Which Large and Midcap fund to choose
The category of Large and Mid cap fund has been long in existence but as the mid cap were under performer for long duration this category did loose its steam and was out of flavour for long period. The Last few years growth in mid cap fuelled its growth. But he category had few leaders like Mirae asset large & Midcap fund and Kotak Equity opportunities fund which were found to be in lots of portfolio even now.
| Fund Name | Year Of Inception | Fund rating ( Crisil rated ) | Portfolio Size ( In Cr ) | Expense ratio | PE ratios | Turn over |
| Bandhan Core equity fund | 2005 | 5 | 4,394.78 | 1.89 | 21.22 | 71% |
| ICICI Pru large and midcap fund | 1998 | 5 | 13,117.39 | 1.72 | 18.99 | 58% |
| Quant large and midcap fund | 2006 | 5 | 2,535.89 | 1.96 | 20.52 | 179% |
| Motilal oswal large and Midcap equity fund | 2019 | 4 | 4,036.22 | 1.86 | 36.02 | 69% |
| HDFC large and midcap fund | 1994 | 4 | 18,691.62 | 1.7 | 19.06 | 2% |
| Kotak Equity opportunities fund | 2004 | 3 | 21,495.8 | 1.62 | 21.52 | 16% |
| SBI large and midcap fund | 1993 | 3 | 22,689.5 | 1.65 | 22.99 | 52% |
| Axis Growth Opportunities fund | 2018 | 3 | 12,096.56 | 1.7 | 27.56 | 23% |
| Canara Robeco emerging equities fund | 2005 | 2 | 21,508.53 | 1.63 | 21.64 | 19% |
| Mirae asset large & Midcap fund | 2010 | 2 | 34,974.46 | 1.55 | 19.30 | 52% |
Bandhan Core equity fund : Bandhan core equity is a 5 star rated fund, it has kept a very high turnover ratio, fee is bit on higher side , it has decent PE as on date.
ICICI Pru large and mid cap fund : ICICI Pru large and mid cap has a decent fund size, the expense ratio is also decent. Even the PE 18.99 shows the fund has wise stocks selection.
Quant large and mid cap fund : Quant is the smallest fund in the list , so has the highest expense ratio, highest turnover which is normal for quant AMC. Decent PE of 20.
Motilal oswal large and Midcap equity fund : Motilal Oswal large and midcap equity fund has small fund size , high expense ratio and turn over ratio , the fund seems the same as that of bandhan Core equity fund but the PE of 36.02 is very high.
HDFC large and mid cap fund :One of the oldest funds, HDFC Large and Mid cap fund has decent fund size, The expense ratio is normal in line with the fund size. The fund has kept its turnover at just 2% and a great PE of 19%.
Kotak Equity opportunities fund : Kotak Equity Opportunity fund is one of the biggest funds in the category. It used to be a favorite investment option a while back. Low expense ratio , low turnover and the PE seems in line with the category. But very low turnover in the stocks. The fund is 3 rated
SBI large and mid cap fund : Another giant fund in the category with low expense ratio. The fund is Crisil rated 3 at the moment, Decent turnover ratio of 52% and low expense ratio.The PE of 23 is a bit on the high side.
Axis Growth Opportunities fund : Axis Growth opportunity fund 3 star rated fund with decent fund size , expense ratio is also decent, high PE is seems quite dangerous. Low turnover ratio.
Canara Robeco emerging equities fund : Another Giant fund in the category is the Canara Robeco emerging equities fund, it is a 2 star rated fund. Expense ratio is Low. PE seems in line with the fund category. Turnover is low.
Mirae asset large & Midcap fund : The Mirae asset Large & mid cap fund has been the biggest fund now earning a rating of 2 star. Lowest Expense ratio. Low PE and turnover is decent.
Trailing Returns :
1 year Trailing Return :
Quant large and MidCap lead the category with 67.55% return,
Second quartile with 54.86% of Bandhan Core Equity fund and Motilal Oswal large and Midcap fund 51.39%.
Third quartile HDFC Large and mid cap fund , ICICI Pru Large & Mid Cap fund and Kotak Equity Opportunities fund
Fourth quartile was the lowest star rated fund Canara Robeco Emerging Equities and Mirae Asset Large and Midcap fund.
Last quartile for our discussion was taken by SBI large & MidCap fund and Axis growth Opportunities fund.
3 year Trailing Return :
Quant Large & Midcap were the leader again in the category with 28% return.
