Sundaram Midcap Fund clocks 24.1% CAGR over 23 years since its launch

A Rs 1 lakh investment in 2002 now worth Rs 1.4 crore; fund strategy credited for consistent long-term returns and risk-managed portfolio across market cycles

Sundaram Mutual Fund’s midcap scheme, Sundaram Midcap Fund, has completed 23 years, growing at a compounded annual growth rate (CAGR) of 24.10 per cent since its launch, the fund house said in a statement.

 

Sundaram Asset Management Company, a major player in the fund management space with a retail focus, had assets under management (AUM) of Rs 73,405 crore. Along with its subsidiary Sundaram Alternate Assets Ltd (SAAL), the AUM stood at Rs 80,463 crore as on 30 June 2025.

 

The statement said that over the 23-year period starting in July 2002, the fund has emerged as a strong compounder. A Rs 1 lakh investment at the time of launch would be worth approximately Rs 1.4 crore now, delivering a CAGR of 24.1 per cent. Similarly, a monthly systematic investment plan (SIP) of Rs 10,000, totalling Rs 27.5 lakh over the same period, would now be worth around Rs 4.71 crore with an extended internal rate of return (XIRR) of 20.7 per cent, it said.

 

 

“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, Sundaram Mutual.

 

Seen as one of the longest-running and most consistent midcap mutual fund schemes, it has managed to deliver sustained long-term performance by staying true to its core philosophy of bottom-up stock picking, strong valuation discipline, and risk-aware portfolio construction, the fund house said. 

 

Over the years, while the strategy has evolved to reflect India’s formalising and consolidating economy, the fund’s core belief in identifying high-growth midcap businesses early has remained unchanged. A balanced blend of near-term visibility and long-term structural levers — backed by appropriate position sizing — has been key to navigating volatility, it added.

 

“Risk controls remain a hallmark of the strategy, with active monitoring of liquidity, stock exposure limits, and portfolio concentration. This has helped the fund manage downside effectively during uncertain market conditions,” the statement said.

 

As of 30 June, the asset management business closed the year with assets under management of Rs 80,501 crore (over 80 per cent in equity), and consolidated profits from the asset management businesses stood at Rs 45 crore in Q1FY26, compared to Rs 29 crore in Q1FY25.

 

The company is part of Sundaram Finance, established in 1954. It has today grown into one of the most trusted and diversified financial services groups in India, providing financing for commercial vehicles, cars and utility vehicles, tractors and farm equipment, construction equipment, SME finance, and a range of working capital products for financing diesel, tyres, insurance, as well as working capital for SMEs. Through its subsidiaries and group companies, the company offers home finance, loans against property, mutual funds and investment management solutions, and the full range of general insurance products and services. It has a nationwide presence of over 700 branches, over 100,000 depositors, and over 500,000 lending customers.