Best Return in Large and Midcap Fund: Motilal Oswal Large and Midcap Fund has given the best returns to investors in the category of Large and Midcap funds during the last 1 year, 3 years and 5 years. This scheme, which has consistently proven to be a champion in its category, has transformed a lump sum investment of Rs 1 lakh to more than 2 times in 3 years and 3 times in 5 years. The special thing is that this scheme has given tremendous returns even on investments made through Systematic Investment Plan (SIP). We will give further details of the past performance of this scheme of Motilal Oswal Mutual Fund, but before that let us take a look at its features and investment strategy.
What is the investment strategy?
Motilal Oswal Large and Mid Cap Fund is an open ended equity scheme. Under SEBI rules, it is necessary to invest at least 35% of the corpus of any large and mid cap fund in large cap stocks and 35% in mid cap stocks. That means, the share of small cap funds in this fund cannot be more than 30%. Minimum investment of 35-35% in large cap and mid cap also means that the equity exposure of this fund will not be less than 70% at any time. There is no minimum limit for equity exposure. Large cap stocks strengthen this fund, while investing in mid caps increases the possibility of high returns.
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past returns of the fund
- 5 Year Return (Direct Plan): 27.44%
- 5 Year Return (Regular Plan): 25.48%
- Benchmark index return in 5 years: 22.50%
- 3 Year Returns (Direct Plan): 26.93%
- 3 Year Returns (Regular Plan): 25.15%
- Benchmark index return in 3 years: 18.84%
- 1 Year Return (Direct Plan): 50.37%
- 1 Year Return (Regular Plan): 48.40%
- Benchmark index return in 1 year: 29.98%
(Source: AMFI)
The above data shows that Motilal Oswal Large & Mid Cap Fund has always given better returns than its benchmark index over the periods of 1 year, 3 years and 5 years. During all these three durations, it has been the highest returning scheme of its category. You can see below the current value of a lump sum investment of Rs 1 lakh made during this period in the scheme:
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Current value of investment of Rs 1 lakh in the scheme
– In 1 year: Rs 1,60,724
– In 3 years: Rs 2.04 lakh
– In 5 years: Rs 3,38,579 (Rs 3.39 lakh)
(Source: Scheme Factsheet)
Motilal Oswal Large and Mid Cap Fund has given excellent returns not only on lump sum investment but also on investments made through Systematic Investment Plan (SIP), the calculation of which you can see below:
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SIP Returns of Motilal Oswal Large and Mid Cap Fund
– Monthly SIP amount: Rs 10,000
– Investment period: 5 years
– Total investment in 5 years: Rs 6 lakh
– Annual return on SIP in 5 years: 33.47%
– Fund value after 5 years: Rs 13,60,902 (Rs 13.6 lakh)
(Source: Value Research SIP Calculator)
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Important things related to the scheme
You can see some more important things about Motilal Oswal Large and Mid Cap Fund here, which is important for any investor to know:
- Scheme Name: Motilal Oswal Large and Mid Cap Fund
- Benchmark Index: NIFTY Large Midcap 250 Total Return Index
- Risk Level (Riskometer): Very High
- Assets under management (AUM): Rs 7,502.01 crore (26 November 2024)
- Value Research Rating: 5 stars
- Allotment date: 17 October 2019
- Expense Ratio (Direct Plan): 0.51%
- Expense Ratio (Regular Plan): 1.77%
- Exit Load: 1% if exited within 1 year of allotment, no exit load thereafter
- Fund Manager: Ajay Khandelwal, more than 18 years of experience
Top 10 Holdings of Motilal Oswal Large and Mid Cap Fund
- Trent Ltd. :6.2%
- Zomato Ltd. :5.8%
- Kalyan Jewelers India Ltd. :5.8%
- Samvardhana Motherson International Ltd. :4.6%
- Suzlon Energy Ltd. : 4.1 %
- Bharti Airtel Ltd. : 4.0 %
- Prestige Estates Projects Ltd. :3.9%
- Mankind Pharma Ltd. :3.9%
- Inox Wind Ltd. : 3.9%
- Gujarat Fluorochemicals Ltd. : 3.8%
For whom is this fund suitable?
This fund can be the right option for those investors who want to invest for the long term and have the ability to tolerate market risk. This can be a good option for investors who want to take advantage of the growth of midcap and largecap companies through a diversified portfolio. But it is important to keep in mind that the risk level of this fund is ‘very high’. Therefore, market fluctuations may impact the performance of the fund.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any scheme. There is no guarantee that the past returns of equity mutual funds will continue in the future also. Take investment decisions only after taking the advice of your investment advisor. .)
