Top Large & Mid-Cap Mutual Funds for 2019: Performance & Analysis

With the re-categorization of mutual fund schemes, a new category of mutual funds emerged- the Large and Mid Cap Fund.

The system that SEBI has now evolved has 36 categories of mutual funds.

The basic idea of categories is that one can divide funds into different buckets based on investment usages and characteristics.

Best Large and Mid Cap Funds 2019 – Details

As the name suggests this category of funds, invest mostly in large and mid-size companies. Here are the top 5 Large and Mid Cap Funds for 2018.

1. Principal Emerging Bluechip Fund

This is one of the best large and mid-cap fund to invest in 2018. It is an open-ended fund and carries a very high risk. However, this fund has proven to give decent returns and its return since launch is 23.81%.

 Key Information 

Launch Date 01 January 2013 NAV (13th Dec 2018) ₹106 Plan Type Direct Rating by Groww 3 Star AUM (Fund Size) ₹1,625 Cr Riskometer  Very High Minimum SIP ₹500 Minimum SWP ₹500 Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Large Midcap 250 TRI since its launch. Age of the fund 5 years old Expense Ratio 1.25% Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%; Type  Open Ended

Analysis 

This five-star fund has crossed its benchmark by a large margin since its launch.

The fund hunts for companies with good growth prospects and return ratios over the next two to three years.

It looks for firms with a good management track record and also trades at attractive valuations. It specifically scouts for stocks owned by institutions.

The fund typically parks 40% each in large-caps and mid-caps, with a residual small-cap allocation. In recent times, it has been overweight on large-caps, relative to the category.

Holdings

2. Canara Robeco Emerging Equities

This is the best performing fund in large and mid-cap fund category. It is a fund with high risk and has given a return of 25.87% since its launch.

Key Information 

Launch Date 01 January 2013 NAV (26 July 2018) ₹93.9 Plan Type Direct Rating by Groww 4 Star AUM (Fund Size) ₹3,937 Cr Riskometer Moderately High Minimum SIP ₹1,000 Minimum SWP ₹1,000 Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch. Age of the fund 5 years old Expense Ratio 0.96% Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%; Type  Open Ended

Analysis 

This fund has been given a rating a five-star rating.

It is a sector-agnostic fund, which looks out for opportunities across sectors with a bias towards mid-caps.

Its attempt is to identify companies which have the potential to become leaders of tomorrow in their respective sectors.

It uses growth at a reasonable price approach to pick companies which show consistent earning growth, higher than that of the market.

Holding

3. DSP BlackRock Equity Opportunities Fund

This fund has not performed well in the last 1 year. It is a fund with moderately high risk but has given a return of 17.35% since its launch.

Key information

Launch Date 01 January 2013 NAV (26 July 2018) ₹217.3 Plan Type Direct Rating by Groww 3 Star AUM (Fund Size) ₹5,326 Cr Riskometer Moderately High Minimum SIP ₹500 Minimum SWP ₹500 Performance w.r.t its Benchmark Has not consistently outperformed its benchmark NIFTY 50 Total Return since its launch. Age of the fund 5 years old Expense Ratio 1.09% Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%; Type  Open Ended

Analysis 

The scheme aims to generate long-term capital appreciation. The secondary objective is income generation and distribution of dividend, from a portfolio constituted of equity and equity-related securities.

It is a flexi-cap fund https://groww.in/blog/top-10-mid-cap-mutual-funds/with no pre-defined market capitalization limit. However, the fund has had a bias towards large caps.

In recent times, the fund has maintained a 70% plus large-cap exposure, with mid-cap stocks at about 20%.

Holding

4. Invesco India Growth Opportunities Fund

It is a fund with moderately high risk but has given a return of 17.35% since its launch.

Key Information 

Launch Date 01 January 2013 NAV (26 July 2018) ₹35.2 Plan Type Direct Rating by Groww 5 Star AUM (Fund Size) ₹892 Cr Riskometer Moderately High Minimum SIP ₹500 Minimum SWP ₹1,000 Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 250 Large MidCap TRI since its launch. Age of the fund 5 years old Expense Ratio 1.09% Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%; Type  Open Ended

Analysis 

The scheme seeks to generate capital appreciation from a diversified portfolio of predominantly equity and equity related instruments of large and mid-cap companies.

Given the volatility in equity markets, it is crucial to be with large-sized companies because of their long-established presence in the organized part of the economy.

Therefore, mutual fund investors should consider Invesco India Growth Scheme, which largely focuses on such large companies.

Holding

What is Large and Mid Cap Fund Category?

At present, some large-cap schemes carry a sizable chunk of mid-cap stocks in their portfolios.

However, there are concerns that this ‘style drift’ puts investors at risk. That’s the main reason for introducing this new Large & Mid Cap equity fund category.

As per SEBI’s definition, Large and Mid-Cap Fund Category has to invest a minimum 35% in large-cap and mid-cap stocks each, while the rest can be invested either way.

Beyond 75%, a fund manager is free to vary the allocation.

Key Details:

Scheme type Equity scheme Definition An open ended equity mutual fund investing in both large cap and mid cap stocks of Indian market Asset allocation Minimum investment in equity & equity related instruments of large cap stocks – 35% of total assets and mid cap stocks – 35% of total assets

Investment style

If you consider the allocation, then it’s similar to a multi-cap fund.

The difference within these two categories is that multi-cap fund is not restricted to a strict allocation, between large and mid-cap stocks.

The only condition is that it has to adhere is to invest minimum of 65% in equity-related instruments.

Things to Remember

Following the few important things you should always remember before investing in Mutual Funds :

1.Higher rates

Don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.

Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.

2. SIP 

Equity-oriented mutual funds are best for long-term investment tenure and through Systematic Investment Plan (SIP). 

SIP is a much better and safer option for investing in equity oriented mutual funds.

Direct plan for mutual fund gives you higher returns as compared to the regular plan of mutual fund schemes.

STP route is best for all those investors who wish to invest a lump sum in mutual fund schemes because this way they get the dual benefits of comparative risk investment.

3.Review your Investment

It is important you review your investment from time to time, but not too often. Once a few weeks is good enough.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww