DSP Mid Cap Fund

DSP Mid Cap Fund has delivered strong long-term SIP returns, with 10Y XIRR of 16.65% and 12Y XIRR of 16.80%, though these trail the category average SIP XIRR of 19.41% and 18.82% respectively. Against the NIFTY MIDCAP 150, the fund has underperformed on lump-sum CAGR across most windows (e.g., 5Y fund CAGR of 13.40% vs benchmark 17.46%), with negative alpha in the 1Y, 5Y, 7Y, and 10Y periods. However, it has beaten the benchmark over 15 years (15.43% vs 15.39%) with positive alpha of 1.08%, indicating long-horizon competitive performance.

The fund exhibits a defensive risk profile with a beta of 0.85-0.93 across periods and nearly symmetric capture ratios (e.g., 10Y upside capture of 84.12% vs downside capture of 83.19%), meaning it falls slightly less than it rises relative to the benchmark. The maximum drawdown of -0.33% with a 32-day duration and 155-day recovery suggests the measured window captured a mild drawdown period, though 9 drawdown events exceeding 10% confirm mid-cap volatility risk. Calmar ratios between 0.51 and 0.66 across horizons indicate moderate risk-adjusted efficiency.

The portfolio holds 57 stocks with a well-diversified top 10 accounting for roughly 26.2% of NAV, led by Coforge (3.47%), IPCA Laboratories (3.11%), and Cholamandalam Investment and Finance (2.69%). Sector allocation is spread across Auto Components (11.1%), Industrial Products (8.7%), Finance (8.4%), Banks (8.0%), and Pharmaceuticals (5.9%), avoiding excessive concentration in any single sector. This balanced mix of IT, healthcare, financials, and manufacturing provides broad exposure to the mid-cap opportunity set.

The fund lags its category on SIP XIRR across all horizons, with the gap widest at 5Y (16.39% vs 19.38%) and 7Y (16.40% vs 19.29%). Calendar year returns show strong consistency in up-markets, including 39.30% in 2023 and 23.43% in 2024, but recent years have been weak with just 2.36% in 2025 and 6.26% in 2026. Its lower beta and downside capture suggest a relatively conservative stance within the mid-cap category, which has cost some upside in strong rallies.

This fund suits investors with a high risk tolerance and a horizon of at least 7-10 years, as mid-cap returns are volatile and the fund's edge has emerged mainly over very long periods. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, given its underperformance versus both category peers and the benchmark over medium horizons. SIP investors seeking steady long-term wealth creation with somewhat lower downside participation than the index may find it acceptable.

• Strong long-term SIP compounding with 10Y XIRR of 16.65% and 12Y XIRR of 16.80%
• Defensive profile with beta around 0.85-0.93 and downside capture consistently below 90%, limiting losses in market declines
• Well-diversified 57-stock portfolio with no single holding above 3.5% and balanced sector allocation
• Positive alpha over 15 years (1.08%) versus the NIFTY MIDCAP 150, showing long-horizon benchmark-beating capability

• SIP XIRR trails the category average across every horizon, with a gap of nearly 3 percentage points at 5Y and 7Y
• Negative alpha versus the NIFTY MIDCAP 150 in the 1Y (-0.62%), 5Y (-2.56%), 7Y (-1.26%), and 10Y (-0.32%) periods, indicating persistent benchmark underperformance in recent windows
• Weak recent calendar-year returns of 2.36% in 2025 and 6.26% in 2026 raise questions about current momentum