Second quartile range between 24-26% ICICI Pru Large & Midcap fund, Motilal Oswal Large & MidCap fund, HDFC Large & MidCap fund , Bandhan Core Equity fund
Third Quartile was taken by SBI Large & Midcap fund and Kotak Equity Opportunities fund.
Last in the category was the Axis growth Opportunities fund, Canara Robeco Emerging Equities and Mirae Asset Large & Midcap fund.
5 year Trailing Return :
Quant Large & Midcap Was the leader in 5 years trailing return
Next in Quartile for returns above to between 22-23% HDFC large & MidCap and ICICI Pru Large and Midcap
3rd quartile 21-22 % Kotak Equity Opportunities fund, Bandhan Core Equity fund, Axis growth Opportunities fund.
4th quartile of 20-21% SBI large & MidCap fund and Mirae Asset Large & Midcap fund
Last were below 20% Canara Robeco Emerging Equities
Motilal Oswal Large & MidCap fund was not launched
10 year Trailing Return :
Top quartile is maintained by Quant Large & Midcap fund and Mirae Asset Large & Midcap fund.
The 2nd quartile is Canara Robeco Emerging Equities and Kotak Equity Opportunities fund.
3rd quartile 15-17% SBI large & MidCap fund, Bandhan Core Equity fund, ICICI Pru Large & Mid Cap fund.
4th quartile HDFC Large & MidCap fund 14.46%.
Motilal Oswal Large & MidCap fund and Axis growth Opportunities fund do not have that long history.
General observation :
This category has been very unique in the sense, if we look at the returns in the last 1 or 3 years, the returns are very divergent but the they tend converge in range 15-17% in the 10 years trailing returns range, quant Large & Mid cap and Mirae Large & Mid cap being an outlier. Even the 5 years observation reveals some kind of same result of convergence. It is only that in recent years, after COVID years the divergence has increased, So , the stock picking may be one of the reasons for the same.
Rolling returns :
For rolling returns We have considered a 3 year period rolling returns starting from 2006.
Greater than 20% range
Motilal oswal Large & Midcap fund and Axis growth opportunities fund have consistency in rolling returns in 66% and 76% of times respectively . And they were never in a negative zone.
Next Mirae Asset large & Mid cap fund gave returns above 20% for 56% of times in 3 years rolling returns.
Quant large and Midcap fund was above 20% for 40 % times .
SBI large and mid cap fund and Canara Robeco emerging equities fund in 30% + range with canara Robeco close to 40% of times
ICICI Pru large and mid cap fund, Kotak Equity opportunities fund could maintain for just 20% of times
Bandhan Core equity fund and HDFC large and mid cap fund could maintain for just 10-20%
Returns >15% which makes more sense in the analysis
Motilal oswal Large & Midcap fund and Axis growth opportunities fund showed that they gave returns for more than 95% on times, so they gave very consistent returns.
Next Mirae Asset large & Mid cap fund which is above 15% of rolling returns for 80% of times and it was in the negative zone which can be ignored.
The Best performing fund in the trailing return reached just 49%,then it remained in the zone of 10-20% for a very small number of times. It was negative 7% of the time .
Kotak Equity opportunities fund and SBI large and mid cap fund above 15% mark for approx 46-47%, they delivered negative returns for 6% of times.
ICICI Pru Large and Midcap fund rolling return 38.54 % for 15% return category, it was in negative zone for close 6%
Bandhan Core equity was 33% times above 15% category but it was negative zone for 10% of times
HDFC Large and Mid cap fund was in this zone for just 28% of times and was negative for 10% of times.
12-15 % Zones
Bandhan Core equity and Kotak Equity opportunities was in this zone for 15% of times
ICICI Pru Large and Midcap, SBI large and mid cap fund and Canara Robeco emerging equities delivered results in this zone for close to 10% of times.
8-12% Rolling Returns
ICICI Pru Large and Midcap delivered returns in this zone for almost 26% of time.
HDFC Large and Mid cap, Bandhan Core equity delivered and SBI large and mid cap fund delivered for 16-18% of times.
Kotak Equity opportunities delivered it this zone for closer 11.5% of times
0-8% Rolling Return
HDFC Large and Mid cap delivered this result the most around 37% of times.
Quant Large and Mid cap fund, Bandhan Core equity they remained in this category 25%
ICICI Pru Large and Midcap and Kotak Equity opportunities fund delivered in this category for about 19-20% of times
SBI large & mid cap and Canara Robeco emerging equities delivered in the range of 18% of times
General Observation :
The relative new funds seem to be performing better than the old days fund.
