Summary of this article
HDFC MidCap Fund achieves historic Rs 1 lakh crore AUM.
The scheme generated a 17.13% CAGR since its inception.
Fund utilizes a bottom-up strategy for robust stock picking.
Mutual funds remain an immensely popular way of investing in the stock market. Data released by the Association of Mutual Funds in India (Amfi) for the month of May showed that among the many categories of mutual funds, MidCap funds continued to witness growth in assets under management, with net AuM increasing to Rs 4,87,793.68 crore in May.
Amid the strong investor interest in the MidCap category, HDFC Asset Management Company has announced in a release that its HDFC MidCap Fund has entered its 20th year and crossed the Rs 1 lakh crore AuM milestone. The AMC also mentioned that the fund is one of the largest and oldest investment schemes operating within the mid-cap category in India. Notably, the category has 33 schemes in India and HDFC MidCap fund is the only scheme to have touched the Rs 1 lakh crore milestone.
How Has HDFC MidCap Fund Performed
When evaluating how the scheme has performed, the long-term track record of the scheme reveals that it has performed better than its benchmark. As of May 29, the scheme’s regular plan growth option has generated a compounded annual growth rate (CAGR) of 17.13 per cent since its inception. On the other hand, the scheme’s primary benchmark, the NIFTY Midcap 150 Index Total Returns Index (TRI) has delivered a CAGR of 15.04 per cent over the exact same period.
Assuming a monthly SIP of Rs 10,000 started at the fund's inception (totaling an investment of Rs 22.80 lakh), the capital would have grown to Rs 182.47 lakh as of May 29, 2026. This translates to an annualised SIP return of 19.01 per cent, outperforming the primary benchmark’s 17.64 per cent.
Over the course of 15 years an SIP investment of Rs 18 lakh in the scheme would have grown to Rs 88.26 Lakh, delivering a 19.11 per cent return against the benchmark's 18.92 per cent. Over the course of 10 years an investment of Rs 12 lakh through monthly SIPs would have grown to Rs 32.44 lakh indicating a return of 18.92 per cent, trailing the benchmark index return of 19.16 per cent.
However, the fund outperformed its index over the five year period, delivering an 18.31 per cent return against the benchmark's 17.67 per cent on an investment of Rs 6.00 lakh. In the last one year a Rs 1.20 lakh investment would have grown to Rs 1.23 Lakh, yielding a modest 4.08 per cent return while the benchmark stood at 10.03 per cent.
What Does HDFC MidCap Fund Invest In?
The HDFC Mid Cap Fund is an open-ended equity scheme and invests in mid-cap companies and tracks the NIFTY Midcap 150 Index Total Returns Index.
Midcap firms include businesses which have been established and are moving towards the next leg of their growth. As the economy expands, led by themes like rising consumption, manufacturing growth, formalisation, digitalisation, and increasing financialisation, many mid-cap companies are expected to benefit strongly.
However, prospective investors must note that the scheme has a "very high" risk profile as mid-sized companies often experience relatively sharper price volatility and greater liquidity constraints during market downturns compared to their large-cap peers.In order to mitigate these risks, the fund relies on a rigorous, bottom-up stock-picking strategy rather than betting on broad macroeconomic trends.
Commenting on the scheme entering its 20th year and reaching the Rs 1 lakh crore AuM milestone, Navneet Munot, the Managing Director and Chief Executive Officer of HDFC Asset Management Company, highlighted that the fund has navigated various market cycles and emerged stronger.
“As HDFC Mid Cap Fund enters its 20th year, having crossed Rs 1 lakh crore in AUM recently, it marks a milestone built on nearly two decades of disciplined investing through changing market conditions. The fund has navigated various market cycles and emerged stronger, remaining consistent in identifying quality businesses with long-term growth potential,” Munot said.
