1. Introduction
Mid-cap mutual funds are often the sweet spot for investors seeking growth — not as risky as small-cap, but offering more upside than large-cap. Among these, Nippon India Growth Mid Cap Fund has earned a reputation as a strong, long-term performer. Launched in the mid-1990s, it has been a go-to fund for investors willing to take on higher risk for potentially higher returns.
2. Fund History & Background
- Launch Date: The fund was allotted on October 08, 1995. Nippon India Mutual Fund+1
- Fund House: Managed by Nippon India Mutual Fund.
- Over nearly three decades, it has grown into one of the largest and most recognized mid-cap equity funds in India.
Its longevity provides a valuable advantage — a long track record through different market cycles, helping investors assess how it navigates volatility, downturns, and growth phases.
3. Investment Objective & Strategy
- The primary objective of the Nippon India Growth Mid Cap Fund is long-term capital appreciation by investing primarily in equity and equity-related securities. ICICI Direct
- According to its factsheet (as of July 31, 2025), the fund adopts a Growth-at-Reasonable-Price (GARP) style — aiming to buy growth companies that are not grossly overvalued. Nippon India Mutual Fund
- The fund is particularly focused on mid-cap companies which have potential to scale: it looks for mid-cap firms that can significantly improve their profitability and become “future leaders.” Nippon India Mutual Fund+1
- This bottom-up, research-driven approach — combined with valuation discipline — is its core investing philosophy.
4. Fund Management Team
- The current Fund Manager is Rupesh Patel, who has been managing this fund since January 2023. Nippon India Mutual Fund+1
- As per the factsheet, he has more than 26 years of experience in equity investing. Nippon India Mutual Fund
- Long-term experience and continuity in management can be beneficial, though one should also consider how performance evolves under the current manager’s regime.
5. Fund Size — Assets Under Management (AUM)
- As of July 31, 2025, the monthly average AUM of the fund was ₹38,820.39 crore, and the month-end AUM was ₹38,581.28 crore. Nippon India Mutual Fund
- According to ET / Economic Times, as of Nov 19, 2025, the AUM is ~₹ 41,267.69 crore. The Economic Times
- A large AUM indicates strong investor trust, but very high AUM can sometimes make future alpha generation more challenging due to liquidity constraints.
6. NAV & Expense Ratio
- NAV (Growth): According to ET, the NAV for the Growth option (Regular) is ₹ 4,281.00 as of Nov 19, 2025. The Economic Times
- Expense Ratio:
- Regular Plan: ~1.53% (or 1.54% per some sources) for regular plan. The Economic Times+1
- According to ETMoney, the expense ratio is ~1.54%. ET Money
- Exit Load: There is a 1% exit load if units are redeemed within 1 month. The Economic Times
- Minimum Investment: The minimum lump sum is ₹ 100, and minimum SIP is ₹ 100 as per ET. The Economic Times
7. Performance Analysis
7.1 Trailing Returns
Here are the recent trailing returns for this fund as per ETMoney (as on Nov 20, 2025): ET Money
| Period | Fund Return | Category Average |
|---|---|---|
| 1 Year | 8.77% | ~8.17% |
| 2 Years | 21.55% | ~19.04% |
| 3 Years | 26.20% | ~21.36% |
| 4 Years | 20.15% | ~16.14% |
| 5 Years | 27.47% | ~22.81% |
| 10 Years | 18.30% | ~15.13% |
These are strong returns, especially over the medium to long term, when compared to the category average.
