Heard about large-cap and mid-cap funds? But, how do they differ (large-cap vs mid-cap) from each other? This is often a confusing category for an investor when planning to invest in Equity Funds. Nevertheless, one good thing is— we are here to clear your confusion! So, let us first understand these terms individually and in a bit detail.
A large cap fund is a type of fund where investment is made in majorly with companies of large Market capitalization. These are essentially large companies with large businesses. Large cap stocks are also commonly referred to as blue chip stocks. One essential fact about the large cap is that information regarding such large companies is easily available in publications (magazines/newspapers).
Mid-cap funds invest in mid-sized companies. Stocks held in mid-cap funds are the companies that are still developing. These are mid-size corporates that lie between large and small cap stocks. They rank between the two extremes on all important parameters like company size, client base, revenues, team size etc.
Large caps are shares of well-established companies that have a strong hold on the market and are usually considered as safe investments. They are companies that have a market capitalization (MC= no of shares issued by the company X market price per share) of more than INR 10,000 crore. Mid caps could be companies with a market capitalization of INR 500 Cr to INR 10,00 Cr.
From a standpoint of the investor, the Investing period of mid-cap funds should be much higher than large-caps due to the nature of the companies.
Recently sebi has classified how AMC's to classify largecaps and midcaps.
Market Capitalization | Description |
---|---|
Large cap company | 1st to 100th company in terms of full market capitalization |
Mid cap company | 101st to 250th company in terms of full market capitalization |
Small cap company | 251st company onwards in terms of full market capitalization |
Large-cap funds invest in those firms that have more possibility of showing year on year steady growth and high profits, which in turn also offers stability over a time. These stocks give steady returns over a long period of time. When an investor invests in mid caps for a long term, they prefer those companies that they think will be tomorrow’s runway successes. Also, the greater the number of investors in mid-cap stocks, the more it tends to grow in size. Since the price of large caps has increased, large institutional investors like Mutual Funds and Foreign Institutional Investors (FIIS) are increasingly investing in mid-caps these days.
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Infosys, Wipro, Unilever, Reliance Industries, ITC, SBI, ICICI, L&T, Birla, etc., are a few blue chip companies in India. These are the firms that have established themselves well in the Indian market and are leading players.
Some of the most emerging, mid-cap companies in India are- Blue Star Ltd., Bata India Ltd., City Union Bank, IDFC Ltd., PC Jeweller Ltd., etc.
Large cap funds | mid cap funds |
---|---|
Invest in stocks of well-established companies | Invests in stocks of developing companies |
Market Capitalization- INR 1000 Cr | Market Capitalization- INR 500- 1000 Cr |
Less Volatile | High Volatile |
Companies eg- Wipro, Infosys. Unilever, Reliance Industries, etc. | Companies eg- Bata India, PC Jeweller, City Union Bank, Blue Star, etc. |
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) IDBI India Top 100 Equity Fund Growth ₹44.16
↑ 0.05 ₹655 9.2 12.5 15.4 21.9 12.6 JM Core 11 Fund Growth ₹19.1551
↑ 0.08 ₹290 0.9 5.3 -6.1 17.8 18.9 24.3 DSP TOP 100 Equity Growth ₹466.422
↑ 2.71 ₹6,323 -0.1 7.1 3.9 17.2 18.5 20.5 Invesco India Largecap Fund Growth ₹67.92
↑ 0.53 ₹1,558 1.9 9.1 1.8 15.5 18.6 20 Bandhan Large Cap Fund Growth ₹76.304
