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 | 8.24 | 28.48 | 30.00 | – |
| Invesco India Large & Mid Cap Fund | 14.37 | 26.46 | 25.86 | 17.06 |
| Bandhan Large & Mid Cap Fund | 3.41 | 25.05 | 26.97 | 16.99 |
| UTI Large & Mid Cap Fund | 1.92 | 21.54 | 25.55 | 13.96 |
| ICICI Prudential Large & Mid Cap Fund | 4.76 | 21.49 | 27.33 | 16.53 |
| HDFC Large and Mid Cap Fund | 1.66 | 20.85 | 26.34 | 14.49 |
| Nippon India Vision Large & Mid Cap Fund | 4.20 | 20.73 | 24.10 | 13.03 |
| DSP Large & Mid Cap Fund | 0.85 | 20.30 | 23.56 | 15.87 |
| HSBC Large & Midcap Fund | 0.26 | 20.29 | 23.85 | – |
| Kotak Large & Midcap Fund | 1.90 | 19.67 | 23.55 | 16.04 |
Data as on August 13, 2025
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