Sundaram Mid Cap Fund Review: A consistent performer

Published: February 17, 2019 at 10:23 am

Last Updated on December 29, 2021 at 12:13 pm

This is a performance review of Sundaram Mid Cap Fund (previously Select Mid Cap Fund) one of the most consistent performers in the mid cap fund space. Since its launch in July 2002, it has grown to become to fourth place in terms of AUM (~ 5700 Crores) and is one of the few mid cap funds to have comfortably outperformed the Nifty Midcap TRI index (more on this in a separate post).

The main characteristics of the fund and its benchmark (S&P BSE Mid Cap) have remain unchanged after the SEBI categorization rules. However it used to define Midcap as the bottom 450 stocks of the NSE (rightfully including Nifty Next 50) but now it is the 101st to 250th stock (descending market capitalization). Readers may recall that I am running a SIP in this fund (not for myself though): Lessons from my SIP in Sundaram Select Midcap Fund. Like any mid cap fund, the journey was(is) a rough ride.

Sundaram Mid Cap Fund Review: A consistent performer

Sundaram Mid Cap Fund: Investment Philosophy

The fund uses what it calls the 5S approach along with growth at a reasonable price:

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
  1. Simple Business
  2. Scalable Opportunity
  3. Sound Management (promoter)
  4. Sustainable Competitive Advantages
  5. Steady & Sustainable Cash-Flows

The fund has the freedom to go overweight or underweight on sectors depending on its future outlook.

Morningstar risk and return rating

Investors can get a quick look at the risk and return rating of the fund at Morningstar.  Over the last 3,5 and 10 years we see that the fund has a higher upside capture (performance when index moves up)than the category but poor downside protection (tendency to fall less than the index). So existing and potential investors should keep in this mind. See the change in numbers when you change settings to 3Y and 5Y.

Sundaram Mid Cap Fund morning star risk and rating tab screenshot

Rolling returns and risk comparison with benchmarks and peers

We shall consider the return and risk performance of Sundaram Mid Cap fund with benchmarks and few peers. We present the 10Y and 5Y rolling return data along with rolling risk below. For rolling returns, we shall consider every possible 10Y or 5Y returns since inception of the fund. For rolling risk, we calculate the standard deviation of monthly returns over every possible 10Y or 5Y periods.

10Y duration

Sundaram Mid cap Fund 10 year rolling risk and return comparison with peers and indices
Sundaram Mid Cap has an impressive long-term record, comfortably outperforming mid cap indices, Franklin Prima and L & T. HDFC Mid Cap Opp has outperformed in its shorter history both in terms of risk and reward. Read more: HDFC Mid-Cap Opportunities Fund:  Performance Review

5Y duration

Sundaram Mid cap Fund 5 year rolling risk and return comparison with peers and indicesOver five years too, Sundaram Mid Cap has consistently beat Nifty Midcap 100 which is difficult to do. SeeWhy we badly need a Midcap & Smallcap Index Fund : Performance Comparison with Nifty Midcap 100 & Nifty Next 50. Over shorter durations, there is not much difference among peers although HDFC Mid cap continues to have lower volatility.

Summary: Should I invest in Sundaram Mid Cap Fund?

There is no reason for existing investors (at least older ones) to consider an exit as they should now be used to the funds volatility and reasonably happy with its performance. Newer investors must understand that this fund can test your patience and take time to deliver. So use it only for truly long-term goals.

This is a consistent performer in the mid cap space, but do not expect downside protection from it. When the index falls, this is likely to fall more and make up for it when the cycle reverses. So unless an investor has the right mindset to weather such storms, they should consider this fund. Although the point-to-point returns, look rosy, the journey is likely to be far from smooth.



Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Follow freefincal on WhatsApp Channel
Follow freefincal on WhatsApp
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Let's Get RICH With PATTU podcast on YouTube.
🔥Now Watch Let's Get Rich With Pattu தமிழில் (in Tamil)! 🔥
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter using the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both the boy and girl-version covers of "Chinchu Gets a superpower".
Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)