MF Tracker: UTI Mid Cap Fund turns Rs 10,000 SIP to nearly Rs 1.62 crore in 2 decades
UTI Mid Cap Fund which completed a milestone of 20 years in the industry has turned a monthly SIP of Rs 10,000 to Rs 1.62 crore with an XIRR of 16.73%, an analysis by ETMutualFunds showed.
Launched on July 30, 2005, the scheme is given two star rating by both ValueResearch and Morningstar.
A monthly investment of Rs 10,000 made 10 years ago would have been Rs 28.49 lakh now with an XIRR of 16.52%. The mid cap fund would have turned the same investment to Rs 9.31 lakh in the last five years with an XIRR of 17.69%. And lastly, the value of the same monthly investment would have been Rs 4.55 lakh in the last three years with an XIRR of 15.96%.
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A lumpsum investment of Rs 1 lakh invested 20 years ago would have been Rs 18.97 lakh now with a CAGR of 15.85%. In the last 10 years, the value of the same Rs 1 lakh would have been Rs 3.63 lakh with a CAGR of 13.77%. In the last three years, the value of this would have been Rs 3.02 lakh with a CAGR of 24.74%. In the last three years, the current value of this investment would have Rs 1.63 lakh now with a CAGR of 17.75%.
Based on trailing returns, since inception the fund has offered 15.85% CAGR. In comparison to benchmark and category average, the fund has underperformed in the last three, five, and 10 years. In the last 10 years, the fund offered 13.85% CAGR against 18.05% by the benchmark (Nifty Midcap 150 - TRI) and 15.55% as the category average. In the last five years, the fund posted a return of 24.78% against 30.42% by the benchmark and 27.41% as the category average. The mid cap fund in the last three years, posted a return of 18.16% against 25.24% by the benchmark and 22.51% as the category average.
"UTI Mid Cap Fund emphasises on a balanced approach to portfolio construction investing in businesses with relatively long runway for growth along with turnaround or mean reversion opportunities that are potential alpha drivers. The Fund is suitable for investors looking to supplement their core equity portfolio with a high growth potential,' Vishal Chopda, Fund Manager- Equity at UTI AMC shared with ETMutualFunds.According to an expert, such long-term SIP success stories by a mid cap fund shows the potential of disciplined investing.'Such long-term SIP success stories in the mid-cap space highlight the potential of disciplined investing combined with a long investment horizon. Mid-cap funds generally benefit from investing in companies with scalable growth potential, and when held over a period of 15–20 years, they can generate substantial wealth despite interim market volatility,' Shruti Jain, Chief Strategy Officer at Arihant Capital Markets told ETMutualFunds.Being a mid cap fund, the fund holds 63.58% in mid caps, 20.09% in large cap, 22.99% in small caps, and 2.64% in others. Compared to the mid cap category, the fund is underweight on mid caps, large caps, and others whereas is overweight on small caps. The mid cap category on an average holds 65.68% in mid caps, 15.02% in large caps, and 5.64% in others whereas it holds 13.66% in small caps.In comparison to the mid cap category, the fund is overweight on equities and underweight on others. The fund holds 97.56% in equity and 2.44% in others whereas the mid cap category on an average holds 94.42% in equity, 5.40% in others and 0.18% in debt.
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With the fund also being underweight on mid caps compared to the category, is it the right time to choose mid cap funds and what strategy to follow now?Mid-cap funds are well-suited for SIP or STP investment strategies, especially in the current environment and with markets near all-time highs, staggered investments help reduce timing risk and allow investors to average their costs over time, Jain recommends.'This is a favourable time to consider mid-cap exposure with a 5–7 year horizon,' Jain further recommended.The PE and PBV ratio of the multi asset allocation fund were recorded at 58.15 times and 10 times respectively whereas the dividend yield ratio was recorded at 0.93 times as of June 2025.The fund had the highest allocation in finance of around 10.87% compared to 10.25% by the category. The scheme is overweight on IT, chemicals, capital goods, consumer durables, construction materials, and realty.ETMutualFunds analysed the other key ratios of the fund. Based on the last three years, the scheme has offered a Treynor ratio of 1.57 and an alpha of (0.37). The sortino ratio of the scheme was recorded at 0.64. The return due to net selectivity was recorded at (0.43) and return due to improper diversification was recorded at 0.06 in the last three years.The investment style of the fund is to invest in growth oriented mid cap stocks.An investor with a five to seven year investment horizon can also consider investing in mid cap funds provided they are comfortable with some short-term volatility and new investors should include mid-cap funds as part of a diversified portfolio, as they offer a good balance between risk and return over the medium to long term is what Jain recommends to the investors.Around 24 funds in the mid cap category have a track record of five years in the market including UTI Mid Cap Fund. Motilal Oswal Midcap Fund offered the highest return of 34.87% in the last five years, followed by HDFC Mid Cap Fund which gave 31.64% return in the same period. Quant Mid Cap Fund gave 30.09% return in the mentioned period. SBI Midcap Fund delivered a return of 27.36% in the last five years. DSP Midcap Fund has offered the lowest return of 20.92% in the similar time frame.
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Considering the performance of mid cap funds in the longer horizon of five years, Jain believes that the outlook for mid-cap funds remains positive and as India's economy continues to expand and more mid-sized businesses scale up, there are several growth opportunities in this segment. 'Investors with a long-term view and a disciplined approach through SIPs or STPs can benefit from the potential upside mid-caps offer,' she adds.UTI Mid Cap Fund is an open ended equity scheme predominantly investing in mid cap stocks. The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of mid cap companies.The fund is benchmarked against Nifty MidCap 150 TRI and is managed by Ankit Agarwal and Vishal Chopda. The fund had an AUM of Rs 12,224.27 crore. The total expense ratio of the regular plan is 1.75% whereas that of direct is 0.87%. One should always invest based on their risk appetite, investment horizon, and goals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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