Balancing Act: How large and midcap mutual funds pick the best stocks across categories
Large & midcap mutual fund schemes, a relatively new category that SEBI formed in 2018, aims to achieve growth with lower volatility by combining the established and emerging businesses
Introduced by the capital market regulator, the Securities and Exchange Board of India (SEBI) in its 2018 re-categorisation exercise, large & midcap mutual fund schemes are mandated to invest at least 35 percent each in largecap and midcap stocks. The remaining portion is invested in smallcap stocks, debt instruments and cash equivalents. These schemes aim to achieve growth with lower volatility by combining the established as well as emerging companies. Their allocation to smallcap stocks has also been significant. As per the latest data, the average allocation to smallcap stocks by the category was about seven percent. These schemes adjust the large-, mid- and small-cap portions based on the market dynamics within the prescribed limits. Here are the top largecap, midcap and smallcap stocks held by the 26 large & midcap schemes. Portfolio data as of February 28, 2023. Source: ACEMF.
2/16
HDFC Bank M-CAP type: Largecap No. of large & midcap schemes that held the stock: 26
3/16
ICICI Bank M-CAP type: Largecap No. of large & midcap schemes that held the stock: 24
4/16
Infosys M-CAP type: Largecap No. of large & midcap schemes that held the stock: 24
5/16
Reliance Industries M-CAP type: Largecap No. of large & midcap schemes that held the stock: 24
6/16
State Bank Of India M-CAP type: Largecap No. of large & midcap schemes that held the stock: 24
7/16
Ashok Leyland M-CAP type: Midcap No. of large & midcap schemes that held the stock: 18
8/16
The Federal Bank M-CAP type: Midcap No. of large & midcap schemes that held the stock: 16
9/16
Max Financial Services M-CAP type: Midcap No. of large & midcap schemes that held the stock: 15
10/16
The Indian Hotels Company M-CAP type: Midcap No. of large & midcap schemes that held the stock: 14
11/16
Bharat Forge M-CAP type: Midcap No. of large & midcap schemes that held the stock: 13
12/16
Gujarat State Petronet M-CAP type: Smallcap No. of large & midcap schemes that held the stock: 7
13/16
Ajanta Pharma M-CAP type: Smallcap No. of large & midcap schemes that held the stock: 5
14/16
Carborundum Universal M-CAP type: Smallcap No. of large & midcap schemes held the stock: 5
15/16
JB Chemicals & Pharmaceuticals M-CAP type: Smallcap No. of large & midcap schemes that held the stock: 5
16/16
Cholamandalam Financial Holdings M-CAP type: Smallcap No. of large & midcap schemes that held the stock: 4
