HDFC Mid Cap Fund Delivers Stellar Returns, Outshines Peers

The HDFC Mid Cap Fund has established itself as a top performer in the Indian mutual fund industry. Over 15 years, it has been the highest-returning mid-cap fund, delivering approximately 17.81% annual returns on lump sum investments and 19.74% on SIPs. For instance, a Rs 1,00,000 lump sum investment made 15 years ago would now be worth approximately Rs 11.69 lakh, while a Rs 10,000 monthly SIP over the same period would have grown to over Rs 1.08 crore. The fund holds a 5-star rating from Value Research and boasts a substantial Assets Under Management (AUM) of Rs 89,384 crore as of October 31, 2025. Its investment strategy primarily focuses on mid-cap stocks (around 65-100%), with strategic allocations to small-cap, large-cap stocks, and debt instruments, employing a bottom-up approach. The fund is suitable for investors aiming for long-term capital appreciation and comfortable with its 'Very High' risk category. An exit load of 1% applies if units are redeemed within one year of investment.\n\nImpact:\nThis fund's strong performance could attract significant investor interest towards the mid-cap segment, potentially driving higher inflows into similar mutual fund schemes and positively influencing the overall market sentiment for mid-cap stocks. Rating: 7/10.\n\nDifficult Terms:\nAssets Under Management (AUM): The total market value of all the investments a fund manager manages on behalf of investors.\nScheme: An individual investment product offered by a mutual fund company.\nEquity Space: Refers to investments made in stocks or shares of companies.\nSIP (Systematic Investment Plan): A method of investing a fixed sum of money at regular intervals into a mutual fund scheme.\nLump Sum Investment: Investing a large amount of money at one time rather than in installments.\nNAV (Net Asset Value): The per-share market value of a mutual fund, calculated by dividing the total value of the fund's assets by the number of outstanding shares.\nExpense Ratio: The annual fee charged by a mutual fund to cover its operational costs, expressed as a percentage of the fund's assets.\nRiskometer: A visual indicator that helps investors understand the risk level associated with a mutual fund scheme.\nStandard Deviation: A measure of how spread out a fund's returns are from its average return, indicating its volatility.\nBeta: A measure of a fund's volatility relative to the overall market. A beta of less than 1 indicates lower volatility than the market.\nSharpe Ratio: A measure of risk-adjusted return, indicating how much excess return a fund has generated per unit of risk taken.\nCAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period, assuming profits are reinvested.\nBottom-up Approach: An investment strategy focusing on the evaluation of individual companies based on their fundamentals rather than broader market or economic trends.\nExit Load: A fee charged to an investor when they redeem their investment within a specified period after purchase, typically to discourage short-term trading.