A midcap equity scheme turned many investors into crorepatis with a solid 24 per cent return, compounded annually, over the past 23 years. This Sundaram Mutual’s flagship equity scheme has just completed 23 years in India’s evolving capital markets. Launched in July 2002, this is Sundaram Midcap Fund.
For over more than two decades, the fund has demonstrated the power of compounding, with data showing a lump-sum investment of Rs 1 lakh made at inception would today be worth approximately Rs 1.40 crore, translating into a compound annual growth rate (CAGR) of 24.1 per cent.
Similarly, a monthly SIP of Rs 10,000 in the fund, which would have adding up to Rs 27.5 lakh over the 23-year period, would have grown to nearly Rs 4.71 crore, with an XIRR (extended internal rate of return) of 20.7 per cent.
“At the heart of the fund’s success is a consistent focus on businesses with scalable growth, passionate leadership, and strong financials. We aim to stay invested in companies that can outpace their industries through cycles,” said Bharath S, Head – Equities at Sundaram Mutual.
While the strategy has evolved to reflect the structural changes in India’s economy — particularly its ongoing formalisation and consolidation — the fund’s belief in early identification of high-potential midcaps has remained its cornerstone.
In a note, Sundaram Asset Management Company said a blend of near-term growth visibility and long-term structural tailwinds, supported by prudent position sizing, has helped the fund navigate volatility while continuing to generate alpha.
Risk management has been an integral part of the process. The fund actively monitors liquidity, stock-specific exposure, and overall portfolio concentration to manage downside risks, especially during periods of market stress. These controls have consistently safeguarded investor interests while maintaining performance integrity, it said.
Sundaram Asset Management Company had assets under management (AUM) of Rs 73,405 crore as of June 30, 2025. Including its subsidiary, Sundaram Alternate Assets Ltd (SAAL), the total AUM stood at Rs 80,463 crore, reflecting its presence in both traditional and alternative investment spaces.
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