Large and mid-cap funds are open-ended mutual funds that invest in stocks of large-cap and mid-cap companies. According to the Securities and Exchange Board of India (SEBI), large-cap companies are those ranked from 1 to 100 on the basis of market capitalisation. Meanwhile, mid-cap companies are ranked from 101 to 250 on Indian stock exchanges. Here’s a list of the 15 best large and mid-cap funds with their complete details. Read on!
The table below presents the 15 best large and mid cap funds in India based on their 5-year returns:
|Large & Mid Cap Funds||Fund Details|
|Navi Large & Midcap Fund – Direct Plan – Growth||AUM: ₹242.92 crore|
Expense Ratio: 0.35%
|Quant Large and Mid Cap Fund – Direct Plan – Growth||AUM: ₹548.66 crore|
Expense Ratio: 0.56%
|Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth||AUM: ₹24,054.79 crore|
Expense Ratio: 0.69%
|Kotak Equity Opportunities Fund – Direct Plan – Growth||AUM: ₹11,555.33 crore|
Expense Ratio: 0.59%
|ICICI Prudential Large & Mid Cap Fund- Direct Plan – Growth||AUM: ₹6,210.34 crore|
Expense Ratio: 1.1%
|Edelweiss Large and Mid Cap Fund – Direct Plan – Growth||AUM: ₹1,671.64 crore|
Expense Ratio: 0.48%
|SBI Large & Midcap Fund – Direct Plan – Growth||AUM: ₹9,077.27 crore|
Expense Ratio: 1.04%
|Tata Large & Mid Cap Fund – Direct Plan – Appreciation||AUM: ₹3,705.0 crore|
Expense Ratio: 0.88%
|Canara Robeco Emerging Equities – Direct Plan – Growth||AUM: ₹15,499.66 crore|
Expense Ratio: 0.6%
|HDFC Large and Mid Cap Fund – Direct Plan – Growth||AUM: ₹7,865.66 crore|
Expense Ratio: 1.04%
|Sundaram Large and Mid Cap Fund – Direct Plan – Growth||AUM: ₹5,135.36 crore|
Expense Ratio: 0.71%
|Invesco India Growth Opportunities Fund – Direct Plan – Growth||AUM: ₹3,868.53 crore|
Expense Ratio: 0.66%
|DSP Equity Opportunities Fund – Direct Plan – Growth||AUM: ₹7,295.03 crore|
Expense Ratio: 0.95%
|LIC MF Large & Mid Cap Fund – Direct Plan – Growth||AUM: ₹1,917.84 crore|
Expense Ratio: 0.84%
|IDFC Core Equity Fund – Direct Plan – Growth||AUM: ₹2,470.9 crore|
Expense Ratio: 0.84%
Take a look at the details of each of the best-performing large and mid-cap funds in India:
One of the best large and mid-cap funds, Navi Large & Midcap Fund was launched on December 07, 2015. It primarily invests in mid-cap companies for medium to long-term capital appreciation. In terms of sectoral allocation, it invests 24.70% in the financial sector, 10.35% in healthcare, 9.78% in automobiles, 9.51% in technology, 9.32% in capital goods and 36.34% in others. Since this scheme was launched, it has generated 15.04% average annual returns.
This mutual fund was officially launched on January 07, 2013, and invests 99.05% in equities. When it comes to sectoral allocation, it invests 24.01% in financial sectors, 14.63% in consumer staples, 12.86% in energy, 12.01% in energy, 8.34% in services and the remaining portion in others.
This mutual fund was launched on January 01, 2013 and is considered to be one of the best large and mid-cap funds. 99.75% of its investments are in equities. This fund invests majorly in the financial sector followed by automobile, energy, technology and healthcare. The Mirae Asset Emerging Bluechip Fund has generated 21.83% average annual returns since its launch.
This open-ended mutual fund was launched on January 02, 2013, and invests 96.82% in equities. When it comes to sectoral allocation, Kotak Equity Opportunities Fund invests majorly in the financial sector, followed by capital goods, automobiles, energy, chemicals and others. The scheme has delivered 15.81% average annual returns since its launch.
Launched on January 01, 2013, this mutual fund has 96.65% investment in equities. It invests 52.45% in large cap stocks, 28.68% in mid cap stocks and 3.31% in small cap stocks. Sector-wise, the allocation of this fund is 31.29% in the financial sector, 11.44% in automobiles, 10.92% in energy, 8.13% in technology, 7.94% in healthcare and 30.28% in others.
