units more than 25 per cent of the investments. It currently has a net asset value (NAV) of 1,498.83.

Among the top five holdings of the fund are Cummins India, Coromandel International, Federal Bank, Kalyan Jewellers, and Mahindra & Mahindra Financial services, each having a weight between 2.43 per cent and 3.42 per cent.