The question to understand and answer is: why is that so? Does this affect the rolling returns charts as we understood above?
VS benchmark
Fund Name | 1-Yr Ret (%) | 3-Yrs Ret (%) | 5-Yrs Ret (%) | 10-Yrs Ret (%) |
| Quant Large & MidCap Gr | 67.28 | 27.97 | 27.51 | 21.39 |
| HDFC Large and Mid Cap Gr | 48.21 | 24.43 | 22.57 | 14.63 |
| ICICI Pru Large & MidCap Gr | 46.8 | 25.34 | 22.19 | 15.43 |
| Bandhan Core Equity Reg Gr | 55.49 | 24.24 | 21.5 | 16.15 |
| Motilal Oswal Large and MidCap Reg Gr | 52.39 | 24.76 | – | – |
| Canara Robeco Emerging Equities Reg Gr | 38.59 | 18.13 | 19.65 | 18.97 |
| Kotak Equity Opp Gr | 46.02 | 22.61 | 21.43 | 17.47 |
| Mirae Asset Large and Midcap Fund Reg Gr | 39.72 | 17.43 | 20.8 | 20.81 |
| SBI Large & MidCap Reg Gr | 34.51 | 20.02 | 20.34 | 16.55 |
| Axis Growth Opp Reg Gr | 36.54 | 18.67 | 22.36 | – |
| NIFTY LARGE MIDCAP 250 TRI | 45.08 | 21.11 | 21.57 | 16.98 |
1 year
Quant Large & MidCap Gr beat the index with the largest margin.
Next was Bandhan Core Equity Reg Gr and Motilal Oswal Large and MidCap Reg Gr
Third quartile HDFC Large and Mid Cap Gr and index ICICI Pru Large & MidCap Gr ,Kotak Equity Opp Gr which were close to
Canara Robeco Emerging Equities Reg Gr ,Mirae Asset Large and Midcap Fund Reg Gr ,SBI Large & MidCap Reg Gr and Axis Growth Opp Reg Gr and Bandhan Core Equity Reg Gr
3 Year
Quant Large & MidCap Gr was agin way above the index 27.97
Next quartile was ICICI Pru Large & MidCap Gr,Bandhan Core Equity Reg Gr , Motilal Oswal Large and MidCap Reg Gr , HDFC Large and Mid Cap Gr with 24-26%
Third quartile was Kotak Equity Opp Gr with 22-23%
Canara Robeco Emerging Equities Reg Gr , Mirae Asset Large and Midcap Fund Reg Gr ,SBI Large & MidCap Reg Gr and Axis Growth Opp Reg Gr could not beat the index
5 Years
Quant Large & MidCap Gr remains the leader in beating the index above 27%
Next quartile was HDFC Large and Mid Cap Gr , ICICI Pru Large & MidCap Gr, Axis Growth Opp Reg Gr were very close to index in range 22-23%
Bandhan Core Equity Reg Gr ,Kotak Equity Opp Gr , Mirae Asset Large and Midcap Fund Reg Gr , SBI Large & MidCap Reg Gr, Canara Robeco Emerging Equities Reg Gr were either same as index or could not deliver beyond index
Motilal Oswal Large and MidCap Reg Gr were not present 5 years ago.
10 Years
Quant Large & MidCap Gr was the leader in this category for even 10 years and delivered way above the index at 21-22% range.
Second quartile was Mirae Asset Large and Midcap Fund Reg Gr 20-21%
Third quartile was Kotak Equity Opp Gr , Canara Robeco Emerging Equities Reg Gr 17-19%
HDFC Large and Mid Cap Gr, ICICI Pru Large & MidCap Gr, Bandhan Core Equity Reg Gr and SBI Large & MidCap Reg Gr could not deliver results beyond the index.
