These 2 LargeMidcap Mutual Funds outperformed Benchmark + Peers in short, medium and long term

Best Largemidcap mutual funds in 2020-21Top LargeMidcap Mutual Funds that outperformed in short term to long term


Every one wants to invest in top performing mutual fund schemes. Some funds might perform well in the short term, some in the medium term and some on long term. However, if someone filters largemidcap mutual funds based on last 1 to 7 years trailing returns and ask you to just filter 2 or 3 funds, how would you choose. This is a tough job. Here come trailing returns. This article would provide analysis of largemidcap mutual funds and among them which are those 2 funds that have outperformed in the last 1 to 7 years tenure considering rolling returns.

Also Read: Best Largecap Mutual Funds to invest

What is rolling returns?

Before we jump into the performance of these largemidcap mutual funds, let us check what is rolling returns all about.

Rolling returns in mutual funds are annualized average returns for a specific period, ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods, similar to those actually experienced by investors. Let me explain with an example.

1 year rolling returns means the average annualized returns for 1 year. Say we want to compute 1 year rolling returns till 30-Sep-20, we need 2 years data i.e. 1-Oct-2018 to 30-Sep-2020. The annualized return would be first computed from 1-Oct-2018 to 30-Sep-2019 (1 year), then 2-Oct-18 to 1-Sep-20 (1 year), then 3-Oct-18 to 2-Oct-19 (1 year) etc., Such returns are averaged and rolling returns are formed. One can ignore the holiday and weekends, else it would be too much of the analysis.

While trialing returns would be a point in time specific, rolling returns would tell investors how a mutual fund performed assuming they invest every day. This way, bad funds which are performed only in short duration can be eliminated while making investment decisions.

List of LargeMidcap Mutual Funds considered

There are almost 21 mutual funds in largemidcap mutual fund category which invests majorly in largecap + midcap stocks. While there is such huge list, only 5 mutual funds have given high returns in the last 1 year, 2 years, 3 years  and 5 years. We have considered only regular plans for this analysis. Here is the total universe of 21 large-midcap funds.

1) Mirae Asset Emerging Bluechip Fund

2) Canara Robeco Emerging Equities

3) Principal Emerging Bluechip Fund

4) Invesco India Growth Opportunities Fund

5) Quant Large & Mid Cap Fund

6) Kotak Equity Opportunities Fund

7) L&T Large and Midcap Fund

8) Tata Large & Mid Cap Fund

9) Aditya Birla Sun Life Equity Advantage Fund

10) SBI Large and Midcap fund

11) DSP Equity Opportunities Fund

12) Edelweiss Large & Mid Cap Fund

13) Sundaram Large and Midcap

14) ICICI Prudential Large & Mid Cap Fund

15) IDFC Core Equity Fund-Regular Plan

16) Franklin Equity Advantage

17) UTI Core Equity

18) BOI Axa Large and midcap fund

19) Nippon India Vision Fund

20) HDFC Growth Opps fund

21) LIC MF Large and Midcap fund

Now let us check about top performing funds based on rolling returns.

Also Read: Quant Smallcap Fund – Should you invest now?

Top Performing LargeMidcap Mutual Funds – 7 Years Rolling Returns

Out of these 21 funds, only 3 funds have outperformed NIFTY Largemidcap 250 Index of 80% or more consistency. All these funds gave over 15% annualized returns.

1) Mirae Asset Emerging Bluechip Fund

2) Canara Robeco Emerging Equities

3) Principal Emerging Bluechip Fund

Top Performing LargeMidcap Mutual Funds – 5 Years Rolling Returns

Out of these 21 funds, again, only 3 funds have outperformed NIFTY Largemidcap 250 Index of 80% or more consistency. All these funds gave majorly 15% annualized returns and minor portion between 12% to 15% returns.

