Best Large & Mid Cap Funds
About Large & Mid Cap Mutual Funds
Large & mid-cap mutual funds invest in a mix of large-cap and mid-cap companies. Large-cap companies are the largest companies in the market by market capitalisation, while mid-cap companies are relatively smaller but still established companies.
Large and mid cap mutual funds offer investors the potential to earn higher returns than large-cap funds alone, but they also come with more risk. Mid-cap companies are more volatile and can be more susceptible to economic downturns. However, they also have the potential to grow faster than large-cap companies over the long term.
Large & mid cap mutual funds aim to combine the strengths of both large-cap and mid-cap stocks. By investing in a mix of these stocks, these funds provide investors with diversification across companies of different sizes.
How Do Large & Mid Cap Funds Work?
Large and mid-cap funds typically allocate their assets between large and mid-cap companies based on a specific investment strategy. Some funds may invest more heavily in large-cap companies, while others may invest more heavily in mid-cap companies. However, these funds spread their funds across the said market caps to provide investors with exposure to a diversified portfolio, which can help reduce risk and optimise returns over the long term.
Features of Large & Mid Cap Mutual Funds
- Potential for competitive returns: By investing in companies of varying sizes, Large and Mid Cap funds have the potential to offer competitive returns over the long term, making them suitable for investors with a medium-term investment horizon.
- Risk and return: Large and mid-cap mutual funds offer the potential to earn higher returns than large-cap funds alone, but they also come with more risk. Mid-cap companies are more volatile and can be more susceptible to economic downturns.
- Transparency: Large and Mid Cap funds provide transparency regarding holdings and performance. Investors can easily access information about the fund’s portfolio and track its performance regularly.
Advantages of Investing in Large & Mid Cap Funds
- Diversification: Large and mid-cap mutual funds offer investors the opportunity to diversify their portfolios across a range of companies of different sizes. This can help to reduce risk and increase the potential for returns.
- Growth potential: Mid-cap companies have the potential to grow faster than large-cap companies over the long term. This can lead to higher returns for investors.
- Liquidity: Large and mid-cap mutual funds are generally liquid, meaning investors can easily sell their funds when needed.
Risks Involved in Large & Mid Cap Funds
Large & Mid Cap funds offer a balanced approach to investing by combining large-cap and mid-cap stocks. While they have several advantages, it’s crucial to be aware of the potential risks associated with these funds:
- Market risk: Like all equity-oriented funds, Large & Mid Cap funds are subject to market risk.
- Volatility: Mid-cap stocks, in particular, tend to be more volatile than large-cap stocks. This volatility can lead to more substantial price swings, impacting the fund’s overall performance.
- Company-specific risk: Investing in a mix of large-cap and mid-cap stocks exposes the fund to company-specific risks. For example, if a significant holding in the mid-cap segment underperforms, it can affect the fund’s returns.
- Sector concentration: The fund’s allocation to specific sectors can lead to concentration risk. If a particular sector faces challenges, it can impact the fund’s performance, especially if it has significant exposure to that sector.
- Liquidity risk: Some mid-cap stocks may have lower liquidity, which can impact the fund’s ability to buy or sell these stocks at favourable prices, especially when the fund experiences high redemption pressures.
Factors To Consider Before Investing in Large & Mid Cap Mutual Funds
- Investment objective and risk tolerance: Evaluate if your investment goals and risk tolerance are line with the scheme. Large and mid-cap funds are generally considered to be less risky than small-cap funds, but they are still riskier than debt funds.
- Investment horizon: Large and mid-cap funds are best suited for investors with a long-term investment horizon, typically at least 5 years. Therefore, you should only invest funds that you don’t require in the short term and medium term.
- Fund’s expense ratio: The expense ratio is the percentage of your investment that is deducted to cover the fund’s operating costs. Higher costs result in lower returns, and vice versa. But this should not be the only deciding factor.
- Asset allocation: Consider the fund’s asset allocation. Some funds may invest more heavily in large-cap stocks, while others may focus on mid-cap stocks.
Who Should Invest in Large & Mid Cap Mutual Funds?
Large and Mid Cap Funds can be a good investment for various investors, but they are especially well-suited for those who:
- Have a long-term investment horizon: Large and mid-cap funds can experience volatility in the short term, but they have historically outperformed other asset classes over the long term.
- Are willing to take on some risk: Large and mid-cap funds are riskier than other safe investment options but can offer higher returns.
