Best Large and Midcap Mutual Funds to invest in 2022

Best Large and Midcap Mutual Funds to invest in 2022Largecap stocks generate stable and consistent returns in medium to long term. Midcap stocks on other hand can be multibaggers and generate high returns. Experts always advice mutual fund investors to diversify and invest in largecap and midcap segments. There is one category of funds – Large and Midcap mutual funds that invests in both largecap and midcap stocks where a mutual fund investor can explore instead of investing in multiple funds. In this article we would provide Best Large and Midcap Mutual Funds to invest in 2022 in India along with their performance metrics.

Also Read: 5 Multibagger Mutual Funds that generated 10x returns in 10 years

What are Large and Midcap Mutual Funds?

Largecap funds in simple term invests in largecap / bluechip stocks.

Midcap funds on other hand invests in midcap companies.

However, there is another category of funds – Large Midcap mutual funds that invests in diversified portfolio of largecap stocks and midcap stocks (both). Investors can opt for such funds instead of investing in both the category of funds.

Who can invest in Large and Midcap Mutual Funds?

Investors looking for stable growth (largecap) + aggressive exposure (midcap) can invest in these funds. Since these funds invests in midcap segment too, the portion of such portfolio is high risk.

Investors with low to moderate risk portfolio can avoid these funds and go for some of the Top Largecap Funds in India.

How we have filtered these Large and Midcap Funds in India?

Here is the selection criteria used.

1) Considered all funds that invests in largecap and midcap stocks. There are 30 funds which falls in this criteria.

2) Filtered funds that generated highest annualized returns of over 12% in the last 5 years. We could get 7 funds after this filter.

3) Filtered funds that have generated consistent rolling returns. We could get 3 mutual funds after this filter.

4) Funds that has AUM over Rs 100 Crores only are considered. Again we could get 3 mutual funds after applying this criteria

Best Large and Midcap Mutual Funds to invest in 2022

Here is the list of large-midcap mutual funds to invest.

#1 – Mirae Asset Emerging Equities Fund

#2 – Canara Robecco Emerging Equities Fund

#3 – Quant Largecap and Midcap Fund

Best Large and Midcap Funds in 2022

Let us get into more info about these funds

#1 – Mirae Asset Emerging Equities Fund

The objective of this fund is to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of large cap and midcap companies at the time of investment.

Currently this fund invests 58% in largecap, 38% in midcap and 4% in Smallcap stocks.

Fund Performance – Annualised Returns

  • Last 7 years – 17%
  • Last 5 years – 15%
  • Last 3 years – 18%
  • Last 1 year – 0.3%

Fund Performance – Rolling Returns

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 69% of the times
  • 1% to 12% returns – 30% of the times
  • Negative returns – 1% of the times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 94% of the times
  • 1% to 12% returns – 6% of the times
  • Negative returns – Zero times

This fund generated 22% annualized returns since inception. With lowest expense ratio of 0.7%, this is one of the Best Large and Midcap Mutual Fund to invest in 2022.

#2 – Canara Robecco Emerging Equities Fund

This fund’s objective is to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks.

Currently this fund invests 60% in largecap, 38% in midcap and 2% in Smallcap stocks.

Fund Performance – Annualised Returns

  • Last 7 years – 14.8%
  • Last 5 years – 12.8%
  • Last 3 years – 16.6%
  • Last 1 year – 1%

Fund Performance – Rolling Returns

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 58% of the times
  • 1% to 12% returns – 37% of the times
  • Negative returns – 4% of the times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 82.5% of the times
  • 1% to 12% returns – 17.5% of the times
  • Negative returns – Zero times

This fund generated 20.2% annualized returns since inception. Even this fund has lowest expense ratio of 0.57% and is one of the Top Large and Midcap Funds to invest.

#3 – Quant Largecap and Midcap Fund

This fund’s investment strategy is to provide capital appreciation by investing in a portfolio of Large and Midcap companies.

Currently this fund invests 57% in largecap and 42% in midcap stocks.

Fund Performance – Annualised Returns

  • Last 7 years – 14.4%
  • Last 5 years – 12.4%
  • Last 3 years – 19.8%
  • Last 1 year – 8.62%

Fund Performance – Rolling Returns

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 42% of the times
  • 1% to 12% returns – 52% of the times
  • Negative returns – 6% of the times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 70.4% of the times
  • 1% to 12% returns – 29.5% of the times
  • Negative returns – 0.1% of the times

This fund generated 17.2% annualized returns since inception. Even this fund has lowest expense ratio of 0.56% and is one of the Good Large and Midcap Mutual Funds to invest.

Also Read: Best Midcap Mutual Funds in 2022

Do you need to invest in all these funds?

You need not invest in all these funds. You can pick-up 1 fund from this category and invest them through SIP for medium to long term.

Should you invest in these funds if you have already invested in largecap and midcap funds?

If you have already invested separately in largecap mutual funds and midcap mutual funds, you can still consider 1 fund from this category. See what happened recently with Axis Mutual Fund Scam. In another incident SEBI fined PGIM AMC about inter-scheme transfers during credit crisis. Don’t depend on single fund.

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Suresh KP

11 comments

  • Savaee

    Hi Suresh Sir,
    Please review below portfolio. Investment is for medium to long term and aggressive risk taker approach with SIP of 5000 in each fund per month. If need to reduce the number of funds please suggest which funds can be eliminated and which new funds can be added instead to have proper diversification and inflation beating returns.

    1. UTI nifty next 50 index fund
    2. UTI nifty 50 index fund
    3. Motilal Oswal Nifty midcap 150 index fund
    4. Parag Parikh flexi cap fund
    5. PGIM India midcap fund
    6. Quant small cap fund

  • Harsh Patel

    Currently Mirae blue chip fund is having limitation of 2500 INR SIP but anyone can register multiple SIP for different dates of specific month. By these way anyone can increase their allocation in this fund. Is it good strategy to address 2.5k per month limit cap?

  • Roji

    Onetime investment good for the mentioned funds??

    • Roji, Since Nifty50 is at 16K now, you can invest lumpsum too. However, in long run, do only SIP unless you are investing when markets are correcting

  • veera

    Dear Sir

    Once Invested in N50 an NN50 index Funds , is it necessary to invest in active funds since the active funds follow the index and Exp Ratio also high and not beating the index all the year. That way how it is useful to invest in multiple active funds which overlaps 100%…

    • Hello Veera, Index investing gives stable returns as stock market always goes up in long term. However, the returns would be 10% to 12%. Active funds on other hand can beat index. Hence if you think you want to beat index too, add active funds. Yes there would be overlap and thats okay. No one is going to give negative marks for that. However, consider 1 active fund each in these categories

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