Best Large & Mid Cap Mutual Funds in India 2026: Top 10 & Guide
What Large & Mid Cap mutual funds are, who should invest, key risks, and the top 10 funds with returns and risk data.
Large and mid cap mutual funds invest in a mix of established large companies and faster-growing mid-sized ones, with SEBI requiring at least 35% of assets in each segment. They suit long-term investors who can take moderate to high risk. This guide covers who should invest, benefits, risks, and the top 10 funds from our data.
Key takeaways
- SEBI guidelines require these funds to invest at least 35% of total assets each in large cap and mid cap stocks.
- Large caps add stability, while mid caps add growth potential.
- They carry moderate to high risk and suit a long investment horizon.
- Mid cap holdings add volatility and lower liquidity, and results depend on the fund manager.
- The top 10 funds below are ranked by an internal score, with return and risk numbers shown.
What are large and mid cap mutual funds?
These are equity funds that invest in both large and mid cap companies. Large caps are typically the top 100 companies by market capitalisation, known as established market leaders with strong fundamentals, financials and a solid track record. Mid caps are in their growth phase with smaller market capitalisations and the potential to grow quickly, but they are also highly volatile.
Who should invest in large and mid cap mutual funds?
- Investors who want to benefit from mid cap growth while keeping large cap stability.
- Investors with a larger risk appetite, since these are equity funds with moderate to high risk.
- Long-term investors, as equity investments typically perform best over the long run.
What should you consider before investing?
Risk profile
Large caps offer stability but mid caps can be highly volatile, so short-term performance can swing and calls for higher risk tolerance.
Investment goals
Know your goals, investment horizon and approach before choosing.
Fund strategy and allocation
Funds must hold 35% in each segment, but some lean towards mid caps while others stay conservative with more large caps.
Performance track record
Compare performance with peers and the benchmark index, and study how the fund did in the past.
Costs and charges
Expense ratios, exit loads and other fees affect returns, so compare them across funds.
Benefits of large and mid cap mutual funds
- Balanced growth and stability: large caps provide steady performance and mid caps add higher growth potential.
- Diversification across market caps, sectors and industries prevents over-concentration.
- Long-term wealth creation: large caps support steady growth while mid caps can deliver strong capital appreciation over the years.
Risks of large and mid cap mutual funds
- Market volatility: mid cap companies are more sensitive to downturns.
- Liquidity risk: mid cap stocks are generally less liquid, which can make portfolio changes harder in volatile markets.
- Reliance on the fund manager: stock selection, allocation decisions and biases can affect returns.
- Macroeconomic and regulatory risks: slowdowns, policy changes or sector disruptions can affect company performance.
How are large and mid cap mutual funds taxed?
These are equity mutual funds, so equity fund taxation rules apply to them. Dividends are added to your income and taxed as per your income tax slab. Capital gains rules and rates change, so check the current rules or speak to a tax advisor.
Top 10 Large & Mid Cap mutual funds ranked by an internal score
These are the top 10 Large & Mid Cap funds from our data, ranked by Invo Wealth's internal fund-quality score. The score itself is not shown, only the return and risk numbers behind it. A "--" means the fund has not completed that period or the data is unavailable. Some entries are different plan or option variants of the same scheme (for example Direct vs Regular, or Growth vs Bonus), so their figures can look similar.
Returns across 6 months to 5 years
Performance data as of 5 September 2026.
| Fund | 6M CAGR | 1Y CAGR | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|
| ICICI Prudential Large & Mid Cap Fund | 7.44% | 4.61% | 15.40% | 16.12% |
| Bandhan Large & Mid Cap Fund | 11.84% | 6.41% | 17.30% | 15.84% |
| Motilal Oswal Large and Midcap Fund - Direct Plan - Growth | 40.58% | 13.49% | 23.09% | 18.90% |
| Motilal Oswal Large and Midcap Fund - Regular Plan - Growth | 39.21% | 12.38% | 21.66% | 17.36% |
| Invesco India Large & Mid Cap Fund | 32.27% | 8.92% | 21.88% | 16.36% |
| HDFC Large & Mid Cap Fund | 10.67% | 4.76% | 13.61% | 15.25% |
| UTI Large & Mid Cap Fund | 5.74% | 5.17% | 14.66% | 13.68% |
| Nippon India Vision Large & Mid Cap Fund - Regular Plan - Bonus Option | 6.57% | 2.56% | 14.38% | 12.92% |
| Nippon India Vision Large & Mid Cap Fund - Regular Plan - GROWTH Option | 6.57% | 2.56% | 14.38% | 12.92% |
| SBI LARGE & MIDCAP FUND | 1.51% | 3.88% | 12.03% | 12.98% |
Risk and consistency metrics
| Fund | ISIN | Volatility | Max drawdown (3Y) | Sortino ratio |
|---|---|---|---|---|
| ICICI Prudential Large & Mid Cap Fund | INF109K01431 | 15.63% | -15.09% | 0.75 |
| Bandhan Large & Mid Cap Fund | INF194K01524 | 17.20% | -18.36% | 0.81 |
| Motilal Oswal Large and Midcap Fund - Direct Plan - Growth | INF247L01999 | 23.07% | -26.06% | 0.97 |
| Motilal Oswal Large and Midcap Fund - Regular Plan - Growth | INF247L01965 | 23.07% | -26.25% | 0.88 |
| Invesco India Large & Mid Cap Fund | INF205K01247 | 20.02% | -19.00% | 1.05 |
| HDFC Large & Mid Cap Fund | INF179KA1RQ7 | 17.99% | -18.71% | 0.50 |
| UTI Large & Mid Cap Fund | INF789F01869 | 16.48% | -17.86% | 0.64 |
| Nippon India Vision Large & Mid Cap Fund - Regular Plan - Bonus Option | INF204K01398 | 17.78% | -17.02% | 0.57 |
| Nippon India Vision Large & Mid Cap Fund - Regular Plan - GROWTH Option | INF204K01406 | 17.78% | -17.02% | 0.57 |
| SBI LARGE & MIDCAP FUND | INF200K01305 | 15.41% | -14.54% | 0.45 |
Check how each fund's volatility and drawdown compare with its CAGR, as mid cap exposure can add swings.
How to invest in Large & Mid Cap mutual funds
You can invest in these funds using the Invo Wealth app. Sign up, get complete portfolio insights and start investing in mutual funds that actually suit you.
Conclusion
Large and mid cap funds blend stability with growth for long-term equity investors. Choose based on strategy, costs and how much risk you can accept.
Frequently asked questions
What are large and mid cap mutual funds?
They are equity funds that invest in a mix of large and mid cap companies. SEBI guidelines require them to invest at least 35% of total assets each in large cap and mid cap stocks.
Who should invest in large and mid cap funds?
Investors who want mid cap growth with large cap stability, can take moderate to high risk, and have a long-term horizon.
What are the risks of large and mid cap funds?
Market volatility, lower liquidity in mid cap stocks, dependence on the fund manager's choices, and macroeconomic or regulatory changes can all affect returns.
How are dividends from large and mid cap funds taxed?
Dividends are added to your income and taxed as per your applicable income tax slab.
How can I invest in large & mid cap mutual funds?
You can invest through a SIP or a lump sum. To invest in these funds, you can use the Invo Wealth app: sign up, get portfolio insights and start investing.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. This article is for education only and is not investment advice. Past performance does not guarantee future returns. Invo Wealth is an AMFI-registered mutual fund distributor (ARN-368528).