Large & midcap funds: Rs 1 lakh grew to at least Rs 1,54,760 in these 3 top rated investment schemes

Three top-rated mutual funds in the ‘large and midcap’ category have rewarded investors with returns as high as 58 per cent in just one year. One-time investments of Rs 1,00,000 in these funds a year ago has essentially turned into at least Rs 1,54,760-1,58,040 in just 12 months, according to data from mutual fund industry body AMFI.

All three hold five-star ratings by credit rating agency Crisil and have outperformed Dalal Street barometers by a wide margin.

The three funds are:

Bandhan Core Equity Fund
Motilal Oswal Large and Midcap Fund
HDFC Large and Mid Cap Fund

Here are some of the key things to know about these ‘large & midcap’ schemes:

Bandhan Core Equity Fund

Assets under management: Rs 3883.5 crore

Net asset value: Rs 125.1

Minimum investment (lump sum): Rs 1,000

Minimum investment (SIP): Rs 100

The fund has provided a return of 58 per cent in a year, sharply outperforming the category benchmark Nifty LargeMidcap 250 total return index’s 49.4 per cent return.

To put this into perspective, an individual having invested a lump sum amount of Rs 1 lakh in the scheme a year ago would have built a corpus of Rs 1,58,237 today.

The largest holdings of the fund, which has invested nearly 94 per cent in equities, include HDFC Bank, ICICI Bank, Infosys, L&T, Signature Global and Zomato.

The expense ratio of the scheme also stands better than the category average of 0.8 per cent, at 0.7 per cent.

Motilal Oswal Large and Midcap Fund

Assets under management: Rs 3,477 crore

Net asset value: Rs 27.5

Minimum investment (lump sum): Rs 500

Minimum investment (SIP): Rs 500

The fund has provided a return of 57.9 per cent in a year, again sharply outperforming the category benchmark.

An investor having parked Rs 1 lakh in a scheme a year ago would be sitting on a corpus of Rs 1,57,850 today.

The top stocks in the fund, which has a nearly 98 per cent holding in equities, include Trent, Kalyan Jewellers, Prestige Estates, Global Health and Zomato.

The expense ratio of the scheme stands at 0.5 per cent.

HDFC Large and Midcap Fund

Assets under management: Rs 16,757 crore

Net asset value: Rs 299.4

Minimum investment (lump sum): Rs 100

Minimum investment (SIP): Rs 100

The fund has provided a return of 54.8 per cent in a year.

An investor having put Rs 1 lakh in the scheme a year ago would have created a corpus of Rs 1,54,760 today.

The expense ratio of the scheme is at 0.82 per cent.

The top holdings of the fund, nearly 97 per cent of which is dedicated to equities, include HDFC Bank, ICICI Bank, Infosys, Axis Bank, Reliance Industries, SBI and L&T.

What is the ‘large & midcap’ category of mutual funds?

The capital market regulator has introduced this category in the open-ended segment. Fund houses are required to deploy at least 35 per cent of their corpus in equity and equity-related securities in largecap companies, and a minimum 35 per cent in equity and equity-related instruments of midcap companies in this category.

Amid buoyancy on Dalal Street, the ‘large & midcap’ category clocked the second-highest inflow of 3,156.6  crore in February, according to AMFI. 

What is the expense ratio?

The expense ratio, a crucial factor in mutual fund investments, determines the percentage of a fund's assets deducted annually to cover management fees and operating expenses.

Why is it important?

The expense ratio plays a significant role in determining the overall profitability of the scheme. Investors should carefully evaluate this ratio as lower expense ratios indicate higher returns for investors.