1) Mirae Asset Emerging Bluechip Fund

2) Canara Robeco Emerging Equities

3) Principal Emerging Bluechip Fund

5) SBI Large and midcap fund

Top Performing LargeMidcap Mutual Funds – 3 Years Rolling Returns

Out of these 21 funds, 3 funds have outperformed NIFTY Largemidcap 250 Index of 70% or more consistency. All these funds gave majorly over 8% annualized returns and minor portion which is less than 8% and even negative.

1) Mirae Asset Emerging Bluechip Fund

2) Canara Robeco Emerging Equities

3) Principal Emerging Bluechip Fund

Top Performing LargeMidcap Mutual Funds – 2 Years Rolling Returns

Out of these 21 funds, 4 funds have outperformed NIFTY Largemidcap 250 Index of 70% or more consistency. All these funds consistently (70% to 90%) able to manage to give positive returns, but still 10% to 30% of the times it gave negative returns.

1) Mirae Asset Emerging Bluechip Fund

2) Canara Robeco Emerging Equities

3) Invesco India Growth Opportunities Fund

4) Sundaram Large and midcap fund

Top Performing LargeMidcap Mutual Funds – 1 Year Rolling Returns

Out of these 21 funds, 5 funds have outperformed NIFTY Largemidcap 250 Index of 70% or more consistency. All these funds consistently (70% to 80%) able to manage to give positive returns, but still 20% to 30% of the times it gave negative returns.

1) Mirae Asset Emerging Bluechip Fund

2) Kotak Equity Opps Fund

3) Canara Robeco Emerging Equities

You may like: Top Midcap Mutual Funds for 2020

Top Performing LargeMidcap Mutual Funds in the last 1 to 7 years Rolling Returns

Having too many funds from particular segment does not makes any sence. If you observe, out of all these 21 funds, only Mirae Asset Emerging bluechip fund and Canara Robeco emerging equities fund were consistently beating benchmark of over 70% of the times considering the rolling returns in the last 1 to 7 years time frame.

Since these two funds have outperformed benchmark + all other peers in terms of rolling returns, let us also check how these 2 funds performed in terms of trailing annualized returns now.

1) Mirae Asset Emerging Bluechip Fund – Trailing Returns

1 year – 15%

3 years – 7%

5 years – 14%

7 years – 24%

2) Canara Robeco Emerging Equities – Trailing Returns

1 year – 14%

3 years – 5%

5 years – 14%

7 years – 23%

It is clear that except for 3 years time frame, where the returns are low, these two funds outperformed in terms of rolling returns + trailing annualized returns in the last 1 to 7 years time frame with their benchmark and peers.

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Suresh KP

8 comments

  • Arpan Thukral

    Hi Suresh sir,

    I have sip in UTI long term equity fund (tax saving), uti equity fund, uti mid cap fund, mirae asset large cap fund and sbi magnum.

    My goal is wealth maximization only and I can hold my investments for a long term. My age is currently 32 and I am employed in private company.

    Please suggest what to add/stop/exit. I am thinking of adding at least one more sip in my investments.

    Thanks in advance.

    • Hello Arpan, Good to hear about you. Don’t you think you have gone overboard on UTI? What happens if there is an issue with UTI AMC and it collapses? Your hard earned money would vanish. I always advice to diversify investors portfolio across market caps (Large, midcap, smallcap, balanced and debt funds) + across AMCs. I would advice you to review them as first step. Below are the comments about the funds indicated by you
      1) All UTI funds indicated – Good, continue
      2) Mirae Largecap – Good – continue
      3) SBI Magnum multicap – Under performer in the last couple of years. You can wait for another 1 year and recheck and take a call.

  • Babloo

    Always amazing analysis.
    Thanks

  • JOHN

    Sir
    If you narrow the seletion to one,which one you choose-Mirae or Canara ?
    Thanks in advance

    • John, It would be very difficult as both are neck to neck in both annualised returns as well as trialing returns. Even I wanted to pick-up 1, but was difficult to conclude

  • Rozita Coutinho

    V good analysis……can u pl help me reduce the no of funds in my portfolio
    If yes I will send u the list….thanks

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