Equities are a brilliant way for investors to grow their capital and generate wealth. However, picking the right stock often proves to be a hindrance for many investors. Here’s where mutual funds come in. In this blog, we will take a look at the best large and midcap funds that can be a valuable addition to your portfolio.
Large and Midcap funds are mutual funds that offer investors the value of large cap companies along with the growth prospects of midcap stocks. Here are some of the best large and midcap funds for 2025 based on their 3-year annualised returns.
(Please note, the data is as of February 12, 2025)
Fund Name |
3Y Annualised Returns |
21.62% |
|
21.23% |
|
20.21% |
|
19.37% |
|
19.19% |
|
18.67% |
|
18.12% |
|
17.85% |
|
17.78% |
|
17.32% |
3Y Annualised Returns – 21.62%
Carries moderately high risk
Minimum SIP – ₹500
Assets Under Management (AUM) – ₹8,446 crore.
97.5% funds allocated to equity, 2.5% held as cash
Expense Ratio – 0.54%
Inception Date – October 17, 2019
3Y Annualised Returns – 21.23%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹7,574 crore.
94.5% funds allocated to equity, 5.5% held as cash, 0.1% allocated to debt
Expense Ratio – 0.60%
Inception Date – August 9, 2005
3Y Annualised Returns – 20.21%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹18,624 crore.
93.6% funds allocated to equity, 5.4% held as cash, 1% allocated to debt
Expense Ratio – 0.85%
Inception Date – July 9, 1998
3Y Annualised Returns – 19.37%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹6,249 crore.
99.7% funds allocated to equity and 0.3% held as cash
Expense Ratio – 0.66%
Inception Date – August 9, 2007
3Y Annualised Returns – 19.19%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹4,406 crore.
97.1% funds allocated to equity, 2.6% held as cash, 0.3% allocated to debt
Expense Ratio – 0.97%
Inception Date – August 1, 2005
3Y Annualised Returns – 18.67%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹23,139 crore.
99.2% funds allocated to equity and 0.5% held as cash
Expense Ratio – 0.92%
Inception Date – February 18, 1994
3Y Annualised Returns – 18.12%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹5,352 crore.
97.9% funds allocated to equity and 2.1% held as cash
Expense Ratio – 1.4%
Inception Date – January 1, 2013
3Y Annualised Returns – 17.85%
Carries very high risk
Minimum SIP – ₹1,000
AUM – ₹3,612 crore.
90.8% funds allocated to equity, 4.7% to debt, and 4.6% held as cash
Expense Ratio – 0.64%
Inception Date – December 12, 2006
3Y Annualised Returns – 17.78%
Carries very high risk
Minimum SIP – ₹100
AUM – ₹13,444 crore.
97.8% funds allocated to equity and 2.2% held as cash
Expense Ratio – 0.71%
Inception Date – May 16, 2000
3Y Annualised Returns – 17.32%
Carries moderately high risk
Minimum SIP – ₹1,000
AUM – ₹3,873 crore.
98.2% of the funds allocated to equity and 1.8% held as cash
Expense Ratio – 0.89%
Inception Date – March 28, 2019
Investing in the best large and midcap funds offers several benefits to investors.
A large and midcap fund offers a balance between value and growth. Large cap stocks tend to offer great value in the long term while the prospect of growth is higher with midcap stocks.
Diversification helps build a strong portfolio. An investor can invest in these funds to diversify their portfolio across several companies, sectors, and market caps. This allows the investor to tap into the growth in various aspects.
Although equity investments are risky, investing in a large and midcap fund can help mitigate some of these risks. Since the holdings are spread out across large cap stocks and mid cap stocks, the risk is also spread across the various companies in the sectors. Moreover, large cap stocks tend to be more stable in the long run which can offset the potential volatile nature of mid cap stocks.
One of the key challenges of investing in equities is picking the right stocks. Investing in a large and midcap fund can help investors in this regard as the funds are managed by professional fund managers who take key decisions such as stock picking and entering or exiting a stock.
Here are some of the key points that one should remember when investing in large and midcap funds -
Equity investments tend to be volatile in the short run. Investing with a long term horizon can be helpful.
Conclusion
Large and midcap funds in India can be a suitable choice for investors looking to invest in equities and capitalise in the growth of midcap stocks while benefiting from the value and stability of large cap stocks. Investing in such companies through a mutual fund can help investors not only diversify their portfolio but be reassured since these funds are managed by highly professional fund managers.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS