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Large-Cap vs Mid-Cap Mutual Funds

Updated on August 11, 2025 , 20329 views

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.

Large Cap Funds

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

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-Cap Vs Mid-Cap

Large Cap v/s Mid cap

Market Capitalization

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

Investing Period

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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Companies

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.

Investing Benefits: Large Cap VS Mid Cap

  • Companies that invest in mid-cap have more potential for growth than large-cap
  • Mid-cap funds often tend to outperform large cap funds
  • Large companies are well-established which means that they have more consistent Income. That is why the greatest benefits that large cap stocks have in their favour is the stability they can provide to one’s investments.
  • Large cap funds are less volatile than mid-cap funds
  • During the downturn in the market/business, investors flock to large cap firms as they are a safer investment.

Best Large Cap Funds FY 25 - 26

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
IDBI India Top 100 Equity Fund Growth ₹44.16
↑ 0.05
₹6559.212.515.421.912.6
JM Core 11 Fund Growth ₹19.1551
↑ 0.08
₹2900.95.3-6.117.818.924.3
DSP TOP 100 Equity Growth ₹466.422
↑ 2.71
₹6,323-0.17.13.917.218.520.5
Invesco India Largecap Fund Growth ₹67.92
↑ 0.53
₹1,5581.99.11.815.518.620
Bandhan Large Cap Fund Growth ₹76.304
↑ 0.47
₹1,9283.210315.317.818.7
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

CommentaryIDBI India Top 100 Equity FundJM Core 11 FundDSP TOP 100 EquityInvesco India Largecap FundBandhan Large Cap Fund
Point 1Bottom 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 2Established history (13+ yrs).Established history (17+ yrs).Oldest track record among peers (22 yrs).Established history (15+ yrs).Established history (19+ yrs).
Point 3Rating: 3★ (upper mid).Top rated.Rating: 2★ (bottom quartile).Rating: 3★ (lower mid).Rating: 2★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y 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 63Y 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 71Y 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 8Alpha: 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 9Sharpe: 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 10Information 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

  • Bottom quartile AUM (₹655 Cr).
  • Established history (13+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.61% (bottom quartile).
  • 3Y return: 21.88% (top quartile).
  • 1Y return: 15.39% (top quartile).
  • Alpha: 2.11 (upper mid).
  • Sharpe: 1.09 (top quartile).
  • Information ratio: 0.14 (bottom quartile).

JM Core 11 Fund

  • Bottom quartile AUM (₹290 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 18.92% (top quartile).
  • 3Y return: 17.82% (upper mid).
  • 1Y return: -6.06% (bottom quartile).
  • Alpha: -4.38 (bottom quartile).
  • Sharpe: -0.28 (bottom quartile).
  • Information ratio: 0.41 (lower mid).

DSP TOP 100 Equity

  • Highest AUM (₹6,323 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 18.47% (lower mid).
  • 3Y return: 17.23% (lower mid).
  • 1Y return: 3.85% (upper mid).
  • Alpha: 3.29 (top quartile).
  • Sharpe: 0.33 (upper mid).
  • Information ratio: 0.84 (top quartile).

Invesco India Largecap Fund

  • Lower mid AUM (₹1,558 Cr).
  • Established history (15+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 18.63% (upper mid).
  • 3Y return: 15.54% (bottom quartile).
  • 1Y return: 1.83% (bottom quartile).
  • Alpha: 1.96 (lower mid).
  • Sharpe: 0.12 (lower mid).
  • Information ratio: 0.71 (upper mid).

Bandhan Large Cap Fund

  • Upper mid AUM (₹1,928 Cr).
  • Established history (19+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 17.84% (bottom quartile).
  • 3Y return: 15.35% (bottom quartile).
  • 1Y return: 2.95% (lower mid).
  • Alpha: -0.58 (bottom quartile).
  • Sharpe: 0.03 (bottom quartile).
  • Information ratio: 0.17 (bottom quartile).

Best Mid Cap Funds FY 25 - 26

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
TATA Mid Cap Growth Fund Growth ₹423.47
↑ 2.39
₹4,9854.711.2-2.220.22522.7
BNP Paribas Mid Cap Fund Growth ₹99.152
↑ 0.53
₹2,2133.38.9-1.619.324.328.5
IDBI Midcap Fund Growth ₹28.4598
↑ 0.18
₹3452.78.3-3.418.722.329.1
Taurus Discovery (Midcap) Fund Growth ₹118.6
↑ 0.51
₹1333.110.6-5.817.320.811.3
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

CommentaryTATA Mid Cap Growth FundBNP Paribas Mid Cap FundIDBI Midcap FundTaurus Discovery (Midcap) Fund
Point 1Highest AUM (₹4,985 Cr).Upper mid AUM (₹2,213 Cr).Lower mid AUM (₹345 Cr).Bottom quartile AUM (₹133 Cr).
Point 2Oldest track record among peers (31 yrs).Established history (19+ yrs).Established history (8+ yrs).Established history (30+ yrs).
Point 3Rating: 2★ (lower mid).Rating: 3★ (upper mid).Not Rated.Top rated.
Point 4Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 24.98% (top quartile).5Y return: 24.30% (upper mid).5Y return: 22.28% (lower mid).5Y return: 20.76% (bottom quartile).
Point 63Y return: 20.19% (top quartile).3Y return: 19.32% (upper mid).3Y return: 18.69% (lower mid).3Y return: 17.27% (bottom quartile).
Point 71Y return: -2.19% (upper mid).1Y return: -1.64% (top quartile).1Y return: -3.36% (lower mid).1Y return: -5.78% (bottom quartile).
Point 8Alpha: -5.65 (bottom quartile).Alpha: -4.02 (upper mid).Alpha: -2.67 (top quartile).Alpha: -5.34 (lower mid).
Point 9Sharpe: -0.25 (bottom quartile).Sharpe: -0.18 (upper mid).Sharpe: -0.07 (top quartile).Sharpe: -0.20 (lower mid).
Point 10Information 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

  • Highest AUM (₹4,985 Cr).
  • Oldest track record among peers (31 yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 24.98% (top quartile).
  • 3Y return: 20.19% (top quartile).
  • 1Y return: -2.19% (upper mid).
  • Alpha: -5.65 (bottom quartile).
  • Sharpe: -0.25 (bottom quartile).
  • Information ratio: -1.22 (lower mid).

BNP Paribas Mid Cap Fund

  • Upper mid AUM (₹2,213 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: High.
  • 5Y return: 24.30% (upper mid).
  • 3Y return: 19.32% (upper mid).
  • 1Y return: -1.64% (top quartile).
  • Alpha: -4.02 (upper mid).
  • Sharpe: -0.18 (upper mid).
  • Information ratio: -1.28 (bottom quartile).

IDBI Midcap Fund

  • Lower mid AUM (₹345 Cr).
  • Established history (8+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 22.28% (lower mid).
  • 3Y return: 18.69% (lower mid).
  • 1Y return: -3.36% (lower mid).
  • Alpha: -2.67 (top quartile).
  • Sharpe: -0.07 (top quartile).
  • Information ratio: -0.95 (top quartile).

Taurus Discovery (Midcap) Fund

  • Bottom quartile AUM (₹133 Cr).
  • Established history (30+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 20.76% (bottom quartile).
  • 3Y return: 17.27% (bottom quartile).
  • 1Y return: -5.78% (bottom quartile).
  • Alpha: -5.34 (lower mid).
  • Sharpe: -0.20 (lower mid).
  • Information ratio: -1.20 (upper mid).

Conclusion

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!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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