This Lesser-Known Mid Cap Fund Delivered 22.7% CAGR in 5 Years
This lesser-known mid cap mutual fund delivered a 22.7% CAGR over five years, outperforming several popular peers. Here's a closer look at its performance.
Investing in mid cap funds offers you the opportunity to benefit from the long-term potential of emerging companies. When choosing mid cap funds, you should ideally opt for well-managed, high-quality schemes that have shown reasonable growth across different market phases instead of chasing schemes with high returns. This is because mid cap funds can experience sharp declines during weak market periods.
Invesco India Midcap Fund is relatively lesser-known but process-driven mid-cap fund that has delivered superior risk-adjusted returns over the years and has stood strong besides its large-sized peers. Fund Overview Launched in April 2007, Invesco India Midcap Fund is a growth-oriented midcap-biased fund that focuses on investing in stocks of high-quality mid-sized companies. While the fund has seen its share of ups and downs, it has proved its ability to bounce back and deliver encouraging long-term performance.
Invesco India Midcap Fund is managed by Aditya Khemani since November 2023 who has around two decades of experience in the securities market. Invesco India Midcap Fund - Snapshot Inception Date19-Apr-07SI Return (CAGR)16.13%Corpus (bn)Rs 157Min. Lumpsum / SIPRs 100 / Rs 100Expense Ratio (Dir/Reg)0.78% / 1.88%Exit Load1% Source: ACE MF Investment Strategy Invesco India Midcap Fund focuses on carrying higher allocation towards growth-oriented companies that are trading at reasonable valuations.
It follows the 'bottom-up' approach with a 'top-down' overlay to stock picking with no style bias. The fund aims to identify companies with stable businesses models that are likely to do well over the long run. Invesco India Midcap Fund is benchmark agnostic and maintains a reasonably concentrated portfolio across diverse stocks In the last one year, the fund's portfolio turnover has ranged between 30% to 35% signifying low churning of the portfolio.
Historical Returns Invesco India Midcap Fund holds a robust long-term performance record and currently stands among the top performers in the category. Notably, the fund witnessed a muted growth between 2021 and 2023 which temporarily impacted its long-term returns. However, the fund has shown notable recovery from 2024 onwards. On a rolling 1-year and 3-year period, IIMF has generated a lead of 4-5.7% over the category average and around 3.6-5.5% over the Nifty Midcap 150 - TRI index.
The encouraging performance in recent years has boosted its long-term returns. Over the longer time frames of 5 years, IIMF has surpassed many of its peers and has registered robust growth compared to the benchmark. Even though the fund may trail the benchmark and the category average in the short run, it has proved its potential to bounce back strongly and cover the gap with superior performance in the long run.
Invesco India Midcap Fund - Historical Performance 1 Yr (%)3 Yr (%)5 Yr (%)Std DevSharpeSortinoInvesco India Midcap Fund12.1926.6522.7418.550.270.51Category Average7.8720.9419.316.490.190.37Nifty Midcap 150 - TRI8.5721.1620.1716.450.170.31 Source: ACE MF Risk Profile Invesco India Mid Cap Fund has displayed higher volatility than the category average and the benchmark, which could be due to its higher exposure to small caps.
Nonetheless, the superior performance in the recent past has helped the fund rank high in terms of risk-adjusted returns. Its Sharpe Ratio of 0.27 and Sortino ratio at 0.51 is ahead of the benchmark and the category average and indicates its ability to generate a decent premium for the level of risk taken. As of September 2026, the fund held 43 stocks with top holdings in Prestige Estates Projects (7.3%), Max Healthcare Institute (7.2%), Meesho (5.4%), The Federal Bank (5.4%), and Manipal Health Enterprises (4.4%).
The portfolio is dominated by pharma & healthcare stocks, forming 24.2% of its assets. Retailing, banking & finance, realty, and auto ancillaries, are among the other core sectors in its portfolio. The fund usually invests 60-65% of its assets in mid caps, along with 12-18% in large caps, and 15-25% in small caps. As of September 2026, the fund has an allocation of 61% in mid caps, 15.3% in large caps, and 17.9% in small caps.
Conclusion Invesco India Midcap Fund has demonstrated its ability to navigate market uncertainties by tapping into quality, high-growth opportunities and has performed consistently well across diverse market conditions. The focus on fundamentally sound quality names in the mid-cap domain, tactical diversification to large and small caps, and cautious stock picking has helped the fund reward its investors over the long run.
The fund is backed by experienced fund managers who maintain a well-diversified portfolio at all times without going overboard on a particular stock or sector, effectively reducing the downside risk. However, its performance may at times be in contrast to the midcap index and also its peers that hold significant exposure to momentum-driven mid-caps. # Table Note: Data as of October 21, 2026The securities quoted are for illustration only and are not recommendatoryPast performance is not an indicator for future returns.Returns are on a rolling basis and in %.
Direct Plan-Growth option.Those depicted over 1-Yr are compounded annualised.Risk ratios are calculated over a 3-year period assuming a risk-free rate of 6% p.a. Happy investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.
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