Best Large & Mid Cap Mutual Funds in India (2026)
Large & mid cap mutual funds invest in a combination of large-cap and mid-cap companies. As per SEBI regulations, these funds must allocate at least 35% of their assets to large cap stocks and at least 35% to mid cap stocks.
This structure provides exposure to the stability of large companies and the growth potential of mid-sized companies.
Top 10 Best Large & Mid Cap Mutual Funds in India Based on Returns, Ranks & AUM
AUM Growth of Large Mid Cap Mutual Funds - March 2026
In the past one month, the Bandhan Large & Mid Cap Fund Direct Plan Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹644.09 crore. This positions it as one of the top-performing Large Mid Cap mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | Action |
|---|---|---|---|
 Bandhan Large & Mid Cap Fund Current AUM: 14.78K Cr | +₹644.09 Cr | 4.72% | Invest |
 SBI Large & Midcap Fund Current AUM: 38.77K Cr | +₹633.96 Cr | 1.69% | Invest |
 ICICI Prudential Large & Mid Cap Fund Current AUM: 28.51K Cr | +₹609.26 Cr | 2.20% | Invest |
 Motilal Oswal Large and Midcap Fund Current AUM: 15.02K Cr | +₹225.39 Cr | 1.50% | Invest |
 Mirae Asset Large & Midcap Fund Current AUM: 42.94K Cr | +₹174.55 Cr | 0.40% | Invest |
Top Stock added by Large Mid Cap Mutual Funds - March 2026
Over the last month, Angel One Ltd Ordinary Shares has been added to the portfolios of 2 out of 33 Large Mid Cap mutual funds. This signals growing confidence in the stock’s long-term growth prospects among Large Mid Cap fund managers.
Fund | 1M Net Flow | Action |
|---|---|---|
Motilal Oswal Large and Midcap Fund Increased shares by 849.30% | +₹2.43K Cr | Invest |
SBI Large & Midcap Fund Increased shares by 761.43% | +₹967.36 Cr | Invest |
Top Stock sold by Large Mid Cap Mutual Funds - March 2026
In contrast, Larsen & Toubro Ltd has been sold by 5 of 33 Large Mid Cap mutual funds in the last one month. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.
Sector allocation of Large Mid Cap mutual funds - March 2026
Over the last 6 months, Large Mid Cap category has seen increased allocation towards Derivatives, Financial Services, Communication sectors and allocation in Tech, Consumer Defensive sectors has decreased
Sector | AUM |
|---|---|
 Financial Services Increased by 27.32%, in last 6M | 98.38K Cr |
 Consumer Cyclical Increased by 8.69%, in last 6M | 56.73K Cr |
 Industrial Increased by 8.53%, in last 6M | 42.03K Cr |
 Health Increased by 9.84%, in last 6M | 31.33K Cr |
 Basic Materials Increased by 5.11%, in last 6M | 30.04K Cr |
 Tech Decreased by 9.99%, in last 6M | 23.05K Cr |
 Consumer Defensive Decreased by 5.53%, in last 6M | 13.89K Cr |
 Energy Increased by 7.64%, in last 6M | 11.47K Cr |
 Communication Increased by 10.81%, in last 6M | 10.51K Cr |
 Utilities Increased by 8.90%, in last 6M | 9.02K Cr |
 Real Estate Increased by 2.38%, in last 6M | 5.83K Cr |
 Derivatives Increased by 100.00%, in last 6M | 2.75 Cr |
What Are Large & Mid Cap Mutual Funds?
Large & mid cap mutual funds are equity mutual fund schemes that invest in both large cap and mid cap companies.
According to SEBI’s mutual fund categorisation framework:
Large cap companies are the top 100 companies by market capitalisation
Mid cap companies are those ranked 101–250 by market capitalisation
Large & mid cap funds must invest at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks. The remaining portion may be allocated to either segment depending on the fund manager’s strategy.
These funds aim to combine the relative stability of large cap companies with the higher growth potential of mid cap companies.
Returns are market-linked and not guaranteed. Past performance does not guarantee future returns.
SEBI Rules for Large & Mid Cap Mutual Funds
SEBI introduced a standardised mutual fund categorisation framework in 2017 to ensure consistency across fund categories.
Under this framework:
- Large & mid cap mutual funds must invest at least 35% in large cap stocks
- At least 35% must be invested in mid cap stocks
- The remaining up to 30% can be allocated to either large cap or mid cap stocks
SEBI also mandates that each asset management company (AMC) can offer only one scheme per category.
The classification of large cap, mid cap, and small cap companies is updated every six months by AMFI based on market capitalisation data.
How Do Large & Mid Cap Mutual Funds Generate Returns?
Large & mid cap mutual funds generate returns primarily through capital appreciation and dividends from the companies they invest in.
Returns are influenced by several factors:
1. Large cap exposure
Large cap companies are typically established businesses with strong market positions. This portion of the portfolio may provide relative stability during market volatility.
2. Mid cap exposure
Mid cap companies are often in a growth phase and may offer higher long-term return potential compared with large cap companies.
3. Fund manager allocation
The remaining portion of the portfolio can be allocated between large and mid cap stocks depending on market conditions and investment strategy.
4. Dividend income
Companies may distribute dividends, which can either be reinvested in the growth option or distributed through the IDCW (Income Distribution cum Capital Withdrawal) option.
Returns are market-linked and depend on overall market performance.
Who Should Invest in Large & Mid Cap Mutual Funds?
Large & mid cap mutual funds may be suitable for investors who want a balance between stability and growth.
They may be appropriate for:
• Investors seeking exposure to both large and mid cap companies
• Long-term investors with an investment horizon of 5 years or more
• Investors comfortable with moderate market volatility
• Those looking for a diversified equity allocation within a single fund
Investors should evaluate their financial goals, risk tolerance, and investment horizon before investing.
Benefits of Large & Mid Cap Mutual Funds
Large & mid cap funds offer several structural advantages within an equity portfolio:
• Diversified market-cap exposure through both large and mid cap companies
• Balanced risk profile compared with pure mid cap funds
• Potential for long-term capital growth
• Participation in both mature and growing companies
These funds provide a blend of stability and growth within the equity mutual fund category.
Risks of Large & Mid Cap Mutual Funds
Like all equity mutual funds, large & mid cap funds carry certain risks.
Common risks include:
Market risk
Equity markets can fluctuate due to economic conditions, interest rate changes, and global events.
Mid cap volatility
Mid cap stocks may experience higher price volatility compared with large cap companies.
Fund manager risk
Performance may vary depending on the investment decisions and stock selection of the fund manager.
Allocation risk
The distribution between large and mid cap stocks can impact overall fund performance.
Investors should consider these risks and invest with a long-term investment horizon.
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