Ratios:
Fund Name | Alpha | Beta | Std deviation | Sharpe Ratio | Sortino Ratio |
| Bandhan Core equity fund | 6.67 | 0.91 | 13.22 | 1.45 | 2.41 |
| ICICI Pru large and midcap fund | 8.76 | 0.83 | 12.35 | 1.64 | 2.67 |
| Quant large and midcap fund | 8.58 | 1.01 | 15.58 | 1.44 | 2.49 |
| Motilal oswal large and Midcap equity fund | 7.63 | 0.87 | 13.64 | 1.44 | 2.34 |
| HDFC large and midcap fund | 6.78 | 0.94 | 13.36 | 1.47 | 2.54 |
| Kotak Equity opportunities fund | 4.53 | 0.85 | 11.97 | 1.35 | 2.24 |
| SBI large and midcap fund | 4.36 | 0.86 | 12.63 | 1.27 | 1.99 |
| Axis Growth Opportunities fund | 1.67 | 0.90 | 14.39 | 0.97 | 1.6 |
| Canara Robeco emerging equities fund | 1.06 | 0.87 | 12.25 | 1.06 | 2.05 |
| Mirae asset large & midcap fund | 0.76 | 0.89 | 12.44 | 1.05 | 1.81 |
Bandhan Core equity fund :
Bandhan Core equity displays good alpha and sharpe ratio. Beta and standard deviation shows the fund is a bit volatile. Sortino ratio is great .
ICICI Pru large and mid cap fund :
ICICI Pru Large and Midcap fund has shown highest alpha and even sharpe ratio is great. Fund has very low beta and standard deviation. The sortino ratio is also great.
Quant large and mid cap fund :
Quant Large and MidCap fund also has large Alpha and but has a sharpe ratio which is average. The Beta and std. deviation shows the fund is quite volatile. Great Sortino ratio in the category.
Motilal oswal large and Midcap equity fund :
The fund has shown great Alpha good returns above benchmark, with a very decent sharpe ratio inline with the category. Low beta and average std deviations. Sortino ratio is on the lower side.
HDFC large and mid cap fund :
The Alpha for the fund is good and the sharpe ratio is average. Beta is high shows fund move with the market variation and std deviation is on the lower side. Sortino ratio is also average.
Kotak Equity opportunities fund :
The alpha generation is not that high but not bad too and sharpe ratio is also low. The Beta and std deviation are low showing the fund is quite stable. The Sortino ratio is low and shows in the market downturn the fund is not good.
SBI large and mid cap fund :
The alpha generation is not that high again but not bad too and the very low sharpe ratio shows the fund is taking too much risk to generate the alpha. Beta is low and std deviation tells the fund is trying to keep its volatility low as per the market. But in the downturn the Sortino number shows that the fund is not able to save itself.
Axis Growth Opportunities fund :
Very low alpha generation and risk adjusted returns also are low. The fund seems quite volatile in nature, beta is ok but the std deviation is high. Sortino is against the fund.
Canara Robeco emerging equities fund :
Very low alpha , sharpe ratio also low. But the fund seems to be very stable, beta is low and std deviation is not high. Sortino ratio is low.
Mirae asset large & midcap fund :
Low alpha and low Sharpe ratio. The fund seems quite stable with low beta and std deviation. Very low sortino shows the fund is not able stay put in a downward market.
Fund managers Longevity :
Bandhan Core equity fund : There have been recent changes in the fund manager after its acquisition, but seem like they have worked in its favor.
ICICI Pru large and mid cap fund : ICICI had recent fund manager changes for this fund, 2 fund managers, who have considerable experience in the industry, have managed the fund for about 2 years. They are also managing a lot of other funds.
Quant large and mid cap fund : Fund is being managed by 3 fund managers who have been managing the fund for about 7 years.
Motilal oswal large and Midcap equity fund : Fund is being managed by 4 fund managers, of which one is the CIO and other fund manager is the 19 years experienced.
HDFC large and mid cap fund : Being managed by 2 fund managers for the last 4 years who have industry experience of about more than 10 years.
Kotak Equity opportunities fund : It has been managed by CIO Harsh Upadhaya for the last 12 years, and a new fund manager was added 2 years ago.
SBI large and mid cap fund : Being managed by 2 fund managers. The same fund manager for the last 8 years.
Axis Growth Opportunities fund : The fund is being managed by 3 fund managers , one of its earlier fund managers has entered the team . But the team is experienced but has started managing the fund recently.
Canara Robeco emerging equities fund : Managed by 2 fund managers . One of the fund managers has been stable for the last 8 years.
Mirae asset large & midcap fund : The fund is being managed by 2 fund managers. One of them is the CIO of Mirae.
