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 | 4.07 | 27.97 | 28.77 | – |
| Invesco India Large & Mid Cap Fund | 6.28 | 25.33 | 23.87 | 16.40 |
| Bandhan Large & Mid Cap Fund | -1.37 | 24.13 | 25.25 | 16.41 |
| ICICI Prudential Large & Mid Cap Fund | 2.57 | 21.73 | 27.02 | 16.60 |
| UTI Large & Mid Cap Fund | -2.04 | 21.26 | 25.01 | 14.29 |
| Nippon India Vision Large & Mid Cap Fund | 1.29 | 21.12 | 23.88 | 13.57 |
| HSBC Large & Midcap Fund | -0.53 | 20.73 | 22.43 | – |
| HDFC Large and Mid Cap Fund | -1.63 | 20.52 | 25.58 | 15.12 |
| DSP Large & Mid Cap Fund | -2.18 | 19.92 | 22.49 | 15.69 |
| Kotak Large & Midcap Fund | -0.67 | 18.87 | 22.08 | 15.67 |
Data as on September 17, 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