Nippon India Growth Mid Cap Fund: Running with the bulls, holding the reins

Capturing midcap energy without losing control of the charge

Launched in October 1995, Nippon India Growth Mid Cap Fund ranked in the top 30th percentile of the midcap category in the Crisil Mutual Fund Ranking (CMFR) for three consecutive quarters through June 2025. 

The fund’s assets under management rose from ₹11,268 crore at the end of June 2022 to ₹39,066 crore by June 2025. Rupesh Patel has managed the fund since January 2023. 

The scheme aims for long-term capital appreciation through a portfolio primarily invested in the equity and equity-related securities of midcap companies. 

Leading the midcap pack 

Nippon India Growth Mid Cap Fund has outpaced the benchmark (Nifty Midcap 150 Total Return Index, or TRI) over one-, two-, three-, five-, and seven-year trailing periods. It has also outperformed peer funds in the midcap category (CMFR, June 2025) over one-, two-, three-, five-, seven-, and 10-year periods. 

To put this in perspective, a ₹10,000 investment in the fund on April 1, 2005 (benchmark inception) would have grown to ₹3.45 lakh by September 18, 2025 — an annualised return of 18.89 per cent. The same investment in the category and the benchmark would have reached ₹2.56 lakh (17.17 per cent) and ₹2.78 lakh (17.63 per cent), respectively.

 

A systematic investment plan (SIP) allows investors to contribute fixed amounts at regular intervals, promoting disciplined investing.

 

A monthly SIP of ₹10,000 in the fund over 10 years (totalling ₹12 lakh) would have grown to ₹36.9 lakh (21.39 per cent annualised). In comparison, the same SIP in the benchmark would have reached Rs 35.41 lakh (20.62 per cent) as of September 18, 2025. Overall, the fund has delivered higher returns than the benchmark across one-, three-, five-, seven-, and 10-year SIP periods.

 

How the fund allocates capital

 

Over the past three years, the fund maintained a higher allocation to midcap stocks, in line with its mandate.

 

Midcap stocks averaged 66.27 per cent of the portfolio, while largecaps and smallcaps accounted for 18.68 per cent and 12.48 per cent, respectively. By comparison, the category average was 14.25 per cent in largecaps, 67.12 per cent in midcaps, and 14.11 per cent in smallcaps. The fund’s slightly higher allocation to largecaps sets it apart from peers.

 

The portfolio spans 19 sectors. Financial services held the largest allocation (24.19 per cent), followed by capital goods (11.68 per cent), healthcare (10.92 per cent), consumer services (9.06 per cent), and automotive (auto) and auto components (6.34 per cent).

 

During the period under review, the fund invested in 150 stocks, holding 46 consistently. Key contributors included Power Finance Corporation, Cholamandalam Financial Holdings, Varun Beverages, and BSE.