Long-term wealth creation requires careful and disciplined planning. Including equity mutual funds in your investment portfolio can be a great option to grow your wealth over the long run. Equity mutual funds offer numerous benefits such as higher growth potential, diversification, convenience, flexibility, professional fund management, and tax efficiency. You can choose to invest a lumpsum amount or a fixed amount monthly through a systematic investment plan in a mutual fund scheme.
There are various types of equity mutual funds available which you can choose based on your return expectation and risk profile. This includes large-cap funds, medium-cap funds, small-cap funds, multi-cap funds, large and mid-cap funds, etc. For example, if your risk tolerance is high, you can choose to invest in small-cap funds. If you have moderate risk tolerance and you seek a balance of stability and growth, large-cap funds and large & mid-cap funds are suitable options for investment.
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What is a Large & Mid Cap Fund?
Large & mid-cap funds are a type of equity mutual funds that invest in both large-cap and mid-cap stocks. These funds aim to provide a blend of stability and growth by combining the characteristics of both large-cap and mid-cap stocks. These funds aim to balance the lower risk associated with large-cap stocks and the higher growth potential (with increased risk) of mid-cap stocks, which makes them suitable for investors seeking moderate risk and growth. Let us look at some of the best large & midcap funds.
Top Five Large & Mid Cap Funds in 2024
| Scheme Name | Returns | Expense Ratio | |||
| Since Inception | 1-year | 3-year | 5-year | ||
| ICICI Pru Large & Midcap Fund-Direct-Growth | 17.16% | 48.93% | 27.16% | 23.74% | 0.85% |
| Axis Growth Opportunities Fund-Direct-Growth | 23.73% | 40.28% | 20.74% | 24.68% | 0.59% |
| HDFC Large & Midcap Fund-Direct-Growth | 15.19% | 50.63% | 26.46% | 23.94% | 0.82% |
| Kotak Equity Opportunities Fund-Direct-Growth | 18.98% | 49.38% | 24.36% | 23.84% | 0.52% |
| Mirae Asset Large & Midcap Fund-Direct-Growth | 23.63% | 41.85% | 19.03% | 22.82% | 0.62% |
- ICICI Pru Large & Midcap Fund-Direct-Growth
ICICI Pru Large & Midcap Fund has been known to be the best in the category for generating consistent returns since its inception in 2013. This open-ended fund has assets under the management of INR 13,420 Cr as of 31st May 2024 and the current net asset value (NAV) is INR 1012.95. The percentage asset allocation as of 31st May 2024 into large-cap, mid-cap, and small-cap equities is 49.65%, 38.20%, and 6.13% respectively. Financial, Energy, Automobile, and Healthcare are the focus sectors of this fund.
- Axis Growth Opportunities Fund-Direct-Growth
Axis Growth Opportunities Fund is known for offering the best volatility protection among other funds in the category. The return generated by the fund also has been consistent over the years. This fund has assets under the management of INR 12,424 Cr as of 31st May 2024 and the current net asset value (NAV) is INR 33.50. The percentage asset allocation as of 31st May 2024 into large-cap, mid-cap, and small-cap equities is 48.33%, 43.44%, and 5.32% respectively. Financial, Capital goods, Services, and Healthcare are the focus sectors of this fund.
- HDFC Large & Midcap Fund-Direct-Growth
HDFC Large & Midcap Fund is one of the best in the category and has generated consistently good returns in the last five years. This fund has assets under the management of INR 19,454 Cr as of 31st May 2024 and the current net asset value (NAV) is INR 339.56. The percentage asset allocation as of 31st May 2024 into large-cap, mid-cap, and small-cap equities is 50.55%, 36.16%, and 10.35% respectively. Financial, Healthcare, Automobile, and Energy are the focus sectors of this fund. Some of the top holdings in the fund’s portfolio are HDFC Bank Ltd., ICICI Bank Ltd., and Axis Bank Ltd.
- Kotak Equity Opportunities Fund-Direct-Growth
Kotak Equity Opportunities Fund is known for providing better protection against volatility and generating consistently higher returns in the last 10 years. This fund has assets under the management of INR 22,329 Cr as of 31st May 2024 and the current net asset value (NAV) is INR 376.65. The percentage asset allocation as of 31st May 2024 into large-cap, mid-cap, and small-cap equities is 52.08%, 41.90%, and 5.19% respectively. Financial, Capital goods, Automobile, and Energy are the focus sectors of this fund.
- Mirae Asset Large & Midcap Fund-Direct-Growth
Mirae Asset Large & Midcap Fund has consistently generated the highest return in the past ten years. This open-ended fund has assets under the management of INR 35,273 Cr as of 31st May 2024 and the current net asset value (NAV) is INR 160.26. The percentage asset allocation as of 31st May 2024 into large-cap, mid-cap, and small-cap equities is 52.14%, 37.03%, and 9.94% respectively. Financial, Healthcare, Energy, and Automobile are the focus sectors of this fund.
Conclusion
To conclude, large & mid-cap mutual funds offer a balanced approach to investing, combining the stability of large-cap stocks with the growth potential of mid-cap stocks. They are a versatile investment option suitable for investors looking for moderate risk and the potential for both steady income and capital appreciation. It is important to consider various factors and choose the best scheme that suits your risk appetite and investment objective.