Top 5 large and mid cap funds

Since last many years investors were aware of three key categories in equity funds, i.e Large-cap funds, Mid-cap funds and small-cap funds. However, SEBI has came up with a circular in October 2017 which changed the structure of the mutual fund industry.

SEBI has defined some new categories which are quiet interesting and helpful for the investors. Going ahead, SEBI has also mandated the investing methodology and asset allocation requirements for all the categories which is totally in the interest of the investors as this will help them make better investment decisions.

Large and mid-cap funds is one of these categories under which many funds are now categorised following the recategorization guideline. These funds are expected to invest 35 per cent of their assets in the large cap stocks and 35 per cent in the mid-cap stocks. These funds are suitable for moderate risk investors as these are aggressive with the mid-caps and at the same time similar portion is invested in the large-caps which cushions the mid-cap risk.

The phenomena has attracted many investors and even in the recent market rally, these funds have performed well. We have analysed the last one month returns of the category to find out the return chart toppers. In the past one month, the category has garnered an average return of 6.7 per cent whereas the benchmark indices NIFTY 50 and NIFTY mid-cap 100 has offered returns of 5.2 per cent and 8.5 per cent, respectively. According to our data analysis, below are the top 5 schemes in the large and mid-cap category.