Large vs mid vs small-cap mutual funds: Which is best for long-term SIP? 10-year rolling returns from 1996–2026 compared
If you are confused about whether to start a systematic investment plan (SIP) in large-cap, mid-cap, or small-cap mutual funds, a 30-year historical study of market performance may offer some perspective.
A latest SIP analysis report by WhiteOak Capital Mutual Fund compares the performance of the Nifty 100 TRI, Nifty Midcap 150 TRI and Nifty Smallcap 250 TRI from August 1996 to October 2026.
These indices represent the benchmarks for large-cap, mid-cap, and small-cap funds, respectively. Their historical returns can help investors compare the performance of the three market-cap categories. Here's which category emerged as the winner and what the findings indicate for investors.
The study compares the 10-year monthly rolling returns (XIRR) of three benchmark indices from August 1996 to October 2026, with the first observation recorded on 1 April 2015.
Rolling returns calculate annualised returns for successive 10-year investment periods, shifting the starting date by one month each time. For example, returns for an investment started in April 2015 are compared with those for an investment started in May 2015, and so on.
This helps investors assess consistency across different market cycles rather than relying on returns from a single starting date.
| Return parameter | Large-cap (Nifty 100 TRI) | Mid-cap (Nifty Midcap 150 TRI) | Small-cap (Nifty Smallcap 250 TRI) |
| Average return | 13.00% | 17.62% | 15.02% |
| Median return | 13.35% | 18.33% | 15.62% |
| Minimum return | 4.26% | 5.93% | -0.46% |
| Maximum return | 17.05% | 23.58% | 22.38% |
| % Times Positive Return | 100% | 100% | 99% |
| % Times more than 10% Return | 94% | 98% | 88% |
|
% Times more than 12% Return |
72% | 96% | 80% |
|
% Times more than 15% Return |
14% | 81% | 58% |
*Source: WhiteOak Capital Mutual Fund
Mid-caps emerged as the strongest performers, delivering the highest average return of 17.62%, compared with 15.02% for small-caps and 13% for large-caps.
The median return also favoured mid-caps at 18.33%. While average return represents the overall mean of all observations, median return is the middle value when returns are arranged from lowest to highest.
This indicates that mid-caps performed better not just on average but also across the typical 10-year investment period.
Mid-caps also led in the frequency of higher returns. They generated returns exceeding 15% in 81% of the observed periods, compared with 58% for small-caps and just 14% for large-caps.
Mid-caps recorded the highest maximum return of 23.58%, followed by small-caps at 22.38% and large-caps at 17.05%.
However, small-caps recorded the weakest minimum return at -0.46%. Mid-caps recorded the highest minimum return at 5.93%, followed by large-caps at 4.26%.
Both large-cap and mid-cap indices delivered positive returns in 100% of the observed 10-year rolling periods. Small-caps delivered positive returns in 99% of these periods.
The study suggests that mid-cap funds historically offered a compelling combination of higher average returns and consistency over 10-year investment periods.
“Among the three market cap segments, the mid-cap segment was a good investment option for investors seeking to invest via the long-term SIP route,” White Oak study noted.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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