This mutual fund has turned a ₹1 lakh lumpsum investment to ₹4 crore in 30 years

The Nippon India Growth Mid Cap Fund has completed 30 years since its launch on October 8, 1995. Over this period, the fund has delivered a compounded annual growth rate (CAGR) of 22.2%, according to data shared by the fund house.

This means that an investment of ₹1 lakh made at inception would be valued at over ₹4 crore now.

The fund, one of the oldest in the mid-cap category, has maintained a growth-oriented approach by investing in medium-sized companies with the potential for expansion.

Mid-cap funds generally aim to balance risk and return by investing in firms that fall between large and small-cap segments.

In the broader mid-cap space, several other schemes have also delivered strong returns. Funds from Edelweiss, Kotak, and Invesco Mutual Fund have generated annualised returns of around 17–19% over the past decade, as per available performance data.

Analysts note that such long-term performance highlights the role of sustained investment periods in generating higher returns from equity markets, though outcomes depend on market cycles and fund management strategy.

As of the latest portfolio update, the Nippon India Growth Mid Cap Fund has the largest allocation to the financial sector (around 25%), followed by consumer discretionary (17.47%) and industrials (17.03%). It also holds exposure to healthcare, technology, energy, and materials.

Mid-cap funds are typically suited for investors with long-term goals, as they can experience higher volatility compared to large-cap funds but also offer potential for higher capital appreciation. However, financial planners caution that investors should align such investments with their risk appetite and time horizon.