Highest Return Mutual Funds in the Last 10 Years – Large & Mid Cap Fund Category

October 3, 2024 Mutual Fund

The mid and small-cap segments have demonstrated remarkable performance in recent years, driven by significant growth across numerous stocks and sectors.

While caution is necessary near market highs, maintaining a balanced exposure across various market capitalisations is wise. Large and Mid Cap Funds represent a unique multi-cap investment strategy that allows investors to diversify their holdings among both large and mid-sized companies.

These funds offer diversification across market caps, with a minimum allocation of 35% each in large caps and mid caps, ensuring substantial exposure in both segments. The maximum exposure to each category is capped at 65% to enable a balance between stability and growth potential.

Investing in Large and Mid Cap Funds provides stability through significant large-cap exposure while aiming for enhanced returns and long-term wealth creation with a substantial mid-cap allocation. These funds occupy a middle ground on the risk-reward spectrum between Large Cap Funds and Mid Cap Funds.

In this article, explore the highest return mutual funds in the last 10 years from the Large & Mid Cap Fund category, selected based on SIP returns.

Highest Return Large & Midcap Fund in the last 10 years #1: Quant Large & Mid Cap Fund

Launched in December 2006, Quant Large & Mid Cap Fund is an agile scheme in the Large & Mid Cap Fund category that follows aggressive investment strategies. The fund has registered extraordinary performance from 2020 onwards, thereby rewarding its investors with remarkable gains.

Quant Large & Mid Cap Fund adopts a quantitative approach to select high-growth stocks across sectors. This quantitative approach is based on the fund house’s proprietary VLRT framework, viz. Valuations, Liquidity, Risk, and Timing. The active investment approach and the ability to timely identify multi-bagger ideas have helped it to generate a remarkable lead over the benchmark and its prominent peers.

Performance Quant Large & Midcap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 26, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Quant Large & Mid Cap Fund grew at an XIRR of 23.6% compared to a growth of 20.6% in its benchmark Nifty LargeMidcap 250 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 41,88,489.

Top holdings of Quant Large & Midcap Fund

Portfolio data as of August 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Its turnover ratio stood between 300-400% in the last one year, indicating a momentum-driven approach to picking stocks. The fund typically maintains a compact portfolio of around 25-30 stocks. As of August 31, 2024, the fund held 26 stocks in its portfolio, with the top 10 stocks accounting for approximately 58% of its assets. Quant Large & Midcap Fund’s top stock holding comprises mainly large-cap stocks, along with a few mid-cap stocks and includes names such as Reliance Industries, Aurobindo Pharma, ITC, Samvardhana Motherson International, and IRB Infrastructure Developers.

Highest Return Large & Midcap Fund in the last 10 years #2: Bandhan Core Equity Fund

Launched in August 2005, Bandhan Core Equity Fund is the erstwhile IDFC Core Equity Fund. While, the fund was earlier categorised as a Multi Cap Fund, since 2018 the fund has a mandate to invest at least 35% each in the large-cap and mid-cap segments. The fund aims to identify well-managed sustainable businesses whose shares are available at reasonable value. Its portfolio is dispersed across a wide range of stocks covering several sectors to reduce concentration risk.

Even though Bandhan Core Equity Fund trailed the benchmark and category peers during the 2020 market crash, it has shown significant improvement in performance in recent years and stands among the top quartile performers in the ongoing bull phase.

Performance Bandhan Core Equity Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 26, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Bandhan Core Equity Fund grew at an XIRR of 22.4%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 39,24,823.

Top holdings of Bandhan Core Equity Fund

Portfolio data as of August 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Bandhan Core Equity Fund follows an active portfolio management to dynamically shift allocation between market caps and sectors. It carries a high portfolio turnover of 130-180% over the last one year, signifying a low holding period for many of its stocks. The fund holds a large portfolio of stocks, limiting allocation in each stock to under 3%. As of August 31, 2024, Bandhan Core Equity Fund held 110 stocks. Its top allocation is in large-cap names such as Reliance Industries, HDFC Bank, Infosys, ICICI Bank, and Interglobe Aviation, among others.

Highest Return Large & Midcap Fund in the last 10 years #3: Mirae Asset Large & Midcap Fund

Incepted in July 2010, Mirae Asset Large & Midcap Fund was initially categorised under the Mid Cap Fund category. It was later recategorised as a Large & Midcap Fund in 2018 to comply with SEBI’s norms. However, the change in its mandate did not have a significant impact on its portfolio.

The fund managers look for high growth-oriented stocks across large-cap and mid-cap segments that are available at fair and attractive valuations. Mirae Asset Large & Midcap Fund has not only managed to deliver massive returns in the bull periods but also considerably restricted losses in the bear periods. The fund’s commendable long-term performance has helped it gain popularity among investors, resulting in a massive growth in AUM over the years.

