JM Midcap Fund turns Rs 10,000 into Rs 19,590 in 3 years, delivers 25.7% CAGR matching midcap index

The JM Midcap Fund, which completed three years on November 21, 2025, has delivered a steady and disciplined performance through one of the most volatile market phases in recent years. Launched in November 2022, the fund entered a midcap space marked by sharp valuation swings, global macro uncertainty, commodity-price volatility and shifting monetary policy cycles. Despite these challenges, the scheme demonstrated strong resilience, a consistent strategy and a clear adherence to its research-driven GeeQ framework that emphasizes earnings growth visibility, quality of earnings and zero governance compromise.

Over the three-year period, the fund has grown significantly in size, with its AUM rising from Rs 92 crore at inception to Rs 1,477 crore by October 2025, reflecting nearly 16 times growth. This expansion has been supported by competitive returns. An investment of Rs 10,000 at launch grew to Rs 19,590, almost mirroring the benchmark Nifty Midcap 150 TRI, which grew to Rs 19,459 in the same period. The fund’s since-inception CAGR of 25.68 percent for the Regular Plan and 27.93 percent for the Direct Plan remains aligned with benchmark performance while maintaining its active, bottom-up approach.

One of the fund’s defining strengths has been its ability to maintain high upside capture with lower downside capture relative to peers, enabling better participation in rallies and improved cushioning during corrections. This consistency is further seen in its rolling return profile, where one- and two-year rolling returns remain largely comparable or superior to category averages.

Throughout this period, sector allocation has played a critical role. The fund maintained notable overweight positions in Industrials, Materials, Healthcare and Consumer Services, benefiting from government capital expenditure, manufacturing recovery, increased post-COVID healthcare spending and robust urban consumption trends. Meanwhile, exposures to Autos and Chemicals remained measured due to cyclical dynamics and tariff-related uncertainties. Adjustments during the volatile second half of 2024, including reducing export-oriented bets and increasing benchmark alignment, helped preserve stability during market drawdowns.

Overall, the JM Midcap Fund’s first three years reflect disciplined execution, strong research-led stock selection and effective risk management. By positioning itself for structural midcap growth while navigating tactical challenges, the scheme has delivered a stable and competitive long-term investor experience.

Peer watch: Best-Performing Midcap Funds

Midcap funds have continued to attract strong investor interest in 2024, supported by resilient corporate earnings, expanding sectoral breadth and steady domestic inflows. A review of fund performance across multiple time periods—one month, six months, one year, three years and five years—shows clear standouts that have consistently delivered superior returns.

In the one-month period, the Axis Nifty Midcap 50 Index Fund – Direct Plan emerged as the top performer with a 3.29% gain, significantly outpacing peers. The fund’s index-based approach ensured broad exposure to the fastest-growing midcap names, helping it lead the pack during a volatile month.

Over six months, the Helios Mid Cap Fund – Direct Plan delivered the strongest performance with a 14.17% return. The fund’s active management strategy, focused on quality midcap businesses with strong earnings visibility, allowed it to capitalize on the market’s rotational trends.

In the one-year category, the Quant Mid Cap Fund – Direct Plan took the top spot with an impressive 45.86% return. Quant’s rule-based investing approach and high-conviction portfolio construction have helped the fund maintain momentum even in periods of elevated volatility.

Across three years, the Edelweiss Mid Cap Fund – Direct Plan posted the highest return at 29.27% CAGR, reflecting strong stock selection and consistent exposure to midcap leaders across manufacturing, industrials and financial services.

In the five-year time frame, the Motilal Oswal Midcap Fund – Direct Plan delivered the best performance with a 31.22% CAGR, showcasing how long-term midcap investing rewards patience. The fund’s philosophy of owning scalable, capital-efficient companies has translated into sustained wealth creation.

Across all time periods, a common pattern emerges: funds that combine disciplined investment processes with strict risk control tend to outperform. Investors looking to build mid- to long-term wealth may benefit from allocating to high-quality midcap funds that demonstrate consistency across cycles rather than chasing short-term returns.

From the JM Midcap factsheet:

JM Midcap Fund (Regular Plan): 0.36%

JM Midcap Fund (Direct Plan): 1.96%

Peer Ranking (1-Year)

Nippon India Growth Fund – 53.17%

SBI Magnum Midcap Fund – 47.62%

Kotak Emerging Equity Fund – 46.42%

Top 3 Midcap Funds by Performance 

1-Month Returns 
1. Nippon India Growth Fund – 6.81 
2. Axis Midcap Fund – 5.92 
3. Kotak Emerging Equity Fund – 5.47

6-Month Returns 
1. SBI Magnum Midcap Fund – 21.88 
2. Kotak Emerging Equity Fund – 20.36 
3. Nippon India Growth Fund – 19.23

1-Year Returns 
1. Nippon India Growth Fund – 53.17 
2. SBI Magnum Midcap Fund – 47.62 
3. Kotak Emerging Equity Fund – 46.42

3-Year Returns 
1. Axis Midcap Fund – 25.39 
2. Kotak Emerging Equity Fund – 24.58 
3. SBI Magnum Midcap Fund – 23.71

5-Year Returns 
1. Axis Midcap Fund – 24.77 
2. Kotak Emerging Equity Fund– 22.81 
3. Nippon India Growth Fund – 22.48