7.2 CAGR Since Inception
RETURNS (NAV as on 20th November, 2025)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Nov-25 | 10037.30 | 0.37% | – | 0.65% | 26/31 |
| 1 Month | 20-Oct-25 | 10085.10 | 0.85% | – | 1.11% | 21/32 |
| 3 Month | 20-Aug-25 | 10189.40 | 1.89% | – | 2.39% | 17/31 |
| 6 Month | 20-May-25 | 10802.60 | 8.03% | – | 8.59% | 17/31 |
| YTD | 01-Jan-25 | 10480.20 | 4.80% | – | 3.39% | 9/30 |
| 1 Year | 19-Nov-24 | 10847.60 | 8.48% | 8.45% | 7.79% | 11/30 |
| 2 Year | 20-Nov-23 | 14781.60 | 47.82% | 21.55% | 20.01% | 11/30 |
| 3 Year | 18-Nov-22 | 20026.20 | 100.26% | 25.97% | 22.23% | 5/28 |
| 5 Year | 20-Nov-20 | 33675.10 | 236.75% | 27.47% | 23.90% | 3/25 |
| 10 Year | 20-Nov-15 | 53715.70 | 437.16% | 18.29% | 16.48% | 5/21 |
| Since Inception | 08-Oct-95 | 4282996.20 | 42729.96% | 22.27% | 18.09% | 7/32 |
- According to ICICI Direct, the since inception CAGR is ~22.27%. ICICI Direct
- ET (Economic Times) also mentions a long-term CAGR since inception being very high. The Economic Times
- According to Financial Express, over the last ~30 years, the fund has delivered a CAGR that allowed a ₹1 lakh lump sum to grow into around ₹ 4 crore. The Financial Express
7.3 SIP vs Lump Sum Performance
- Lump Sum (Long-Term): A lump sum investment of ₹1 lakh made at inception (1995) turning into ~₹4 crore in ~30 years. The Economic Times+1
- SIP Performance: According to Financial Express, SIP investors have reportedly earned a ~22.53% CAGR over 30 years under this fund. The Financial Express
These performance metrics illustrate the power of compounding and staying invested in a disciplined way.
8. Portfolio Composition
8.1 Market Cap Allocation
- As per ET, the fund has ~66.99% in mid-cap, 21.19% in large-cap, and 9.34% in small cap. ET Money
- From the Economic Times factsheet: ~73.76% weight (category “medium” market cap) which is in line with its mid-cap focus. The Economic Times
- According to its own investor fact sheet, 67% of its market cap allocation is mid-cap. Nippon India Mutual Fund
8.2 Sector Allocation
Based on ET data: The Economic Times
- Financials: ~19.72%
- Services: ~15.15%
- Healthcare: ~11.5%
- Capital Goods: ~10.42%
- Automobiles: ~10.22%
This shows diversified exposure across growth-sensitive sectors.
8.3 Top Holdings
| Stock Invested in | Sector | Value(Mn) | % of Total Holdings | 1M Change | 1Y Highest Holding | 1Y Lowest Holding | Quantity | 1M Change in Qty |
|---|---|---|---|---|---|---|---|---|
| Fortis Healthcare Ltd. | Hospital | 13854.2 | 3.36% | 0.02% | 3.36% (Oct 2025) | 2.53% (Nov 2024) | 1.35 Cr | 0.00 |
| BSE Ltd. | Exchange and data platform | 12642.9 | 3.06% | 0.41% | 3.77% (May 2025) | 2.56% (Nov 2024) | 51.00 L | 0.00 |
| Cholamandalam Financial Holdings Ltd. | Investment company | 10203.7 | 2.47% | -0.09% | 2.96% (Jun 2025) | 2.12% (Dec 2024) | 53.35 L | 0.00 |
| Au Small Finance Bank Ltd. | Other bank | 10117.4 | 2.45% | 0.31% | 2.45% (Oct 2025) | 1.3% (Nov 2024) | 1.15 Cr | 0.00 |
| Persistent Systems Ltd. | Computers – software & consulting | 9728.3 | 2.36% | 0.34% | 3.07% (Dec 2024) | 2.02% (Sep 2025) | 16.44 L | 0.00 |
| Federal Bank Ltd. | Private sector bank | 9701 | 2.35% | 0.34% | 2.44% (Nov 2024) | 2% (Aug 2025) | 4.10 Cr | 0.00 |
| Voltas Limited | Household appliances | 9560.7 | 2.32% | 0.11% | 2.54% (Dec 2024) | 1.98% (Jun 2025) | 69.10 L | 4.78 L |
| Max Financial Services Ltd. | Life insurance | 7887.2 | 1.91% | -0.13% | 2.15% (Jun 2025) | 1.61% (Dec 2024) | 51.00 L | 0.00 |
| Power Finance Corporation Ltd. | Financial institution | 7742.4 | 1.88% | -0.12% | 2.86% (Nov 2024) | 1.88% (Oct 2025) | 1.92 Cr | 0.00 |
| Ashok Leyland Ltd. | Commercial vehicles | 7337.5 | 1.78% | -0.10% | 1.88% (Sep 2025) | 1.21% (Nov 2024) | 5.18 Cr | 0.00 |
As per ETMoney (Oct 31, 2025): ET Money
Some of the top holdings are:
- Fortis Healthcare Ltd: ~3.36%
- BSE Ltd: ~3.06%
- Cholamandalam Financial Holdings Ltd: ~2.47%
- AU Small Finance Bank Ltd: ~2.45%
- Persistent Systems Ltd: ~2.36%
- Federal Bank: ~2.35%
- Voltas Ltd: ~2.32%
- Max Financial Services Ltd: ~1.91%
From another fact sheet: number of holdings is about 94. The Economic Times
9. Risk Metrics & Volatility
- Standard Deviation: According to Kotak-style fact sheets (or similar data), mid-cap funds like this typically have high standard deviations, but as per ICICI Direct they project very high risk. ICICI Direct
- Beta: The beta is not clearly listed in all sources, but given its mid-cap nature and market exposure, it likely has a beta greater than 1 (i.e., more volatile than the market).
