Nippon India Growth Midcap Fund: One of the greatest mutual fund wealth creators

Current market context

Market was very volatile since the first quarter of this calendar year, but the volatility has intensified over the past one month or so. Central banks hiking interest rates, surging global bond yields, high crude oil prices, weakening INR and FII sell-off have been major headwinds for equity market over the past month or so. Brent crude futures surged past $100 per barrel level. US Federal Reserve, European Central Bank and Bank of Japan hiked respective interest rates by 25 bps in September 2026. Surging bond yields and concerns about inflation due to high commodity tiggered risk-off sentiments and FII sell-off leading to sharp correction breaching through key sentimental support levels.

Valuations

The correction over past few months have moderated valuations to much more reasonable levels compared to September 2024 peak, especially in the midcap market segment. In current market conditions, midcap funds may provide attractive investment opportunities for investors with long investment horizon. In this article, we will review a midcap fund with legendary wealth creation credentials, Nippon India Growth Midcap Fund.

Source: NSE, Advisorkhoj Research, as on 30^th September 2026

Nippon India Growth Midcap Fund - Wealth creation track record

Nippon India Growth Midcap Fund has completed more than 30 years since its launch in 1995. A long-time favourite of retail investors, the wealth creation track record of this fund is legendary. In the last 31 years, Nippon India Growth Midcap Fund has seen many bull market and bear market cycles. However, the fund has rewarded disciplined investors who had long investment horizon. If you had invested Rs 1 lakh in the fund at the time of its launch, your investment would have multiplied 430X to a little over Rs 4.3 crores (see the chart below). The wealth created by Nippon India Growth Midcap Fund puts it in the league of funds, which has given blockbuster returns to investors over long investment horizon and firmly cements the status of this fund as one of the greatest wealth creators of all times, despite going through so many ups and downs in its chequered history.

Source: Advisorkhoj Research, as on 5^th October 2026

The SIP performance of the fund is spectacular. If you had invested Rs 10,000 every month in Nippon India Growth Midcap Fund since its inception, you could have accumulated a corpus of Rs 27.6 crores with a cumulative investment of just Rs 37 lakhs (see the chart below). The wealth creation through SIP by Nippon India Growth Midcap Fund is indeed a glowing testimony of the power of compounding through SIP over long investment horizon.

Source: Advisorkhoj Research, as on 5^th October 2026

The chart below shows the rolling 10 year SIP returns of Nippon India Growth Midcap Fund since the inception of the scheme. You can see that the fund has never given negative returns over 10 year SIP tenures; in fact, the fund gave double digit returns in most instances over 10 year SIP tenures. The average and median 10 year SIP XIRR of the fund was 23.4% and 18.8% respectively.

Source: Advisorkhoj Research, as on 5^th October 2026

The chart below shows the distribution of rolling 10 year SIP XIRR of Nippon India Growth Midcap Fund since its inception. You can see that the fund has almost always (98% of the instances) given double digit SIP XIRR for 10 year SIP tenure.

Source: Advisorkhoj Research, as on 5^th October 2026

Superior risk / return trade-off versus the benchmark across market conditions

The chart below shows the 5 year rolling returns of Nippon India Growth Midcap Fund versus its benchmark index (Nifty Midcap 150 TRI) over the last 25 years. The average 5 year rolling return of the fund was 21.71% versus 16.47% for the benchmark. The 5 year rolling returns distribution of the fund versus the benchmark shows that the fund has lesser percentage instances of negative returns and a higher percentage instances of 12%+ CAGR returns. Therefore, the fund provided superior risk / return trade-off relative to the benchmark index.

Source: Advisorkhoj Research, as on 5^th October 2026

Limited downside risks for investors

The chart below shows the drawdowns of the fund versus the benchmark index over the last 20 years. You can see that the fund was able to limit downside risks for the investors. The maximum drawdown of the scheme in last 20 years was -63%, while that of the benchmark was -73%.

Source: Advisorkhoj Research, as on 5^th October 2026

Strong performance consistency relative to peers

Most funds go through periods of underperformance, but Nippon India Growth Midcap Fund has always bounced back to outperform its peers. The fund was in top 2 quartiles 8 times in the last 10 years.

Source: Advisorkhoj Research, as on 5^th October 2026

Nippon India Growth Midcap Fund - Investment philosophy

Investment Strategy

Current portfolio positioning

Source: Nippon India MF Fund Factsheet, as of 31^st August 2026

Who can invest in Nippon India Growth Midcap Fund?

• Investors seeking capital appreciation or wealth creation over long investment tenures.


• Investors with very high-risk appetites.


• Investors with long (minimum 5 years) investment horizon.


• The fund is suitable for SIP investors.


• Lump sum investors can also invest in the fund if they have minimum 5-year investment horizon.

Investors should consult with their financial advisors or mutual fund distributors if Nippon India Growth Midcap Fund is suitable for their investment needs.