Invest in These Best LargeCap & MidCap Funds to Invest in January 2025
Lrage-cap and mid-cap funds are types of equity mutual funds that invest in companies based on their size. Large-cap funds focus on large and well-established companies, on the other hand, mid-cap funds invest in medium-sized companies.
Large-cap funds invest at least 80% of their assets in the best 100 companies in India by market capitalization, and mid-cap companies are required to invest in companies that are between 101 and 250 in market capitalisation. These schemes invest a minimum of 35% of total assets in large-cap companies and a minimum of 35% of total assets in mid-cap companies.
The 35% compulsory investments in mid-cap funds make them risky, and they are less risky as compared to the pure mid-cap schemes that invest up to 65% in mid-cap stocks. Investing 35% in large-cap companies gives some stability to the fund. It is still risky as compared to pure large-cap schemes. The remaining 30% of the fund’s money also raises questions about where it will be invested.
The fund manager has the right to decide where should investors should invest the money. If the fund manager thinks that large-cap space is attractive, then he can invest in large-cap stocks. If he believes mid-cap and small-cap stocks are likely to grow, then he can invest in them. However, these investments can either increase or decrease the risk in these schemes.
Here is the list of the best large & mid-cap mutual funds to invest in January 2025:
- Axis Growth Opportunities Fund
- Quant Large & Mid Cap Fund
- Canara Robeco Emerging Equities Fund
- Sundaram Large and Midcap Fund
- Kotak Equity Opportunities Fund
- Mirae Asset Large & Midcap Fund (SIP capped at Rs 25,000)
In these mid-cap and small-cap funds, Axis Growth Opportunities Fund has been in the top fourth quartile for the past four months. Before that, the scheme had been in the third quartile. Canara Robeco Emerging Equities Fund has been in the top third quartile for the past nine months. Before that, the scheme had been in the top fourth quartile for the past six months. Sundaram Large & Mid Cap Fund has been in the top third quartile for the past three months. Earlier, the scheme had been in the top fourth quartile. Mirae Asset Emerging Bluechip Fund has been in the top fourth quartile for the past nine months.
