Midcap and Smallcap Equity Funds Deliver Over 20% Returns; Medium to Long Duration Debt Funds Carry Higher Risks
Several midcap and smallcap equity mutual funds have delivered over 20% compounded annual growth rate (CAGR) across three, five, and seven-year periods, with notable performers including Edelweiss Mid Cap, Nippon India, HDFC, Invesco, and Quant funds. Separately, five small cap funds also reported over 20% annualized returns in the last three years. Meanwhile, medium to long duration debt funds carry higher risks due to sensitivity to interest rate changes, making them suitable primarily for investors with longer horizons and higher risk tolerance.