10 mid-cap stocks that large-cap MFs love to hold for higher returns
The outperformance of large-cap mutual fund schemes lies in, among other things, how efficiently fund managers manage the remaining 20 percent portion that they have to invest in small- and mid-cap stocks. These 10 mid-caps stocks tend to spice up the return of large-cap funds thus, in turn, likely to outperform the benchmarks.
The tide has turned for large-cap funds. After struggling to beat their benchmark indices between 2018-2022, large-cap funds started to outrun post 2022. And thanks to the great equity run in 2023, 2/3rd of actively managed large-cap funds outperformed their benchmark indices, as per ACEMF data. Their secret? The way fund managers manage the 20% of their corpus which they are allowed to invest outside the large-cap basket of stocks. Here, fund managers opportunistically aim to invest in small- and mid-cap stocks to earn the returns kicker. As per the latest data, the largecap category held about Rs 2.7 lakh crore, Rs 26,447 crore and Rs 5,720 crore in the largecap, midcap and smallcap stocks respectively. These cherry-picked mid and smallcap stocks tend to spice up the return of large-cap funds thus, in turn, likely to outperform the benchmarks. Here are the most popular mid-cap stocks among the 31 active large-cap funds. Portfolio data as of March 31, 2024. Source: ACEMF.
Samvardhana Motherson International Number of large-cap funds holding the stock: 12 Sample of large-cap funds holding the stock: DSP Top 100 Equity, Groww Largecap and SBI BlueChip
3/11
Hero MotoCorp Number of large-cap funds holding the stock: 10 Sample of large-cap funds holding the stock: JM Large Cap, ICICI Pru Bluechip and Bank of India Bluechip
Info Edge (India) Number of large-cap funds holding the stock: 9 Sample of large-cap funds holding the stock: Taurus Large Cap, Axis Bluechip and UTI Large Cap
5/11
The Indian Hotels Company Number of large-cap funds holding the stock: 8 Sample of large-cap funds holding the stock: Nippon India Large Cap, Baroda BNP Paribas Large Cap and PGIM India Large Cap
6/11
Cummins India Number of large-cap funds holding the stock: 7 Sample of large-cap funds holding the stock: Groww Largecap, SBI BlueChip and Union Largecap
The Phoenix Mills Number of large-cap funds holding the stock: 6 Sample of large-cap funds holding the stock: Motilal Oswal Large Cap, HSBC Large Cap and Bandhan Large Cap
8/11
PI Industries Number of large-cap funds holding the stock: 6 Sample of large-cap funds holding the stock: Invesco India Largecap, Tata Large Cap and ITI Large Cap
9/11
Sona BLW Precision Forgings Number of large-cap funds holding the stock: 6 Sample of large-cap funds holding the stock: Union Largecap, SBI BlueChip and Sundaram Large Cap
FSN E-Commerce Ventures Number of large-cap funds holding the stock: 6 Sample of large-cap funds holding the stock: Mirae Asset Large Cap, Tata Large Cap and Mahindra Manulife Large Cap
11/11
Zydus Lifesciences Number of large-cap funds holding the stock: 6 Sample of large-cap funds holding the stock: Kotak Bluechip, HSBC Large Cap and Union Largecap
