Sundaram Midcap Fund completes 23 years with strong long-term returns for investors

Sundaram Mutual

Sundaram Mutual celebrated the 23rd anniversary of its flagship equity fund — Sundaram Midcap Fund, one of India’s oldest and most successful midcap mutual funds, today. Launched in July 2002, the fund has built a solid reputation for delivering strong long-term returns - by focusing exclusively on quality mid-sized companies.

The fund follows a bottom-up investment approach - which means that it selects individual companies based on their strengths rather than betting its decision on broader market trends. It also sticks to a strict valuation strategy and takes care to manage risks well, which has helped it stand out over the years.

Over the unit's 23-year journey, the fund has become a powerful wealth-builder. A ₹1 lakh lump-sum investment made at launch would be worth around ₹1.4 crore today - marking a compound annual growth rate (CAGR) of 24.1%.

If an investor had chosen to invest ₹10,000 every month through a SIP over the same period (totaling ₹27.5 lakh), that investment would now be worth about ₹4.71 crore, with an XIRR of 20.7%.

“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 Mr. Bharath S, Head – Equities, Sundaram Mutual.

While the fund’s strategy has adjusted over the years to reflect changes in the Indian economy — such as increasing formalisation and industry consolidation — its core belief remains the same: spotting high-growth midcap companies early and sticking with them for the long haul.

The team also puts a lot of emphasis on risk management. They actively track things like how easy it is to buy and sell a stock (liquidity), how much they invest in any one company, and how concentrated the portfolio is. This has helped the fund hold up better during volatile markets.

As it enters its 24th year, the Sundaram Midcap Fund continues to be a trusted choice for long-term investors looking to benefit from India’s midcap growth story.

Disclaimer: No Moneycontrol journalists were involved in publishing this article