↑ 0.47 ₹1,928 3.2 10 3 15.3 17.8 18.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23 Research Highlights & Commentary of 5 Funds showcased
Commentary IDBI India Top 100 Equity Fund JM Core 11 Fund DSP TOP 100 Equity Invesco India Largecap Fund Bandhan Large Cap Fund Point 1 Bottom quartile AUM (₹655 Cr). Bottom quartile AUM (₹290 Cr). Highest AUM (₹6,323 Cr). Lower mid AUM (₹1,558 Cr). Upper mid AUM (₹1,928 Cr). Point 2 Established history (13+ yrs). Established history (17+ yrs). Oldest track record among peers (22 yrs). Established history (15+ yrs). Established history (19+ yrs). Point 3 Rating: 3★ (upper mid). Top rated. Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 12.61% (bottom quartile). 5Y return: 18.92% (top quartile). 5Y return: 18.47% (lower mid). 5Y return: 18.63% (upper mid). 5Y return: 17.84% (bottom quartile). Point 6 3Y return: 21.88% (top quartile). 3Y return: 17.82% (upper mid). 3Y return: 17.23% (lower mid). 3Y return: 15.54% (bottom quartile). 3Y return: 15.35% (bottom quartile). Point 7 1Y return: 15.39% (top quartile). 1Y return: -6.06% (bottom quartile). 1Y return: 3.85% (upper mid). 1Y return: 1.83% (bottom quartile). 1Y return: 2.95% (lower mid). Point 8 Alpha: 2.11 (upper mid). Alpha: -4.38 (bottom quartile). Alpha: 3.29 (top quartile). Alpha: 1.96 (lower mid). Alpha: -0.58 (bottom quartile). Point 9 Sharpe: 1.09 (top quartile). Sharpe: -0.28 (bottom quartile). Sharpe: 0.33 (upper mid). Sharpe: 0.12 (lower mid). Sharpe: 0.03 (bottom quartile). Point 10 Information ratio: 0.14 (bottom quartile). Information ratio: 0.41 (lower mid). Information ratio: 0.84 (top quartile). Information ratio: 0.71 (upper mid). Information ratio: 0.17 (bottom quartile). IDBI India Top 100 Equity Fund
JM Core 11 Fund
DSP TOP 100 Equity
Invesco India Largecap Fund
Bandhan Large Cap Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) TATA Mid Cap Growth Fund Growth ₹423.47
↑ 2.39 ₹4,985 4.7 11.2 -2.2 20.2 25 22.7 BNP Paribas Mid Cap Fund Growth ₹99.152
↑ 0.53 ₹2,213 3.3 8.9 -1.6 19.3 24.3 28.5 IDBI Midcap Fund Growth ₹28.4598
↑ 0.18 ₹345 2.7 8.3 -3.4 18.7 22.3 29.1 Taurus Discovery (Midcap) Fund Growth ₹118.6
↑ 0.51 ₹133 3.1 10.6 -5.8 17.3 20.8 11.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 13 Aug 25 Research Highlights & Commentary of 4 Funds showcased
Commentary TATA Mid Cap Growth Fund BNP Paribas Mid Cap Fund IDBI Midcap Fund Taurus Discovery (Midcap) Fund Point 1 Highest AUM (₹4,985 Cr). Upper mid AUM (₹2,213 Cr). Lower mid AUM (₹345 Cr). Bottom quartile AUM (₹133 Cr). Point 2 Oldest track record among peers (31 yrs). Established history (19+ yrs). Established history (8+ yrs). Established history (30+ yrs). Point 3 Rating: 2★ (lower mid). Rating: 3★ (upper mid). Not Rated. Top rated. Point 4 Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 24.98% (top quartile). 5Y return: 24.30% (upper mid). 5Y return: 22.28% (lower mid). 5Y return: 20.76% (bottom quartile). Point 6 3Y return: 20.19% (top quartile). 3Y return: 19.32% (upper mid). 3Y return: 18.69% (lower mid). 3Y return: 17.27% (bottom quartile). Point 7 1Y return: -2.19% (upper mid). 1Y return: -1.64% (top quartile). 1Y return: -3.36% (lower mid). 1Y return: -5.78% (bottom quartile). Point 8 Alpha: -5.65 (bottom quartile). Alpha: -4.02 (upper mid). Alpha: -2.67 (top quartile). Alpha: -5.34 (lower mid). Point 9 Sharpe: -0.25 (bottom quartile). Sharpe: -0.18 (upper mid). Sharpe: -0.07 (top quartile). Sharpe: -0.20 (lower mid). Point 10 Information ratio: -1.22 (lower mid). Information ratio: -1.28 (bottom quartile). Information ratio: -0.95 (top quartile). Information ratio: -1.20 (upper mid). TATA Mid Cap Growth Fund
BNP Paribas Mid Cap Fund
IDBI Midcap Fund
Taurus Discovery (Midcap) Fund
Investors need to determine their mid-term & large term goals and build their Portfolio accordingly. Your Financial goals create a big impact on kind of investments you make. So, invest smartly!