- Are looking to diversify their portfolios: Large and mid-cap funds can help investors diversify their portfolios across different sectors of the economy.
- Have a moderate to high-risk tolerance: Large and mid-cap funds are not suitable for risk-averse investors.
Taxability of Large & Mid Cap Funds
Large & mid cap funds come under the equity-oriented funds category, which is taxed as per their holding period:
- Short-Term Capital Gains (STCG): If the holding period of the fund is less than a year, they are considered as STCG. These gains are taxed at 15%.
- Long-Term Capital Gains (LTCG): If the holding period of the fund is more than a year, they are considered as LTCG. If these gains are less than ₹1 lakh, they are tax-free. If they are more than ₹1 lakh, the gains are taxed at 10%.
How to Invest in Large & Mid Cap Funds?
Investing in Large & Mid Cap Funds funds through your Angel One account is a streamlined process that involves a few simple steps:
Step 1: Begin by logging in to your Angel One account using your registered mobile number. After logging in, validate the OTP (One-Time Password) for security purposes, and then enter your MPIN to access your account.
Please note that if you don’t have a Demat account with Angel One, you can open one quickly by completing the KYC (Know Your Customer) procedure and submitting the necessary documents.
Step 2: Once you’ve successfully logged in, it’s time to choose the most suitable mutual fund based on your financial needs and risk profile. You can evaluate various funds by navigating to the mutual fund section on the Angel One app. During this stage, consider the following factors:
- Search for the specific fund you wish to invest in or take recommendations from funds listed by Angel One across different categories.
- Analyse the fund’s historical performance, tax implications, constituent sectors, and the stocks it comprises.
- Utilise the provided calculator to estimate potential returns.
- Assess the level of risk associated with the fund and compare it to your risk tolerance.
- Check the fund’s ratings assigned by reputable rating agencies, typically on a scale from 1 to 5.
- Take note of the fund’s expense ratio, which provides insight into the cost of investing in it.
Step 3: After finalising the fund(s) you want to invest in, navigate to your Angel One account’s Mutual Funds section and search for your chosen fund. Since investing in mutual funds often involves a long-term commitment, exercise caution when selecting the fund(s) you intend to invest in. During this stage, consider the following:
- Decide whether you want to invest a lump sum amount or set up a monthly Systematic Investment Plan (SIP).
- Enter the investment amount you are comfortable with and choose your preferred payment method. UPI is the recommended mode, but you can also opt for net banking.
- After placing your order, you can establish a mandate for hassle-free future instalments if you’ve chosen the SIP investment route.
Top 10 Large & Mid Cap Mutual Funds to Invest in
| Fund Name | AUM ( in ₹ crores) | CAGR 3Y (%) | CAGR 5Y (%) | Expense Ratio (%) |
| HDFC Large and Mid Cap Fund | 23,988.97 | 21.26 | 24.26 | 0.88 |
| ICICI Pru Large & Mid Cap Fund | 17,694.45 | 20.93 | 24.21 | 0.81 |
| UTI Large & Mid Cap Fund | 4,134.14 | 22.12 | 23.93 | 1.01 |
| HSBC Large & Mid Cap Fund | 3,978.89 | 20.46 | 23.73 | 0.88 |
| Nippon India Vision Fund | 5,546.17 | 19.99 | 22.18 | 1.45 |
| Union Large & Midcap Fund | 847.32 | 14.74 | 22.03 | 0.94 |
| Bank of India Large & Mid Cap Equity Fund | 374.46 | 15.81 | 20.79 | 1.17 |
| Franklin India Equity Advantage Fund | 3,544.78 | 14.75 | 19.1 | 1.27 |
| Aditya Birla SL Equity Advantage Fund | 5,869.52 | 8.53 | 17.05 | 1.14 |
| Baroda BNP Paribas Large & Mid Cap Fund | 1,497.70 | 18.58 | __ | 0.82 |
Note: The listed top funds are for informational purposes only and not recommendations. Based on a 5-year CAGR as of January 6, 2025, these figures are subject to frequent changes. For real-time updates, visit Angel One.
HDFC Large and Mid Cap Fund
HDFC Large and Mid Cap Fund is one of the largest in its category, managing an AUM of ₹23,988.97 crore. The fund boasts a 3-year CAGR of 21.26% and a 5-year CAGR of 24.26%, demonstrating strong growth potential. With an expense ratio of 0.88%, it offers cost-effective management. The fund invests in a diversified portfolio of large and mid-cap stocks, focusing on businesses with strong fundamentals and growth opportunities.
