Mid-cap SIPs deliver 17.4% XIRR in ten years, outperform peers

Mid-cap equity is the most favourable choice of segment for long-term Systematic Investment Plans (SIP), as it demonstrated a high likelihood of providing 8 to 10 per cent returns over longer time frames, a report said.

A 10-year monthly rolling return study of large-cap, mid-cap and small-cap SIP investments demonstrated strong and consistent returns in mid-cap investments, a report from asset management firm WhiteOak Capital said.

The Nifty Midcap 150 TRI delivered strong and consistent performance, with average and median returns of 17.4 per cent and 17.9 per cent, respectively. The index recorded 100 per cent positive outcomes over 10 years, with returns exceeding 10 per cent in 98 per cent of cases. It also gave above 12 per cent returns in 95 per cent of cases and above 15 per cent in 79 per cent of periods, the report said.

The report claimed that an investor starting a SIP in the mid-cap index and annually switching to the previous year’s top-performing index would achieve an XIRR (Extended Internal Rate of Return) of 15.24 per cent by September 30, 2025.