Portfolio :
Fund Name | Strategy | Top Sectors | Top Stock | No of Stocks | Caps Allocation |
| Bandhan Core equity fund | Growth | Financial : 20.31% Services : 10.89% Others : 10.19% | Others :5.83 % ICICI Bank : 4.6% Others : 4.12% HDFC Bank : 3.9% | 103 | Large Cap : 41.47% Mid Cap : 38.49% Small Cap : 13.1% Others : 6.94% |
| ICICI Pru large and midcap fund | Value | Financial : 23% Energy : 12.02% Automobile : 10.63% | ICICI Bank Ltd.: 6.22 HDFC Bank Ltd.: 4.83 Maruti Suzuki India Ltd. : 3.99 | 91 | Large Cap : 51.21% Mid Cap : 38.93% Small Cap : 6.33% Others : 3.56% |
| Quant large and midcap fund | Value- momentum | Financial : 24.01 Energy : 16.03 Metals & Mining: 12.35 Consumer Staples: 8.45 | Reliance Industries Ltd. : 9.45% HDFC Bank Ltd.% : 7.45 Bharat Heavy Electricals Ltd. : 7.25 Adani Power Ltd. : 6.25% | 31 | Large Cap : 44.7% Mid Cap : 37.51% Small Cap : 3.59% Others : 14.22% |
| Motilal oswal large and Midcap equity fund | Growth | Services : 21.51% Capital Goods : 21.39% Financial :15.47% Construction: 9.44% | Zomato Ltd. : 6.64% Prestige Estates Projects Ltd.: 6.14% Trent Ltd.: 6.06 % Kalyan Jewellers India Ltd.: 5.4% | 29 | Large Cap : 35.19% Mid Cap: 35.54% Small Cap :23.88% Others : 5.38% |
| HDFC large and midcap fund | Value | Financial : 30.77% Healthcare : 9.84% Automobile: 7.74% Energy : 7.72% | HDFC Bank Ltd. : 5.38% ICICI Bank Ltd. : 3.38 Others: 2.54 Indusind Bank Ltd.: 2.07 | 186 | Large Cap: 50.03% Mid Cap : 34% Small Cap: 8.48% Others: 4.27% |
| Kotak Equity opportunities fund | Growth | Financial : 16.3% Capital Goods : 15.97% Automobile : 13.02% Energy : 10.94% | State Bank of India : 4.09% Bharat Electronics Ltd.: 3.78% Maruti Suzuki India Ltd. : 3.61% HDFC Bank Ltd. : 3.29% | 66 | Large Cap : 52.05% Mid Cap : 41.87% Small Cap : 5.19% Others : 0.89% |
| SBI large and midcap fund | GARP | Financial : 20.36% Healthcare : 10.21% Automobile : 8.81% Technology : 8.13% | HDFC Bank Ltd.: 4.25% Reliance Industries Ltd. : 3.78% ICICI Bank Ltd. : 3.54% State Bank of India : 3.26% | 82 | Large Cap : 42.04% Mid Cap : 38.25% Small Cap : 15.35% Others : 4.33% |
| Axis Growth Opportunities fund | Growth | Financial : 15.26% Capital Goods : 14.62% Services : 12.29% | Torrent Power Ltd. : 4.28% ICICI Bank Ltd. : 2.98 Others : 2.83% | 123 | Large Cap : 38.94% Mid Cap : 34.78% Small Cap : 3.8% Others : 22.46% |
| Canara Robeco emerging equities fund | Growth – momentum | Financial : 20.01% Automobile : 16.12% Services: 13.72% Capital Goods: 10.96% | ICICI Bank Ltd. : 6.27% Bharat Electronics Ltd.: 4.3% UNO Minda Ltd. : 3.81% Trent Ltd. : 3.64% | 73 | Large Cap : 49.33% Mid Cap : 37.33% Small Cap : 10.75% Others : 2.59% |
| Mirae asset large & midcap fund | Growth | Financial : 24.25% Healthcare :9.96% Energy : 8.68% Automobile : 8.26% | HDFC Bank Ltd.: 5.74% Axis Bank Ltd.: 3.17% Larsen & Toubro Ltd.: 3.12 Kotak Mahindra Bank Ltd. : 3.12% | 88 | Large Cap : 52.15% Mid Cap : 36.76% Small Cap: 9.94% Others : 1.14% |
Common theme in the fund is the financial orientation for large cap stocks and the energy sector being added. Motilal oswal has built a portfolio which is very different from the category. Quant is working with its concentrated portfolios. Few funds have added capital goods and automobiles to be aligned with the economy cycle. Service has been added to build defence.
Conclusion :
This segment has also shown that the funds which were the top performing in the category are not able to deliver results. And the investors who are looking to invest in this category , again my advise take help of your advisor or wealth manager
You can reach us to help you design the bets fund portfolio , so that you get best results according to your need and assessment.( you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
Do set you asset allocation and understand which fund would suit you the best
