Top Large and Mid-Cap Funds for Investment in February 2025
Large and mid-cap funds are types of mutual funds that invest in both large and medium-sized companies. SEBI (Securities Exchange Board of India) classifies companies based on their market size, helping investors balance stability and growth in their investments. Both schemes are open-ended equity schemes that always keep at least 35% of their total assets in large-cap companies and another 35% in mid-cap stocks.
Mid-cap funds must invest at least 35% of their money in mid-cap stocks, which makes them risky. However, they are still safer than pure mid-cap funds that invest approx. 65% in mid-cap stocks. At the same time, they are riskier than large-cap funds, which focus mostly on stable large companies. The 35% investment in large-cap stocks gives them some stability. The risk level of these funds also depends on how the remaining 30% of the money is invested.
The fund manager has the right to select where to invest the money. If the fund manager finds large-cap stocks attractive, he invests there. If he believes mid-cap and small-cap stocks will grow, he puts money into them. These choices can make the investment either more or less risky.
Mutual fund advisors suggest these schemes will grow over time. Some will focus more on large-cap stocks, while some will invest in mid-cap stocks. This helps investors pick schemes based on their risk level. If you choose safer investments, go for schemes with more large-cap stocks. If you are willing to take more risk for higher returns, choose schemes with more mid-cap stocks.
Top large and mid-cap mutual funds to invest in February 2025:
- Axis Growth Opportunities Fund
- Mirae Asset Large & Midcap Fund (SIP capped at Rs 25,000)
- Canara Robeco Emerging Equities Fund
- Sundaram Large and Midcap Fund
- Kotak Equity Opportunities Fund
- Quant Large & Mid Cap Fund
If an investor wants to invest in these schemes, he can consider investing in these top large and mid-cap mutual fund schemes. From these schemes, the Axis Growth Opportunities Fund has been in the top third quartile in the past month, before that, the scheme had been in the top fourth quartile. Mirae Asset Large & Midcap Fund has been in the top fourth quartile for the past 10 months. Canara Robeco Emerging Equities Fund has been in the top third quartile for the past 10 months, earlier the scheme had been in the top fourth quartile for the last six months. Sundaram Large and Midcap Fund has been in the top fourth quartile in the last month, before that, the scheme had been in the top third quartile.
These schemes are a good choice for investors who are ready to take risks and want to invest in mid-cap stocks. Depending on market conditions and the fund manager’s strategy, the investment may be in large-cap or mid-cap stocks. You should consider these schemes only if you are ready to take on higher risk.
