The Nifty Midcap 150 TRI delivered strong and consistent performance, with average and median returns of 17.4 per cent and 17.9 per cent, respectively. The index recorded 100 per cent positive outcomes over 10 years, with returns exceeding 10 per cent in 98 per cent of cases. It also gave above 12 per cent returns in 95 per cent of cases and above 15 per cent in 79 per cent of periods, the report said.
The report claimed that an investor starting a SIP in the mid-cap index and annually switching to the previous year's top-performing index would achieve an XIRR (Extended Internal Rate of Return) of 15.24 per cent by September 30, 2025. In contrast, remaining invested in the mid-cap index would yield an XIRR of 17.30 per cent over the same timeframe.
WhiteOak reported that over a 10-year period, the continued mid-cap approach averaged a 17.43 per cent XIRR, compared to 15.62 per cent for the switching strategy, the asset management firm said. WhiteOak Capital mentioned that large-cap stocks generally exhibit lower volatility and provide portfolio stability, but mid-cap stocks outperformed peers in terms of returns over different time periods.
The analysis by the asset management firm found that SIP frequency — daily, weekly, or monthly — had little long-term impact on the returns. "The key takeaway from the analysis is to focus on investing a small amount regularly for the long term," it noted.
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