Top 7 Large and Mid-Cap Funds in India

Summary:

Investors are seeking best large and mid-cap funds to diversify their portfolio, achieve investment objectives and build wealth over the long term. With a thorough research and understanding of personal financial goals, these funds can unlock new opportunities for growth.

Mutual funds are often seen as the most convenient way to diversify portfolios and potentially generate wealth over the long term. There are a wide variety of mutual fund options available, however large-cap and mid-cap funds are gaining particular significance. They have become increasingly popular among investors seeking both growth as well as stability. In this blog, we will explore the best large and mid-cap funds in 2023. But first, let’s get a clear idea of what large and mid-cap funds are.

Large-cap funds – These funds primarily invest in stocks of large-cap companies, meaning well-established corporations with a market capital that typically surpasses USD 10 billion. Large-cap stocks tend to be less risk as compared to the smaller counterparts which makes them a stable investment option.

Mid-cap funds – These funds invest in stocks of mid-sized companies with a market cap between USD 2 billion and USD 10 billion. These companies are identified to be in their growth phase and ensure stability along with growth potential.

Benefits of Large and Mid-Cap Funds

Here is an overview of the many benefits these funds offer:

• Diversification and risk mitigation – Mutual fund investments enable access to a diversified portfolio of stocks. Spreading investments allows traders to reduce the risk associated with fluctuations in individual stock pricing.
• Professional management – Mutual funds are taken care of by professional portfolio managers. They are fully capable of making informed decisions based on accurate research and analysis. This prevents investors with lack of time and knowledge from making wrong choices.
• Growth potential – Mid-cap funds are popularly known for offering the potential for tremendous growth. Even though they invest in companies past their initial stages they still hold significant scope for expansion, making them attractive for investors with a longer investment horizon.
• Stability – Large-cap stocks tend to be more stable, making them a good alternative for conservative investors or those approaching retirement. They provide a cushion against volatility.

Best large and mid-cap funds for 2023

Now that we have acquired a sense of what large and mid-cap funds are and what are the benefits they offer, let’s check out some of the most promising funds you can invest in:

• Mirae Asset Emerging Bluechip Fund

Managed by Mirae Asset Mutual Fund, this fun has performed consistently well over the past few years. It primarily focuses on investing in mid-cap stocks but may also allocate a portion of its portfolio to large-cap stocks. The fund’s historical returns and low expense ratio makes it an appealing choice among investors.

• Aditya Birla Sun Life Equity Fund

This fund involves investment in a diversified portfolio comprising of both large-cap and mid-cap stocks. It has an impressive track record of generating promising returns. With a disciplined approach, this fund has emerged as one of the leading asset management companies of India.

• HDFC Mid-Cap Opportunities Fund

It is managed by HDFC Mutual Fund and aims to mainly invest in mid-cap stocks while maintaining a diversified portfolio. In addition to its consistent performance, this fund has showcased strong research and analysis capabilities.

• Kotak Emerging Equity Scheme

Managed by Kotak Mahindra Mutual Fund, this fund another choice investors like to go for. It primarily emphasizes on selecting stocks with huge growth potential. This fund also has a robust track record and is seen as a reliable for those who prefer a balanced fund.

• Axis Midcap Fund

With a focus on mid-cap stocks the fund aims to generate long-term capital appreciation. Managed by Axis Mutual Fund, it has an experienced management team and a consistent performance. This has helped the fund position itself alongside some of India’s best large and mid-cap funds.

• Invesco India Midcap Fund

This fund focuses on providing investors capital appreciation by investing mainly in mid-cap stocks. It well-known for its well-defined investment strategy and prudent risk management practices.

• ICICI Prudential Midcap Fund

Managed by ICICI Prudential Mutual Fund, one of the most trusted names in India’s mutual fund industry, this fund focuses on mid-cap stocks. So far, it has delivered impressive returns.

Key considerations while investing in large and mid-cap funds

There are certain key pointers to evaluate before you start investing even in the best large and mid-cap funds. These include –

• The historical performance of the fund, past performance and short term and long term returns
• The experience and track record of the fund manager responsible for making your investment decisions
• Expense ratio as funds with lower ratio can help maximize returns in the long run
• The portfolios of the fund to ensure they are well diversified and manage risk effectively
• Your investment horizon so that you can choose a relevant and best suitable fund
• Your risk tolerance to make the right choice of investment

Exploring India’s promising funds: Unlocking new investment opportunities

As we discussed in this blog, there are several options if you want to invest in large and mid-cap funds. The popularity they have gained among investors can be attributed to the stability that large-cap stocks offers and the substantial growth potential the mid-cap stocks provide. Funds featured by banks like ICICI, Kotak and Invesco among others are reputable and reliable.