8 Mid-Cap Funds Lag Index: Is Your SIP Wasting Money?

Eight actively managed mid-cap mutual funds are earning negative alpha — meaning they deliver worse returns than their benchmark index despite charging higher fees. If your SIP is in one of these, you may be paying more to earn less.

Here's what happened: At least 8 active mid-cap mutual funds currently show negative alpha, meaning returns fall short of their benchmark index consistently.. Negative alpha signals a fund manager is destroying value — you'd have done better simply tracking the index passively.. Active mid-cap funds typically charge 1.5–2% expense ratios, far higher than index funds charging 0.10–0.30%, making underperformance costlier..

What you should do: Check your mid-cap fund's alpha on platforms like MFCentral, Groww, or AMFI — a negative alpha over 3 years is a red flag.. Compare your fund's 3-year and 5-year returns against its benchmark (usually Nifty Midcap 150) on Value Research or Morningstar India.. Consider switching persistently underperforming funds to a Nifty Midcap 150 Index Fund after consulting a SEBI-registered financial adviser..

Alpha alone isn't enough — check rolling returns over 5 years. A fund with one bad year can look terrible on alpha but still be a strong long-term performer. Consistency matters more than a single snapshot.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.