- Sharpe Ratio: According to ICICI Direct, the Sharpe ratio is given, but their page seems to show “3.28” which might not be standard Sharpe definition — check if this is normalized or some other ratio. ICICI Direct
- Drawdowns / Volatility: Mid-cap funds are prone to more severe price swings vs large-cap funds; investors should be prepared for periodic volatility.
10. Suitability — Who Should Invest?
Ideal For:
- Investors with a long-term investment horizon (5–10+ years), who are looking for high-growth potential.
- Those who are comfortable with higher volatility and risk.
- Investors who can stay invested through market cycles, not panic at short-term dips.
- SIP investors: because of rupee-cost averaging and the fund’s long-term growth orientation, it’s very well-suited for systematic investing.
Not Ideal For:
- Investors with a very short-term goal (< 3 years) unless they are okay with risk.
- Conservative investors who prefer stable, low-risk returns.
- Investors who need regular income from their investments (this is an equity growth fund, not dividend/fixed-income oriented).
11. Pros & Cons
Pros:
- Long Track Record: In existence since 1995, offering ~30 years of data.
- Strong Long-Term Performance: Proven to deliver high CAGR over decades.
- Large AUM: Indicates trust and scale.
- GARP Strategy: Balances growth with reasonable valuation — not purely aggressive, which may control downside.
- Sectoral Diversification: Broad exposure across financials, services, healthcare, capital goods, etc.
- Highly Experienced Fund Manager: Current manager has long industry experience.
Cons:
- High Volatility: As a mid-cap fund, risk is relatively high.
- Expense Ratio: ~1.53–1.54% could erode returns if invested for short periods.
- Exit Load: 1% if redeemed within a month — not ideal for short-term cashing out.
- Large AUM Downsides: Very high AUM may limit the flexibility in buying very small, high-growth small-cap companies.
- Market Timing Risk: Performance may be very sensitive to mid-cap market cycles.
12. Comparison with Benchmark / Peers
- Benchmark: The fund uses NIFTY Midcap 150 TRI as its AMFI Tier-1 benchmark. Nippon India Mutual Fund
- Peer Comparison: Many mid-cap funds compete with index funds and active funds; however, the Nippon India Growth Mid Cap Fund stands out for its long history and consistency.
- Index vs Active Debate: Some investors prefer mid-cap index funds for low cost and diversification. But this fund’s active GARP strategy has historically helped it outperform, especially over the long run.
In Reddit discussions, investors compare this fund with mid-cap index funds, debating consistent outperformance vs cost and risk:
“Mid cap index funds vs NIPPON India Growth midcap fund” Reddit
“If you look at the Nippon fund’s journey for the last 20 years … It fell 63% in the 2008 crisis … and yet delivered the 22% CAGR over 30 years … Do you have the mindset to stay invested?” Reddit
13. Risk Factors / Challenges
- Market Risk: Mid-cap companies are more sensitive to economic cycles; downturns can hit hard.
- Liquidity Risk: Some mid-cap stocks may have less liquidity, especially during stressed markets.
- Valuation Risk: If mid-cap valuations are expensive, potential upside may be limited; growth stocks might correct heavily.
