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 | 6.50 | 28.30 | 28.15 | – |
| Invesco India Large & Mid Cap Fund | 12.14 | 25.47 | 23.58 | 16.03 |
| Bandhan Large & Mid Cap Fund | 6.59 | 24.60 | 25.17 | 16.18 |
| ICICI Prudential Large & Mid Cap Fund | 9.04 | 22.22 | 27.36 | 16.15 |
| UTI Large & Mid Cap Fund | 2.82 | 21.93 | 25.01 | 13.92 |
| Nippon India Vision Large & Mid Cap Fund | 5.63 | 21.62 | 23.39 | 13.12 |
| HDFC Large and Mid Cap Fund | 4.68 | 21.50 | 26.08 | 14.64 |
| HSBC Large & Midcap Fund | 3.58 | 20.76 | 21.90 | – |
| DSP Large & Mid Cap Fund | 2.73 | 20.44 | 22.29 | 15.39 |
| Kotak Large & Midcap Fund | 4.36 | 19.66 | 21.92 | 15.44 |
Data as on October 30, 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