Performance Mirae Asset Large & Midcap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 26, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Mirae Asset Large & Midcap Fund grew at an XIRR of about 22%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 38,33,612.

Top holdings of Mirae Asset Large & Midcap Fund

Portfolio data as of August 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of August 31, 2024, Mirae Asset Large & Midcap Fund held a well-diversified portfolio of around 90 stocks spread across market capitalisation, with prominent large-cap names like HDFC Bank, Axis Bank, L&T, SBI, and ICICI Bank appearing among its top holdings. Notably, 5 out of its top 10 holdings are bank stocks. The top 10 stocks in the portfolio together accounted for nearly 27.3% of the total assets. Some of its top stocks have been in the portfolio for well over two years now. The fund currently holds a long tail of nearly 50 stocks with an exposure of less than 1% in each stock.

Highest Return Large & Midcap Fund in the last 10 years #4: Invesco India Large & Mid Cap Fund

Launched in August 2007, Invesco India Large & Midcap Fund is the erstwhile Invesco India Growth Opportunities Fund. Until 2017, the fund used to maintain a large-cap biased portfolio with tactical allocation in mid-cap and small-cap stocks. It now invests predominantly in stocks of large and mid-cap companies, investing a minimum of 35% in each segment. The fund utilises a blend of the ‘top-down’ and ‘bottom-up’ approach to pick stocks across market caps, without any style or sector bias.

Though the fund’s performance hit a rough patch between 2020 and 2022, it has shown significant improvement in the last couple of years. Overall, the fund has registered satisfactory gains compared to the benchmark and the category average over the long run.

Performance Invesco India Large & Midcap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 26, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Bandhan Core Equity Fund grew at an XIRR of 21.8%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 38,05,734.

Top holdings of Invesco India Large & Midcap Fund

Portfolio data as of August 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Invesco India Large & Midcap Fund avoids taking cash calls and remains full invested in equities at all times. It has recorded a moderate turnover of 60-90% in the last one year. The fund has limited allocation to under 5% in each of its holdings. As of August 31, 2024, the fund held 45 stocks in its portfolio with the top 10 stocks accounting for 37% of its assets. Its core holdings comprise ICICI Bank, Axis Bank, Trent, Cholamandalam Investment and Finance Company, and Prestige Estates Projects, among others.

Highest Return Large & Midcap Fund in the last 10 years #5: ICICI Pru Large & Mid Cap Fund

Launched in July 1998, ICICI Pru Large & Mid Cap Fund was originally known as ICICI Pru Large Cap Fund before being recategorised and renamed in 2018. Initially, the fund invested over 65% of its assets in large caps, with some tactical allocation to mid and small-cap stocks. The fund is now mandated to invest at least 35% of its assets each in large-cap and mid-cap stocks. Accordingly, the past performance of the fund (until 2018) is not directly comparable.

ICICI Pru Large & Mid Cap Fund’s substantial investment in mid-cap stocks has helped it benefit from the broad-based market rally in recent years. Additionally, its focus on fundamentally sound value-oriented stocks across high-potential sectors has resulted in superior risk-adjusted returns for its investors.

Performance ICICI Pru Large & Midcap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 26, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, ICICI Pru Large & Mid Cap Fund grew at an XIRR of 21.6%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 37,49,871.

Top holdings of ICICI Pru Large & Midcap Fund

Portfolio data as of August 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

ICICI Pru Large & Mid Cap Fund usually invests in around 80-90 stocks at any given point. As of August 31, 2024, the fund held 88 stocks in its portfolio with the top 10 stocks accounting for 36.3% of its assets. Its top holdings comprise mainly large-cap names such as Bajaj Finserv, ICICI Bank, HDFC Bank, and Maruti Suzuki India followed by some mid-cap names such as Alkem Laboratories and SBI Cards and Payment Services. Many of these stocks have been part of the fund’s portfolio for over 2 years now. The fund’s portfolio turnover has ranged between 45-65% in the last one year, indicating high conviction in its stock holdings.

Final thoughts…

Large & Mid Cap Mutual Funds offer investors an opportunity to create wealth by investing in an optimum mix of large-cap and mid-cap stocks, i.e., the leaders of today as well as the future leaders. Thus, investors benefit from the stability of large caps and the high growth potential of mid caps through a single fund.

However, with significant exposure to mid caps and some exposure to small caps, Large & Mid Cap Funds are vulnerable to high volatility. This makes the category suitable only for investors with a high risk tolerance.

Investors should adopt a cautious approach when navigating market volatility and consider systematic investment when venturing into Large & Mid Cap Funds. Moreover, one should have an investment horizon of at least 5-7 years when investing in the category.

Large caps, mid caps, or small caps? Watch this video to find out where to invest in 2024:

Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The securities quoted are for illustration only and are not recommendatory.

This article first appeared on PersonalFN here