In comparison with the large cap and even flexicap fund it has been observed that large and mid cap funds have outperformed and yielded returns as following:
|Category||1 year||3 years||5 years||10 years|
|Large & mid-cap||59.26||15.69||14.68||14.56|
Features of this large and mid cap funds category:
1. These funds typically diversify across large and mid cap capitalization companies. So, typically large and mid cap stocks select the top 250 companies in market capitalization.
These funds are typically considered to be placed on a higher risk-return trade off.
2. Now as per the SEBI mandate, minimum 35% of the funds are to be put in equity and equity related securities of large companies, and a minimum of 35% of total assets in mid cap stocks.
3. Because of the mid cap exposure, this fund is typically is for those with a higher risk appetite.
Top Rated, High Performing Large And Mid Cap Funds
|Large and mid cap fund||Rating||SIP 1-year return||3-year return||5-year return|
|Mirae Asset Emerging Bluechip fund||5-Star by Morning Star, Value Research and Crisil||60.78%||33.57%||24.02%|
|Principal Emerging Bluechip Fund - Direct Plan - Growth||5-Star rating by Morning Star and 4-Star rated by Value Research and Crisil||60.15%||30.36%||20.35%|
|Canara Robeco Emerging Equities - Direct Plan - Growth:||5-Star rating by Morning Star and Value Research and 4-Star by CRISIL||57.77%||30.50%||21.28%|
1. Mirae Asset Emerging Bluechip fund:
Within the category of large and mid cap funds, this fund commands the highest fund size of Rs. 18,675.71 crore. Expense ratio is also the lowest at .7%. The fund is assigned a 5 star rating by all the major rating companies including Value Research, Morning Star and CRISIL.
The fund came into being in the year 2013 and since inception has given an outstanding return of over 25 percent.
The fund is pegged to the benchmark Nifty Large Midcap 250 TRI.
The fund's major allocation is into financial, followed by technology, healthcare, automobile and energy stocks. The fund manager of the Mirae Asset Bluechip Equity fund is Mr. Ankit Jain - B.Tech (ICT) and MBA (Finance).
Top holdings in the fund's portfolio include ICICI Bank, HDFC Bank,Infosys, Axis Bank, SBI.
SIP in this fund can be started for minimum Rs. 1000
2. Principal Emerging Bluechip Fund - Direct Plan - Growth:
The fund's AUM size is Rs. 2840.7 crore and commands a lower expense ratio of 0.91 percent in comparison to category average expense ratio of 1.05%. The fund is majorly invested into large caps. This fund was also launched in the year 2013 and since then have given a return of 21.11%.
The fund's allocation across sectors is majorly into financials, followed by chemicals and engineering among others.
Top holdings of the fund include HDFC Bank, ICICI Bank, Infosys, Dixon Technologies and Reliance Industries among others.
3. Canara Robeco Emerging Equities - Direct Plan - Growth:
The fund size is Rs. 9632.66 crore and is rated as 5-Star by both Morning Star and Value Research but 4-Star by CRISIL. The fund's investments are segregated as 38% into large caps, 33% into small caps and remaining into small caps, debt and very low risk securities.
Expense ratio charged by the fund is 0.64%.
The fund launched in the same year as the other 2 funds i.e. 2013 has given a return of 22.81% since inception.
The fund's top holdings include ICICI Bank, HDFC Bank, Infosys, Bajaj Finance, Axis Bank etc.
SIP in the fund can be started for minimum Rs. 1000
The investor with a substantial time horizon of say over 3 years and appetite for higher risk can invest in these funds as a larger exposure to large caps provide stability while the growth aspect is met by exposure to the mid cap stocks. For with a lesser penchant for risk can even consider multicap funds.
Mutual funds are subject to risk. Please do your own analysis and research.Mutual funds listed here are just for information purpose and should not be construed as investment advice.