Edelweiss Large and Mid Cap Fund is one of the best large and mid-cap funds launched on January 01, 2013. This fund has 96.78% of its investments in equities and 3.39% in debt securities. When it comes to sectoral allocation, it invests 28.79% in the financial sector, 8.38% in materials, 7.50% in capital goods, 7.37% in automobiles, 6.27% in technology and 41.69% in others. The minimum investment amount for SIPs allowed is ₹1,000.
SBI Large & Midcap Fund was launched on January 01, 2013, and has 95.46% investments in equity and 4.54% in others. When it comes to sectoral allocation, it has 19.68% investments in the financial sector, 10.33% in automobiles, 8.67% in healthcare, 7.19% in services and 6.71% in consumer staples. Let us take a look at its details:
This scheme was launched on January 02, 2013. Since it was launched, it has generated 15.64% average annual returns. In terms of sector-wise allocation, it has invested 27.27% in the financial sector, 9.36% in services, 8.10% in consumer staples, 7.08% in capital goods, 6.72% in energy and 41.47% in the rest.
This scheme was officially launched on January 02, 2013. It invests 30.92% in the financial sector, 9.34% in automobiles, 7.77% in services, 7.22% in healthcare, 6.88% in technology and 37.78% in others. This large and mid cap fund has delivered 19.95% average annual returns since its launch. Provided below are its details:
The HDFC Large and Mid Cap Fund was officially launched on January 02, 2013, and it invests 99.02% in equities. It invests 26.76% in the financial sector, 10.16% in services, 9.60% in automobiles, 9.43% in energy, 9.30% in technology and 34.75% in others. It has delivered 11.51% average annual returns since its launch, doubling an investor’s money every 3 years. Provided below are important details:
This large and mid cap mutual fund was launched on January 01, 2013, and invests 94.34% in equity and 5.66% in others. It invests in the financial sector, automobile, capital goods, technology, services and others. It is a medium-sized fund in its category and has generated 17.14% average annual returns since it was launched.
This mutual fund was launched on January 02, 2013, and invests 98.09% in equity and 1.91% in others. When it comes to sectoral allocation, this scheme has less exposure in the financial and automobile sectors than other funds compared to its category. Since its launch, this fund has been able to deliver 15.44% average annual returns.
This fund was introduced on January 01, 2013, and it aims to generate long-term capital appreciation and dividend income. It invests 98.86% in equities and 1.14% in others. It invests 32.51% in the financial sector, 9.96% in automobiles, 9.00% in technology, 8.17% in healthcare, 7.29% in energy and 33.07% in others. Since its launch, it has generated 15.35% average annual returns.
This scheme has made 95.07% investments in equity and 4.93% in others. If we look at its portfolio allocation, sector-wise, 24.94% has been invested in the financial sector, 10.25% in services, 9.04% in capital goods, 8.95% in technology, 7.46% in chemicals and 39.36% in others. The LIC MF Large and Mid Cap Fund was officially launched on February 25, 2015.
IDFC Core Equity Fund was launched on January 01, 2013, and since then, it has delivered 13.42% in average annual returns. This medium-sized fund of its category has 98.75% investments in equities, 0.01% in debt and 1.24% in others. It has exposure in the financial sector, automobiles, technology, healthcare, energy and others.
Expected return rate (p.a)
Time Period (Years)
Individuals with a long-term investment horizon might consider investing in these funds. Therefore, investors whose goals include financing their child’s education, building a retirement corpus, etc., can benefit from the returns generated from investing in these funds.
Generally, large and mid-cap funds are less volatile than mid-cap funds. This is because they invest in large-cap stocks, which generate more consistent returns.
Investing in equity requires adequate knowledge regarding stocks. Moreover, individuals need to track the market and analyse the stocks before making an investment. This can be quite challenging and time-consuming. As an alternative, they can invest in equity funds, such as large and mid-cap funds. These schemes are managed by fund managers who have many years of experience in the investment world. They take all the buy-and-sell decisions as per the market scenario.
Many individuals wish to invest in the equity market but cannot due to monetary constraints. In this regard, they can consider investing in mid-cap funds. This is because investors can get exposure to top stocks without having to part with a substantial amount of savings.
The step-by-step guide to investing in large and mid cap funds are as follows:
Since these funds are equity schemes, their taxation is similar to that of equity funds. Depending on the holding period, there are two types of taxes applicable on the returns generated:
If individuals sell the units before 1 year, they have to pay short-term capital gains tax at the rate of 15% plus 4% cess.
This tax is applicable when individuals sell their units after 1 year from the date of purchase. Investors need to pay 10% (plus 4% cess) tax on long-term capital gains. Note that LTCG tax is not applicable if the gains do not exceed Rs.1 lakh.
Since this fund invests in stocks across several large and mid-cap companies, one can expect a diversified portfolio. Due to this, the risks of losses decrease as the investment is spread out across large and mid-cap stocks belonging to different sectors.
By investing in large and mid-cap mutual funds, individuals can expect more financial stability than in mid-cap funds due to the underlying large-cap stocks. On the other hand, mid-cap organisations can grow over time and can potentially become large companies in the future. Accordingly, investors stand a chance to earn high returns owing to the mid-cap stocks in the portfolio.
That said, if investors are looking for equity exposure with lower risk, they can consider investing in large-cap funds, such as the Navi Large Cap Equity Fund from the Asset Management Company, Navi. By investing in this equity scheme, get exposure to the top 100 companies in India with regard to market capitalisation.
Being an equity-oriented fund, a large and mid-cap fund comes with a long-term investment horizon. Therefore, individuals with long-term financial goals might factor in this aspect of the instrument.
Large and mid-cap funds invest in equity and equity-related instruments. Due to this reason, these funds are associated with high financial risk. Hence, investors might want to evaluate their risk appetite before applying for this category of mutual funds.
Fund houses levy a fee on a yearly basis to cover the expenses incurred for running the fund. This annual charge is known as the expense ratio. It has an impact on the returns of a mutual fund scheme. Accordingly, one might consider going for a fund that comes with a lower expense ratio. Remember, this is not the only aspect. Make sure to consider other vital factors, such as the experience of a scheme’s fund manager, and past returns of the scheme before investing in large and mid-cap funds.
The best large and mid-cap funds provide you with a prudent mix of today’s market leaders and the potential leaders of the future. This combination enables investors to benefit from the growth potential of mid-caps and the stability of large caps. That said, make sure that the objective of the scheme is in line with your financial goals before investing.
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Ans: As per the Securities and Exchange Board of India (SEBI) rules, large and mid-cap funds must invest a minimum of 35% of the corpus in large-cap stocks and another 35% in mid-cap stocks. As per market capitalisation, large-cap stocks are the top 100 stocks, and the mid-cap stocks are the next 101-250 stocks in terms of market capitalisation.
Ans: No, individuals cannot claim tax deductions under Section 80C of the Income Tax Act, 1961 by investing in large and mid cap mutual fund schemes. Such deductions are only available if individuals invest in an ELSS fund.
Ans: No, there is no lock-in period for large and mid-cap funds. However, individuals might want to stay invested in these funds for a long time to obtain better returns. As these funds invest in large-cap and mid-cap growth stocks, one can expect stable returns along with long term capital growth. Therefore, individuals with long-term financial growth might benefit by investing in these funds.
Ans: A direct plan refers to mutual fund schemes that an asset management company offers to investors directly. In other words, no financial intermediary (broker/distributor) is involved in the transaction. Since no third-party agent is involved, fund houses do need to pay commission in case of direct plans.
Ans: Investors opt for a regular plan when they invest in mutual funds, including large and mid cap schemes via financial intermediaries. Fund houses need to pay commission to the third-party agents in case of regular plans. Accordingly, they have a higher expense ratio than direct plans.
Ans: Large cap funds invest in stocks of large cap companies. Similarly, mid-cap funds and small-cap funds invest in mid-cap and small-cap companies respectively. Large-cap companies have a market capitalisation of ₹20,000 crore or more. Mid-cap companies have a market cap between ₹5,000 crore and ₹20,000 crore while small cap companies have a market cap of less than ₹5,000 crore.
Ans: Listed below are the top five large and mid-cap funds:
1. Quant Large and Mid Cap Fund
2. Mirae Asset Emerging Bluechip Fund
3. Kotak Equity Opportunities Fund
4. ICICI Prudential Large and Mid Cap Fund
5. Edelweiss Large and Mid Cap Fund
Ans: Before you choose a large cap fund, assess your risk profile and understand your financial goals. Shortlist the large-cap funds most aligned with your investment goals and assess the risk and returns of each. Also, check the expense ratio of the schemes and choose a fund with a low expense ratio as it would help you maximise returns.
Ans: Large-cap stocks are associated with lesser risks than mid-cap and small-cap stocks. On the other hand, mid-cap stocks have more risks than large-cap, but fewer risks than small-cap stocks. If you invest in large and mid-cap funds, you will receive the benefits of stable returns generated by large-cap stocks and the potential of higher returns from mid-cap stocks.
Ans: The answer to this will depend on your own risk appetite, investment tenure and financial goals. As mentioned above, large cap stocks carry fewer risks than mid cap funds. But, mid cap funds can generate higher returns at a higher risk level. So, to get the benefit of both, you can consider investing in large and mid cap mutual funds.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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