Large and mid cap mutual funds, In the dynamic world of investing, mutual funds have emerged as a popular choice for individuals seeking diversified exposure to the stock market. Among the plethora of options available, large and mid cap mutual funds stand out for their unique blend of stability and growth potential. These funds invest in a mix of large cap companies, known for their robust market presence and stability, and mid cap companies, which offer high growth potential. This balanced approach aims to offer investors the best of both worlds: the safety of large cap investments and the growth opportunities of mid cap stocks.

Why Invest in Large and Mid Cap Mutual Funds?

Investing in large and mid cap mutual funds offers several advantages. Firstly, these funds provide a balanced risk profile, making them suitable for investors looking for moderate risk investments with the potential for significant returns. The diversification across large and mid cap stocks helps in reducing the volatility associated with pure mid cap or large cap funds. Additionally, these funds are managed by experienced fund managers who actively analyze market trends, company fundamentals, and economic indicators to optimize the fund’s performance.

1. Quant Large and Mid Cap Fund

• Expense Ratio: 0.75%
• 3Y CAGR: 31.85%
• AUM: ₹1,689 CR

Quant Large and Mid Cap Fund offers an exceptional blend of growth and value investing, with a keen eye for seizing market opportunities. Its impressive three-year Compound Annual Growth Rate (CAGR) reflects the fund’s ability to navigate market fluctuations effectively. The relatively low expense ratio ensures that investors get to keep a larger portion of the fund’s gains.

2. ICICI Prudential Large & Mid Cap Fund

• Expense Ratio: 0.89%
• 3Y CAGR: 27.69%
• AUM: ₹10,268 CR

ICICI Prudential Large & Mid Cap Fund stands as a testament to the prowess of combining blue-chip stability with the dynamism of mid-sized companies. It’s a well-rounded option for investors seeking growth along with a cushion against market downswings, managed by one of India’s leading asset management companies.

3. Mahindra Manulife Large & Mid Cap Fund

• Expense Ratio: 0.41%
• 3Y CAGR: 27.69%
• AUM: ₹1,696 CR

Offering the lowest expense ratio among its peers, the Mahindra Manulife Large & Mid Cap Fund is an attractive choice for cost-conscious investors. It aims to generate long-term capital appreciation by investing in a mix of large and mid cap stocks, backed by rigorous research and a strategic investment approach.

4. HDFC Large and Mid Cap Fund

• Expense Ratio: 0.9%
• 3Y CAGR: 27.33%
• AUM: ₹15,022 CR

HDFC Large and Mid Cap Fund is designed for investors seeking a diversified portfolio with a balance between stability and growth. Its substantial AUM underscores the trust investors have in HDFC’s management capabilities, making it a solid choice for long-term investment.

5. Motilal Oswal Large and Mid Cap Fund

• Expense Ratio: 0.53%
• 3Y CAGR: 26.36%
• AUM: ₹3,025 CR

The Motilal Oswal Large and Mid Cap Fund is crafted for investors who are looking to benefit from a meticulously selected mix of large and mid cap stocks. The fund’s strategy focuses on companies with robust business models and growth potential, managed by one of the seasoned asset management firms in India. Its competitive expense ratio coupled with a commendable three-year CAGR makes it a compelling option for growth-oriented investors.

6. Bandhan Core Equity Fund

• Expense Ratio: 0.74%
• 3Y CAGR: 26.09%
• AUM: ₹3,185 CR

Bandhan Core Equity Fund aims to offer investors diversified exposure to a portfolio of fundamentally strong large and mid cap stocks. It seeks to balance risk and reward by investing in companies with sustainable business practices and the potential for long-term capital appreciation. The fund’s performance is a testament to its strategic investment approach, making it suitable for investors aiming for consistent growth.

7. Baroda BNP Paribas Large & Mid Cap Fund

• Expense Ratio: 1%
• 3Y CAGR: 25.09%
• AUM: ₹971 CR

This fund is a collaborative effort between Baroda Mutual Fund and BNP Paribas, combining global expertise with local market insights. The Baroda BNP Paribas Large & Mid Cap Fund is designed to capitalize on the growth opportunities in both large and mid cap segments, maintaining a balanced approach to risk and return. Its investment philosophy centers around identifying companies with strong competitive positions and financial health.

8. UTI Large & Mid Cap Fund

• Expense Ratio: 1.25%
• 3Y CAGR: 23.68%
• AUM: ₹1,996 CR

UTI Large & Mid Cap Fund is backed by one of the oldest and most respected asset management companies in India. The fund aims to generate long-term capital appreciation by investing in a mix of large and mid cap stocks that demonstrate potential for high growth. Despite a higher expense ratio, the fund’s solid performance metrics underscore its effective investment management strategy.

9. Bank of India Large & Mid Cap Fund

• Expense Ratio: 1.58 %
• 3Y CAGR: 22.7%
• AUM: ₹271 CR

This fund offers investors the opportunity to tap into the growth prospects of both large and mid cap companies through a single investment vehicle. Managed by Bank of India’s asset management division, the fund prioritizes investments in companies with scalable operations and sustainable growth trajectories. While the expense ratio is on the higher side, it reflects the fund’s focus on delivering quality over cost.

10. SBI Large & Mid Cap Fund

• Expense Ratio: 0.78%
• 3Y CAGR: 22.65%
• AUM: ₹18,926 CR

SBI Large & Mid Cap Fund is a product of India’s largest public sector bank’s asset management wing, known for its robust fund management processes. The fund seeks to provide investors with growth and income by investing in a balanced portfolio of large and mid cap stocks. It focuses on companies with strong fundamentals, quality management, and clear growth indicators, making it a preferred choice for investors looking for stability and performance.

Creating a Diversified Investment Portfolio

Investing in large and mid cap mutual funds is an excellent way to build a diversified investment portfolio. By allocating assets across different sectors and company sizes, investors can reduce risk and increase the potential for returns. It’s important to consider factors such as the fund’s performance history, expense ratio, and the asset management company’s reputation before making an investment decision.

Conclusion

Large and mid cap mutual funds represent a strategic investment choice for those looking to diversify their portfolios with a balanced mix of stability and growth. Each fund mentioned above offers a unique approach to capturing market opportunities, reflecting a variety of investment philosophies and management styles. When selecting a fund, investors should consider their own financial goals, risk tolerance, and the fund’s performance history, expense ratio, and asset management quality. With the right selection, large and mid cap funds can be a valuable addition to any investment portfolio, providing the potential for balanced returns over the long term.