- Concentration Risk: Despite diversification, top holdings (or sectors) could disproportionately impact performance.
- Manager Risk: While Rupesh Patel is experienced, any change in philosophy or poor stock-picking could impact future returns.
- Regulatory Risk: Changes in regulations affecting mid-sized companies, capital markets, or tax policies could impact returns.
14. Investing Strategy (SIP, Lump Sum, Duration)
SIP (Systematic Investment Plan):
- Highly recommended — helps in averaging out volatility.
- Particularly effective in mid-cap funds, as mid-cap markets can swing strongly, and SIP mitigates timing risk.
Lump Sum:
- Suitable for those who have a long-term horizon (≥ 7-10 years).
- If investing lumpsum, be prepared for drawdowns; do not invest and immediately plan to redeem in short period.
Holding Period:
- Ideal: 5–10+ years.
- For very long-term investors: 10–30 years works well, given the compounding power and historical performance.
15. Real-World Wealth Creation Example
One of the most compelling stories of this fund is its performance over 30 years:
- According to Financial Express and other sources, a ₹ 1 lakh lump sum invested in 1995 would have grown to ~₹ 4 crore over ~30 years. The Financial Express
- This represents a compounded annual growth rate (CAGR) of over ~22%. The Economic Times
- Such historical performance highlights how staying invested for the long term, especially in a fund that compounds well, can generate enormous wealth.
This is not just theoretical — Reddit investors also note this:
“A 1L investment in the Nippon India Growth / Midcap Fund would have become a little over 4cr in 30 years … A CAGR of staggering 22% for 30 years.” Reddit
16. Tax Implications
- Equity Mutual Fund Taxation (India):
- If sold within 1 year: Short-term capital gains (STCG) tax applies (currently 15% for equity).
- If sold after 1 year: Long-term capital gains (LTCG) applies on gains above ₹1 lakh per financial year, taxed at 10% without indexation.
- Dividends: (If investor chooses dividend option) would be taxed in investor hands based on their tax slab.
- SIP Tax Efficiency: Because SIP invests gradually, gain on each lot will vary; it’s useful to track and plan redemption accordingly.
17. Investor Behaviour & Market Cycles
- Behavioral Discipline: The fund’s long-term power comes from staying invested. As some Reddit users note, many investors may not have the mindset to hold through big drawdowns. Reddit
- Cycle Navigation: Over its 30-year history, the fund has likely gone through major downturns: e.g., the 2008 financial crisis, corrections in mid-cap markets, etc., but still delivered compounding returns.
- Psychological Risk: Investors may panic during mid-cap crashes. Having a long-term view and not reacting to short-term noise is key.
- SIP Helps: SIP mitigates timing risk and helps in staying consistent.
18. Conclusion & Recommendation
Verdict:
Nippon India Growth Mid Cap Fund is a strong contender for long-term growth-focused investors. Its decades-long track record, well-defined GARP strategy, and disciplined portfolio make it one of the more reliable mid-cap funds, especially for those who can stomach volatility and are investing for 7+ years.
Recommended Strategy:
- Use it as a core mid-cap component in a diversified equity portfolio.
- Start with a SIP, especially if you are not investing a lumpsum.
- Maintain a long-term horizon (5–10 years or more) to really harness compounding.
- Review the fund annually — check its performance vs benchmark, portfolio changes, and manager commentary.
- Be prepared for volatility — don’t be shaken by 1-2 year underperformance.
19. References / Sources
Here are some of the main sources used for the data:
- ETMoney trailing returns & AUM data ET Money
- Economic Times factsheet (NAV, expense ratio, AUM) The Economic Times+1
- Nippon India investor factsheet (July 2025) Nippon India Mutual Fund
- Financial Express article on 30-year returns The Financial Express
- ICICI Direct data on returns, expense, risk ICICI Direct
- Reddit investor commentary (for behavioral insight)
Disclaimer
The information provided here is for informational purposes only and should not be considered as financial advice. Investments in mutual funds and other securities are subject to market risks. Past performance is not indicative of future results. Investors should consult with a certified financial advisor before making any investment decisions. The content does not constitute an offer or solicitation to buy or sell any financial instrument. Trendingadda.in is not responsible for any investment decisions made based on this information.
