Do Mid-cap SIPs Really Achieve 17.4% XIRR Over 10 Years?
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Synopsis
A recent report reveals that mid-cap equity investments in SIPs can yield impressive returns, outperforming peers and offering a strong 17.4% XIRR over a decade. This comprehensive analysis by WhiteOak Capital underscores the importance of consistent, long-term investment strategies. Discover how to maximize your returns with mid-cap SIPs and the strategies that can help you achieve your financial goals.
Key Takeaways
- Mid-cap SIPs have proven to be a reliable investment choice over the long term.
- 17.4% XIRR is achievable with mid-cap investments.
- Investing consistently, even in small amounts, can lead to significant returns.
- Switching strategies may yield lower returns compared to remaining invested in mid-caps.
- Frequency of SIPs does not significantly impact overall returns.
New Delhi, Oct 23 (NationPress) Mid-cap equity stands out as the preferred segment for long-term Systematic Investment Plans (SIP), showcasing a strong potential to yield between 8 to 10 percent returns over extended periods, according to a report released on Thursday.
A comprehensive analysis of 10-year monthly rolling returns for large-cap, mid-cap, and small-cap SIP investments revealed that mid-cap investments consistently outperformed, as indicated by a report from asset management firm WhiteOak Capital.
The Nifty Midcap 150 TRI exhibited remarkable performance, achieving average and median returns of 17.4 percent and 17.9 percent, respectively.
This index recorded 100 percent positive outcomes over a decade, delivering returns exceeding 10 percent in 98 percent of instances, more than 12 percent in 95 percent, and above 15 percent in 79 percent of periods, as reported.
The analysis noted that an investor initiating a SIP in the mid-cap index and annually transitioning to the top-performing index from the previous year could achieve an XIRR (Extended Internal Rate of Return) of 15.24 percent by September 30, 2025. Conversely, staying invested in the mid-cap index would yield an XIRR of 17.30 percent within the same timeframe.
WhiteOak highlighted that over a decade, the consistent mid-cap strategy averaged a 17.43 percent XIRR, compared to 15.62 percent from the switching strategy.
While large-cap stocks tend to show lower volatility and offer portfolio stability, mid-cap stocks have outshone their peers in terms of returns across various durations.
The asset management firm found that the frequency of SIPs—whether daily, weekly, or monthly—had minimal long-term impact on returns.
“The primary takeaway from this analysis is to concentrate on making small, regular investments for the long haul,” it emphasized.
Point of View
I believe that the findings from WhiteOak Capital offer crucial insights for investors looking to navigate the stock market. The consistent performance of mid-cap SIPs emphasizes the importance of strategic, long-term investments. By focusing on mid-cap equities, investors can potentially achieve greater returns, reinforcing the necessity of informed decision-making in today's dynamic financial landscape.
NationPress
23/10/2025
Frequently Asked Questions
What are mid-cap SIPs?
Mid-cap SIPs refer to Systematic Investment Plans that focus on mid-cap stocks, which are companies with a market capitalization that falls between large-cap and small-cap stocks. They are known for potential high growth.
What is the average return of mid-cap SIPs?
According to recent reports, mid-cap SIPs have shown an average return of around 17.4% XIRR over a 10-year period.
How does SIP frequency impact returns?
The analysis from WhiteOak Capital indicates that the frequency of SIP investments—whether daily, weekly, or monthly—has minimal long-term impact on overall returns.
Why should investors consider mid-cap stocks?
Mid-cap stocks have historically outperformed their peers in terms of returns, making them an attractive option for long-term investors seeking growth.
What is the significance of the report from WhiteOak Capital?
The report outlines the strong performance of mid-cap SIPs, providing valuable insights for investors about the potential benefits of long-term investment strategies.
