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These 14 midcap winners make it to largecap hotlist for best returns

Though largecap schemes must hold 80 percent in largecap stocks, they can invest the remaining in cash or midcap and smallcap stocks. Midcap stocks tend to spice up returns for largecap funds, thus helping them outperform the benchmarks

January 22, 2023 / 01:16 PM IST
Active large-cap funds have increasingly found it difficult to beat benchmark indices consistently. One reason is that they are mandated to invest a large chunk of their corpus (80 percent) in large-cap stocks (the 100 largest market capitalisation stocks). The outperformance of these schemes lies in how efficiently the fund managers deploy the remaining 20 percent of the assets into the stocks belonging to midcap and smallcap space and other asset classes. As per the latest data, the large-cap category allocated 85 percent, 8.2  percent and 1.3 percent to large, mid and small-cap stocks, respectively. These cherry-picked mid and smallcap stocks tend to spice up the return of largecap funds thus, in turn, likely to outperform the benchmarks. Given the less aggressive nature of largecap funds, these mid and smallcap stocks are picked not only to deliver better returns during market rallies but also to fall less in downtrends. Here are the most popular midcap stocks among the 31 active largecap funds. Portfolio data as of December 31, 2022. Source: ACEMF.
1/15
Active large-cap funds have increasingly found it difficult to beat benchmark indices consistently. One reason is that they are mandated to invest a large chunk of their corpus (80 percent) in large-cap stocks (the 100 largest market capitalisation stocks). The outperformance of these schemes lies in how efficiently the fund managers deploy the remaining 20 percent of the assets into the stocks belonging to midcap and smallcap space and other asset classes. As per the latest data, the large-cap category allocated 85 percent, 8.2  percent and 1.3 percent to large, mid and small-cap stocks, respectively. These cherry-picked mid and smallcap stocks tend to spice up the return of largecap funds thus, in turn, likely to outperform the benchmarks. Given the less aggressive nature of largecap funds, these mid and smallcap stocks are picked not only to deliver better returns during market rallies but also to fall less in downtrends. Here are the most popular midcap stocks among the 31 active largecap funds. Portfolio data as of December 31, 2022. Source: ACEMF.
TVS Motor Company No. of large-cap funds that held the stock: 8 Sample of large-cap funds that held the stock: JM Large Cap, ICICI Pru Bluechip and HSBC Large Cap
2/15
TVS Motor Company
Number of large-cap funds that held the stock: 8
Sample of large-cap funds that held the stock: JM Large Cap, ICICI Pru Bluechip and HSBC Large Cap
Gland Pharma No. of large-cap funds that held the stock: 8 Sample of large-cap funds that held the stock: Franklin India Bluechip, Invesco India Largecap and Kotak Bluechip Fund
3/15
Gland Pharma
Number of largecap funds that held the stock: 8
Sample of largecap funds that held the stock: Franklin India Bluechip, Invesco India Largecap and Kotak Bluechip Fund
Mphasis No. of large-cap funds that held the stock: 8 Sample of large-cap funds that held the stock: Franklin India Bluechip, Canara Rob Bluechip Equity and UTI Mastershare
4/15
Mphasis
Number of largecap funds that held the stock: 8
Sample of largecap funds that held the stock: Franklin India Bluechip, Canara Rob Bluechip Equity and UTI Mastershare
United Breweries No. of large-cap funds that held the stock: 7 Sample of large-cap funds that held the stock: Bank of India Bluechip, Franklin India Bluechip and Kotak Bluechip Fund
5/15
United Breweries
Number of largecap funds that held the stock: 7
Sample of largecap funds that held the stock: Bank of India Bluechip, Franklin India Bluechip and Kotak Bluechip Fund
The Indian Hotels Company No. of large-cap funds that held the stock: 7 Sample of large-cap funds that held the stock: Nippon India Large Cap, PGIM India Large Cap and Bank of India Bluechip
6/15
The Indian Hotels Company
Number of largecap funds that held the stock: 7
Sample of largecap funds that held the stock: Nippon India Large Cap, PGIM India Large Cap and Bank of India Bluechip
Jubilant FoodWorks No. of large-cap funds that held the stock: 7 Sample of large-cap funds that held the stock: Indiabulls Blue Chip, UTI Mastershare and Mirae Asset Large Cap
7/15
Jubilant FoodWorks
Number of largecap funds that held the stock: 7
Sample of largecap funds that held the stock: Indiabulls Blue Chip, UTI Mastershare and Mirae Asset Large Cap
Cummins India No. of large-cap funds that held the stock: 6 Sample of large-cap funds that held the stock: SBI BlueChip, Tata Large Cap and UTI Mastershare
8/15
Cummins India
Number of largecap funds that held the stock: 6
Sample of largecap funds that held the stock: SBI BlueChip, Tata Large Cap and UTI Mastershare
Zee Entertainment Enterprises No. of large-cap funds that held the stock: 6 Sample of large-cap funds that held the stock: Nippon India Large Cap, Baroda BNP Paribas Large Cap and Edelweiss Large Cap
9/15
Zee Entertainment Enterprises
Number of largecap funds that held the stock: 6
Sample of largecap funds that held the stock: Nippon India Large Cap, Baroda BNP Paribas Large Cap and Edelweiss Large Cap
Sona BLW Precision Forgings No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: SBI BlueChip, Mirae Asset Large Cap and Sundaram Large Cap
10/15
Sona BLW Precision Forgings
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: SBI BlueChip, Mirae Asset Large Cap and Sundaram Large Cap
Hindustan Petroleum Corporation No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: HDFC Top 100, Mirae Asset Large Cap and SBI BlueChip
11/15
Hindustan Petroleum Corporation
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: HDFC Top 100, Mirae Asset Large Cap and SBI BlueChip
Ashok Leyland No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: Sundaram Large Cap, PGIM India Large Cap and Franklin India Bluechip
12/15
Ashok Leyland
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: Sundaram Large Cap, PGIM India Large Cap and Franklin India Bluechip
Motherson Sumi Wiring India No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: Franklin India Bluechip, SBI BlueChip and UTI Mastershare
13/15
Motherson Sumi Wiring India
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: Franklin India Bluechip, SBI BlueChip and UTI Mastershare
Max Financial Services No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: Mirae Asset Large Cap, Nippon India Large Cap and Canara Rob Bluechip Equity
14/15
Max Financial Services
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: Mirae Asset Large Cap, Nippon India Large Cap and Canara Rob Bluechip Equity
Kajaria Ceramics No. of large-cap funds that held the stock: 5 Sample of large-cap funds that held the stock: Taurus Largecap Equity, Mirae Asset Large Cap and Tata Large Cap Fund.
15/15
Kajaria Ceramics
Number of largecap funds that held the stock: 5
Sample of largecap funds that held the stock: Taurus Largecap Equity, Mirae Asset Large Cap and Tata Large Cap Fund.