What are ‘Large and Midcap’ Funds?
Large and midcap funds are open-ended equity mutual funds, which have to invest at least 35% of their total assets in both large cap and midcap companies. According to the SEBI regulations, large cap companies are those ranked 1st-100th in terms of full market capitalisation whereas mid cap companies are those ranked from 101st to 250th in terms of full market capitalisation.
Why Invest in ‘Large & Midcap’ Funds?
- Ideal fund category for those seeking growth with stability
- Exposure to large cap stocks offers stability and reduces volatility
- Exposure to midcap stocks enhances growth prospects
- Blended portfolios may give relatively superior risk-adjusted performance than large cap funds and midcap funds
- Can strengthen the core of your equity portfolio to help to achieve long term financial goals
Table of Best ‘Large and Midcap’ Funds:
| Fund Name | Returns (% p.a.) | |||
| 1 year | 3 year | 5 year | 10 year | |
| Motilal Oswal Large and Midcap Fund | -5.90 | 23.38 | 23.43 | – |
| Invesco India Large & Mid Cap Fund | 2.11 | 22.49 | 20.45 | 16.49 |
| Bandhan Large & Mid Cap Fund | 2.79 | 22.10 | 22.11 | 16.59 |
| UTI Large & Mid Cap Fund | 1.55 | 20.81 | 22.08 | 14.96 |
| ICICI Prudential Large & Mid Cap Fund | 7.89 | 20.10 | 23.16 | 16.65 |
| Nippon India Vision Large & Mid Cap Fund | 0.54 | 19.68 | 20.09 | 13.83 |
| DSP Large & Mid Cap Fund | 1.35 | 19.22 | 19.38 | 16.02 |
| HSBC Large & Midcap Fund | -7.43 | 18.93 | 18.31 | – |
| HDFC Large and Mid Cap Fund | 0.98 | 18.84 | 21.86 | 15.43 |
| Axis Large & Mid Cap Fund | -0.39 | 18.30 | 18.17 | – |
Data as on December 11, 2025
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Risks of Investing in ‘Large and Midcap’ Funds
- Compulsory exposure of 35% of the total asset in midcap companies across all market conditions makes it riskier than large cap and flexi cap funds
- Lacks the flexibility of flexi cap funds to freely change their exposure across market capitalisations according to changing market conditions
Who Should Invest in Large and Midcap Funds
- Investors seeking superior risk-adjusted returns than large cap funds and midcap funds
- Ideal for those seeking growth with stability
- Also suitable for those seeking exposure to both large and midcap stocks during all types of market conditions
- Investors should have an investment horizon of at least 5 years