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Top mutual funds to invest in large cap and mid cap stocks

Top mutual funds to invest in large cap and mid cap stocks
  • Are you looking to invest in top mutual funds in the large and mid cap category? Here is the list of top 5 picks for you.
  • Large cap funds are generally a must in one’s portfolio as large cap companies, typically, have strong corporate practices that make them safe and transparent as well as, more often than not, provide good growth.
  • Mid cap companies are the ones with ₹5,000 to 10,000 crore market valuation that have the potential to outperform the market.
Large-cap funds and mid-cap funds are typically known to be a must in every investor’s mutual fund portfolio. Large cap companies have strong corporate practices that make them safe and transparent as well as, more often than not, provide good growth.

Mid cap companies have the potential to give outsized returns compared to large cap stocks. Such companies generally have more focused business models and do not diversify as large cap companies. Further, their market capitalisation keeps on increasing as more investors spot the opportunity which makes it even more valuable stock.

Now there are hundreds of mutual funds in these categories which makes it more confusing to choose from. So here are the best five funds in both categories with top ranking and consistent returns over five years.

Top 5 large cap funds

5 year return

Canara Robeco Bluechip Equity Fund

17.98%

Axis Bluechip Fund

18.27%

BNP Paribhas Large Cap Fund

14.67%

Kotak Bluechip Fund

15.26%

Mirae Asset Large Cap Fund

16.92%

Data source: ET Money

Further, mid cap companies are typically the ones with ₹5,000 to 10,000 crore market valuation. Moreover midcap stocks have been outperforming large cap companies for some time.

These could be some of the fastest-growing companies in India and are, at one stage, likely to become large cap companies.

The sooner you get in these stocks, the more your investments can grow.

Hence, some investment in their growth cycles is a must in every investor’s portfolio.

However, not every midcap stock will be a success story. And, one may not have a information, or the analysis needed, to identify the real wealth creators.

So, it may be wise to invest in mutual funds where a manager is appointed to pick out the gems from the pile of stones.

Top 5 mid cap funds

5 year return

PGIM India Midcap Opportunities Fund

22.05%

Quant Mid Cap Fund

20.96%

Axis Midcap Fund

21.71%

BNP Paribhas Midcap Fund

17.56%

Edelweiss Mid Cap Fund

20.05%

Data source: ET Money

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