Best Large and Mid Cap Mutual Funds: The attraction of large and mid cap funds has continuously increased among the mutual fund investors of the country. These funds, which have maintained a better balance between risk and return, have given excellent returns in the last one year. The one year returns of the top 11 funds falling in this category have ranged from 30% to 51%. We will give information about these funds later, but first let us know what are called large and mid cap funds and what are their features.
What is the specialty of large and mid cap funds?
The corpus of large and mid cap funds is invested by dividing it into large cap and mid cap stocks. According to SEBI rules, it is necessary to invest at least 35% in the portfolio of any large and mid cap fund in the stocks of large cap companies and the same i.e. 35% in the shares of mid cap companies. Due to this balance of asset allocation, investors get the benefit of a better balance between risk and return. This is because while large cap stocks strengthen the portfolio, mid cap stocks have the potential for better growth.
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Past Returns of Top 11 Large and Mid Cap Funds
Direct plans of top 11 large and mid cap funds have given excellent returns to their investors during the last one year. Motilal Oswal Large and Mid Cap Fund is at the top in this category, which has given 51.31% return in one year. Apart from this, the remaining 10 funds have also made profits of 30 to 44% in one year.
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Large & Mid Cap Fund Name / 1 Year Returns
- Motilal Oswal Large and Midcap Fund : 51.31%
- HSBC Large and Mid Cap Fund : 44.70%
- Invesco India Large & Mid Cap Fund : 44.21%
- Bandhan Core Equity Fund : 34.65%
- UTI Large & Mid Cap Fund : 32.94%
- Baroda BNP Paribas Large & Mid Cap Fund : 32.79%
- LIC MF Large & Mid Cap Fund : 32.41%
- Canara Robeco Emerging Equities Fund : 32.10%
- Nippon India Vision Fund: 31.18%
- Edelweiss Large & Mid Cap Fund : 30.62%
- Axis Growth Opportunities Fund: 30.39%
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The benchmark of all the funds listed above is either NIFTY Large Midcap 250 TRI, which has a one-year return of 23.14%, or BSE 250 Large MidCap TRI, which has a one-year return of 19.50%. It is clear from this that all these funds have performed much better than their benchmark.
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For whom are large and mid cap funds suitable?,
The biggest advantage of investing in large and mid cap funds is diversification. Which helps in reducing the risk. These funds invest in stocks of large and mid cap companies. Shares of large companies provide stability to investors, while mid-cap companies have the potential to grow rapidly. However, due to at least 70% investment in equity, there is a lot of market risk in these funds. This is the reason why all of them have been kept in the Very High Risk level on the riskometer. Therefore, large and mid cap funds are a better option for investors who can tolerate the risk associated with investing in equities and want to invest for the long term for wealth creation.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. The past performance of any mutual fund is not a guarantee that it will continue in the future. Before investing, please consult an investment advisor.)
