The large and midcap mutual fund category has delivered fairly well over the past 12-18 months. SEBI regulations on the allocation for such schemes are well-known. So, 35 percent of the assets must be invested in large-cap stocks and an equal proportion in mid-caps. The balance 30 percent is left to the fund manger's discretion. Most funds in the category have an almost equal split of large and midcap stocks in the portfolio. Some also take cash calls to shield the portfolio during market falls.
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Mahindra Manulife Top 250 Nivesh Yojana delivered nearly 56 percent returns over the past one year, according to data from Valueresearch. The top holdings of the fund are mostly in large-cap stocks. Midcaps follow a bit later. The scheme has not taken any concentrated exposure to individual stocks. Financials dominate the sectoral allocations. The fund has a blend of defensive and cyclical holdings. It manages assets of Rs 476 crore and charges an expense ratio of 0.68 percent for its direct plan.
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HDFC Large & Midcap Fund comes next in the list with 54.5 percent returns in the last one year. The scheme has a little over 52 percent of its assets in large-caps and the rest in midcaps. It also holds cash & equivalents in excess of 9 percent of its assets. Exposure to stocks is diffused. The fund manages Rs 3,499 crore in assets and charges 1.39 percent for the direct plan.
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ICICI Prudential Large and Midcap fund gave 54 percent returns over a one-year period. It invests about 53 percent of its portfolio in large-caps and the rest in midcaps. The fund does not shy away from taking high exposure to individual stocks in its top-10 holdings. It manages assets of Rs 3,671 crore and charges 1.31 percent for its direct plan.
Motilal Oswal Large and Midcap Fund delivered 52.9 percent returns in the last one year. The fund has rather high holdings in financials. Exposure to top stocks is also reasonably high. The split of large and midcaps is similar to most others in the category. It remains fully invested at most times. The fund has Rs 983 crore in assets and levies an expense ratio of 0.61 percent.
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Axis Growth Opportunities Fund has managed 52.4 percent returns in the last one year. Unlike other funds in the category, this scheme invests more in midcaps, in excess of 60 percent of the portfolio. Exposure to individual stocks in the top few holdings is also high. It manages Rs 5,006 crore in assets and charges 0.50 percent as expense ratio. Its top sector holdings are technology, financials and chemicals.
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These funds are not our recommendations. The large and midcap category is high on the risk quotient. Some investors may as well consider investing separately in large and midcap categories for better returns. Seek an investment advisor or go over our MC30 mutual funds list to construct your portfolio with top-quality schemes.
