Large and midcap mutual funds have shown significant long-term returns, with several schemes transforming a monthly investment of ₹10,000 into over ₹30 lakh in a decade. According to a report by Value Research, the Invesco India Large & Mid Cap Fund led the category with a 10-year annualised SIP return of 19.02%, increasing the investment value to ₹32.64 lakh.
Fund Rankings
Following Invesco, the Quant Large & Mid Cap Fund achieved a return of 18.11%, growing the same investment to ₹31.07 lakh. The Bandhan Large & Mid Cap Fund closely followed with an 18.05% return, bringing the investment to ₹30.96 lakh. Lastly, the ICICI Prudential Large & Mid Cap Fund rounded out the top four with a return of 17.67%, resulting in an investment value of ₹30.31 lakh. These funds are required to allocate at least 35% each in large-cap and mid-cap stocks, providing investors with diversified exposure.
Performance Comparison
The average annualised return of large and midcap funds over the past decade exceeded 14%, outperforming the BSE LargeMidCap Total Return Index, which returned 13.2% during the same period. The Invesco fund manages assets worth ₹11,164 crore and has an expense ratio of 0.56%. The Quant fund, with ₹3,450 crore in assets, has an expense ratio of 0.61%. The Bandhan fund, managing ₹18,783 crore, has the lowest expense ratio at 0.45%, while the ICICI Prudential fund is the largest among the four, with its assets not specified in the report.
The strong performance of these mutual funds may influence investor sentiment towards equity markets, particularly in the large and midcap segments. As investors seek higher returns, there could be increased inflows into these funds, impacting stock prices of the underlying companies.
Watch for upcoming quarterly earnings reports from these funds, which may provide further insight into their performance and management strategies.