HSBC Midcap Fund has emerged as the standout performer in the mid-cap category, delivering 20.70% annualised three-year SIP returns according to latest Value Research data. As per Mint, this performance places HSBC Midcap Fund at the top of a select group of funds that have consistently outperformed their benchmark and category averages. The fund has maintained its exceptional track record since its inception in August 2004, with a five-star rating from Value Research and a four-star rating from Morningstar. The scheme's remarkable performance demonstrates the fund's ability to identify strong mid-cap opportunities and deliver consistent returns to long-term investors.
According to Value Research data as of September 6, 2026, only four mid-cap funds delivered over 17% annualised three-year SIP returns, with HSBC Midcap Fund leading the pack at 20.70%. Invesco India Mid Cap Fund followed with 18.82%, while WhiteOak Capital Mid Cap Fund delivered 18.39% and ICICI Prudential Mid Cap Fund achieved 17.16%. The performance gap between the top four funds and the next tier was significant, with Bandhan Mid Cap Fund delivering 14.82%, followed by Edelweiss Mid Cap Fund at 14.58% and JM Mid Cap Fund at 14.53%. Several large funds by assets failed to match these returns, highlighting the importance of investment strategy over fund size.
Despite their substantial asset bases, several large mid-cap funds delivered disappointing returns compared to their smaller counterparts. As reported by Mint, HDFC Mid Cap Fund, the largest fund with ₹1,05,143 crore in net assets, managed only 12.45% returns. Kotak Mid Cap Fund, the second-largest with ₹69,283 crore, delivered 13.67% returns. Nippon India Growth Mid Cap Fund, with ₹50,751 crore in assets, returned 12.67%. Motilal Oswal Midcap Fund, despite having ₹40,036 crore in net assets, delivered 11.02% returns. This data demonstrates that fund size does not necessarily translate into higher recent returns, emphasizing the importance of investment strategy and portfolio construction over asset management.
HSBC Midcap Fund's exceptional performance extends beyond its recent three-year returns, with the fund delivering a remarkable 24.13% CAGR over three years since its inception in August 2004. According to Mint reports, a monthly SIP of ₹10,000 since the fund's inception would have grown to over ₹2 crore. The fund has consistently outperformed its benchmark and category across different investment horizons, with over the last three months delivering 8.01% compared with 3.91% from its benchmark and 6.53% from the category average. The fund's ability to generate 22.73% returns over one year compared with 9.97% for the benchmark and 9.59% for the category demonstrates its strong stock selection capabilities and risk management approach.
The mid-cap segment has experienced significant growth, with experts noting that it has risen by around 28% since April 2025 and by nearly 19% since the March 2026 correction. As reported by Mint, the fund manager's ability to identify stocks in sectors that performed strongly has supported recent returns, with the scheme delivering about 22.8% compared with roughly 9.6% for the Nifty Midcap 150, translating into an active return of nearly 13.2%. However, experts caution that recent outperformance should not automatically be extrapolated into the future, noting that mid-cap funds have benefited from the recent market rally. The data emphasizes that investors should consider investment strategy, portfolio construction, risk management, and performance consistency across market cycles when selecting mid-cap funds, rather than focusing solely on fund size or short-term performance metrics.
