Midcap SIPs overtakes largecap SIPs: What does Rs 10,000 a month investment look like across the two?

The rise of midcap SIPs tells us something interesting about how Indian investors are changing. Investors today seem more comfortable taking some additional equity risk in their portfolios in search of higher long-term growth. According to the AMFI-Crisil Factbook 2026, midcap funds had become the largest SIP category by March 2026, accounting for around 13 per cent of total SIP assets, while large-cap funds accounted for around 10 per cent. Five years earlier, in March 2021, largecap funds were actually the biggest SIP category with a 16 per cent share.

In absolute terms, midcap SIP assets increased from around Rs 51,627 crore in March 2021 to Rs 1.97 lakh crore in March 2026. Largecap SIP assets also grew, from Rs 68,206 crore to around Rs 1.51 lakh crore, but their share of the overall SIP pool declined.

According to Ajay Kumar Yadav, CFP, Group CEO & CIO, Wise Finserv, part of this shift can perhaps be explained by the wealth creation investors have seen in mid-caps over the last several years. But what does this really mean in rupee terms for somebody investing Rs 10,000 every month?

Let us look at a simple historical example:

(For large caps, we have used the Nifty 100 TRI, while for mid-caps we have used the Nifty Midcap 150 TRI. The illustration assumes a SIP of Rs 10,000 invested every month. The value of the investment is calculated as of 31 August 2026 and returns are calculated using the XIRR methodology.)

 “The difference becomes quite visible over longer periods. For example, an investor putting Rs 10,000 every month for 10 years would have invested Rs 12 lakh in total. Historically, this would have grown to approximately Rs 22.41 lakh in the Nifty 100 TRI and around Rs 33.02 lakh in the Nifty Midcap 150 TRI, as of 31 August 2026,” Kumar said.

That is a difference of approximately Rs 10.6 lakh, even though the monthly investment and total amount invested were exactly the same.

The corresponding 10-year SIP return works out to around 12 per cent annualised for the Nifty 100 TRI and 19.22 per cent for the Nifty Midcap 150 TRI. Over five years, the respective SIP returns were approximately 8.47 per cent and 17.68 per cent.

But investors should not read these numbers as a signal that mid-caps will always outperform large caps.

“Higher return potential comes with higher volatility. Mid-cap companies can see much sharper price movements when markets correct, liquidity tightens, or earnings expectations change. An investor who enjoys the upside also needs the temperament to sit through these periods of volatility,” he added.

Large caps therefore still play an important role. They generally represent established businesses with greater liquidity and relatively more stable earnings. They can provide the core of an equity portfolio, while mid-caps can add an additional growth component.

The biggest mistake is looking only at the last five or ten years of returns and moving aggressively into mid-caps. A SIP helps an investor average the purchase price across different market levels, but it does not remove market risk or valuation risk.

Discussion should not really be large-cap versus mid-cap

Both can have a place in an investor’s portfolio. Large caps can provide relative stability, while mid-caps can offer higher growth potential. The allocation between the two should ultimately depend on the investor’s time horizon, goals, overall asset allocation and ability to handle volatility.

Historical returns help us understand how different asset classes have behaved. They should not be assumed to repeat over the next five or ten years.

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