The Wealth Company Mid Cap Fund

The Wealth Company Mid Cap Fund has slightly outperformed the NIFTY MIDCAP 150 across all periods, with the 1Y fund CAGR of -9.21% ahead of the benchmark's -9.91%, though alpha remains negative at -1.76% over 1Y and around -1.0% to -1.2% over longer windows. Both the fund and benchmark show negative point-to-point CAGRs through 2026's weak market. SIP XIRR data is not available, so a like-for-like comparison to the category's strong SIP returns of 19-20% annually cannot be made.

The fund exhibits a beta of 0.85 against the NIFTY MIDCAP 150, indicating lower volatility than the index, and this is reflected in a downside capture of just 85.61%. Its maximum drawdown is only -0.12% over 58 days with a single drawdown event above 10%, suggesting mild loss behavior in the observed period. However, the low upside capture of 77.1% means the fund gives up participation in rallies, a key trade-off for its defensive profile.

The portfolio holds 45 stocks with its top position, Indian Hotels at 6.18%, and a top-10 concentration of roughly 42%, indicating reasonable diversification. Sector exposure is spread across Leisure Services (11.2%), Auto Components (9.8%), Pharma (9.1%), Consumer Durables (7.5%), and Insurance (7.4%). The presence of large caps like HDFC Bank (4.15%) alongside mid-cap names such as Dixon Technologies and Meesho adds a blended risk profile.

Direct SIP XIRR comparisons to the category average of 19.78% (3Y) are not possible due to missing XIRR data, which limits peer benchmarking. Against the NIFTY MIDCAP 150, the fund consistently edges out the index across 1Y to 15Y windows, but with negative alpha of roughly -1% to -1.2%, meaning it lags risk-adjusted expectations. Its below-1 beta and low downside capture position it as a relatively defensive mid-cap offering rather than an aggressive category performer.

This fund suits conservative investors seeking mid-cap exposure with lower volatility than the index, as evidenced by its 0.85 beta and 85.61% downside capture. A time horizon of at least 5-7 years is appropriate given mid-cap cyclicality and the current negative 1Y return of -9.21%. Investors should tolerate periods of underperformance versus the category, particularly since upside capture of 77.1% limits gains in strong markets.

• Consistently outperformed the NIFTY MIDCAP 150 benchmark across all periods from 1Y (-9.21% vs -9.91%) to 15Y (-0.64% vs -0.69%)
• Defensive risk profile with beta of 0.85 and downside capture of only 85.61%, cushioning losses in falling markets
• Well-diversified 45-stock portfolio with disciplined position sizing, topped by Indian Hotels at just 6.18%

• Negative alpha at every horizon (e.g., -1.76% over 1Y) indicates underperformance on a risk-adjusted basis
• Low upside capture of 77.1% means the fund materially lags in market rallies, limiting return potential
• SIP XIRR and rolling return data are unavailable, preventing transparent comparison to the category's 19-20% average SIP returns