One of the equity categories that investors often ignore but can be a wealth creator in the long term is the large and midcap category. Funds in this category invest 35% each in large cap and midcap companies. These funds invest in the top 250 companies listed in the market. Therefore, these funds, basically focused on equity, can help you achieve your investment objectives.
Specialty of Large and Mid Cap Funds
Large and Mid Cap Funds are easy to build a portfolio. In case of cap sorting, fund managers use a combination of top-down and bottom-up approaches. Its core is the allocation of 35-35% of the fund in large-cap and mid-cap segments. The remaining 30% of the portfolio can be kept by the fund manager according to different market capitalization and its attractiveness.
The fund manager of these funds also has the flexibility to adopt an opportunistic approach to investments in small-caps. , whose goal is to generate additional profits for investors. Proof of this can be seen in ICICI Prudential Large and Midcap Fund. The fund has a track record of over 25 years and has given excellent returns to investors.
Beats the benchmark by a wide margin
If one were to look into the fund’s history in July 1998 (the If I had invested a lump sum of Rs 1 lakh in this fund in the beginning), that amount would have become Rs 72.15 lakh by November 30, 2023, i.e. the return would have been at the rate of 18.34% CAGR. This also means that a lump sum investment of Rs 1.5 lakh would have become more than Rs 1.08 crore at present. During this period, a similar investment in the fund’s benchmark Nifty Large Midcap 250 TRI has given a CAGR return of 14.64%, which is only Rs 32.18 lakh. This clearly shows how ICICI Fund has outperformed the benchmark by a huge margin.
This is the historical return
If someone invests Rs 10,000 in ICICI Large and Mid Cap Fund. If a monthly SIP of Rs 1000 had been done, the investment amount would have been Rs 30.50 lakh, whereas after adding the returns, the total value would have increased to Rs 4.03 crore by November 30, 2023, i.e. returns at the rate of CAGR of 16.91%. The same investment in the benchmark has given returns at the rate of CAGR of only 15.04%. In the last one and three years, this fund has given returns of 20.56% and 27.66% respectively. During the same period, the benchmark has given returns of 19.92% and 23.34%, while the average returns of large cap and mid cap category have been 18.83% and 21.96% respectively.
During the last 6 months, some major large and Mid Cap Fund Returns:
ICICI Prudential Large & Mid Cap Fund: 22.15%
Miray Asset Large & Midcap Fund: 21.04%
LIC MF Large & Mid Cap Fund: 20.55%
Baroda BNP Paribas Large & Mid Cap Fund: 20.36%
Edelweiss Large & Mid Cap Fund: 19.58%
Assets managed by the fund
ICICI Prudential Large The focus of End Mid Cap Fund is currently on stocks and sectors that will benefit from economic recovery. This targeted approach ensures that your investments are in line with promising trends and poised for future growth. The AUM (Assets Under Management) of the fund is Rs 9,636.74 crore.