ICICI Pru Large & Mid Cap Fund
ICICI Pru Large & Mid Cap Fund, with an AUM of ₹17,694.45 crore, delivers consistent returns with a 3-year CAGR of 20.93% and a 5-year CAGR of 24.21%. The fund has a low expense ratio of 0.81%, ensuring cost-effective management. It focuses on identifying opportunities in both large and mid-cap companies, aiming to achieve long-term capital growth.
UTI Large & Mid Cap Fund
UTI Large & Mid Cap Fund, with an AUM of ₹4,134.14 crore, focuses on a diversified portfolio of large and mid-cap stocks. It boasts an impressive 3-year CAGR of 22.12% and a 5-year CAGR of 23.93%, showcasing robust returns. The fund has a competitive expense ratio of 1.01%, making it cost-effective for investors. It seeks to achieve capital growth by investing in companies with strong fundamentals and growth potential.
HSBC Large & Mid Cap Fund
The HSBC Large & Mid Cap Fund has an AUM of ₹3,978.89 crore and focuses on large and mid-cap stocks. It has delivered a 3-year CAGR of 20.46% and a 5-year CAGR of 23.73%, reflecting consistent performance. The fund’s expense ratio of 0.88% makes it a competitive option for investors seeking value. It aims to capitalise on opportunities in undervalued companies with strong fundamentals, providing long-term growth.
Nippon India Vision Fund
The Nippon India Vision Fund, with an AUM of ₹5,546.17 crore, focuses on large and mid-cap equities. It has delivered a 3-year CAGR of 19.99% and a 5-year CAGR of 22.18%, showcasing strong long-term performance. The fund has an expense ratio of 1.45%, indicating its active management strategy.
It aims to provide capital growth by investing in companies with robust fundamentals and growth potential. This fund can be ideal for investors with a high-risk appetite seeking diversification and aiming to benefit from long-term wealth creation through exposure to both large and mid-sized companies.
Union Large & Midcap Fund
Union Large & Midcap Fund manages an AUM of ₹847.32 crore, delivering consistent returns with a 3-year CAGR of 14.74% and a 5-year CAGR of 22.03%. With an expense ratio of 0.94%, the fund offers a cost-efficient option for investors seeking capital appreciation. It invests in large and mid-cap companies, leveraging their growth potential and stability. This fund can be suitable for investors aiming to diversify their portfolio with a mix of established and emerging businesses, providing opportunities for long-term wealth creation while balancing risk.
Bank of India Large & Mid Cap Equity Fund
The Bank of India Large & Mid Cap Equity Fund manages an AUM of ₹374.46 crore and has a focus on large and mid-cap stocks. The fund’s 3-year CAGR stands at 15.81%, while its 5-year CAGR is 20.79%, reflecting impressive growth. With an expense ratio of 1.17%, it provides an affordable entry into a well-diversified portfolio. The fund aims to deliver capital appreciation by identifying opportunities in companies with strong growth potential.
Franklin India Equity Advantage Fund
Franklin India Equity Advantage Fund manages an AUM of ₹3,544.78 crore and targets large and mid-cap stocks. The fund has achieved a 3-year CAGR of 14.75% and a 5-year CAGR of 19.10%, reflecting consistent returns. With an expense ratio of 1.27%, it offers investors a cost-effective opportunity to invest in growth-oriented companies. The fund leverages a disciplined stock-picking approach, focusing on businesses with strong fundamentals.
Aditya Birla SL Equity Advantage Fund
Aditya Birla Sun Life Equity Advantage Fund manages an AUM of ₹5,869.52 crore and invests across large and mid-cap equities. The fund has delivered a 3-year CAGR of 8.53% and a 5-year CAGR of 17.05%, offering steady returns over the long term. With an expense ratio of 1.14%, the fund employs an active management strategy to identify growth-oriented opportunities. It focuses on delivering capital appreciation for investors with moderate risk tolerance.
Baroda BNP Paribas Large & Mid Cap Fund
Baroda BNP Paribas Large & Mid Cap Fund manages an AUM of ₹1,497.70 crore, delivering a 3-year CAGR of 18.58%. The fund focuses on large and mid-cap stocks and has an expense ratio of 0.82%, offering cost-efficient management. It aims to achieve capital appreciation by investing in growth-oriented companies with strong fundamentals.
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