Power of Compounding: With Rs 1,000 monthly SIP, this Large & Mid Cap MF scheme has built nearly Rs 37,000 corpus in just 2 years
With lump sum investments of Rs 10,000, three funds—Motilal Oswal Large & Midcap Fund, Bandhan Core Equity Fund and Invesco India Large & Mid Cap Fund—have rewarded investors with annualised returns of 32-40 per cent in just two years, according to data from the AMFI website.
Did you know a special category of mutual fund (MF) schemes invests at least 35 per cent each in large-cap and mid-cap stocks? Mutual fund schemes in this category are known as ‘Large & Mid Cap’ funds. In mutual funds, while the first 100 companies by market capitalisation are considered large-cap, and the next 150 are considered mid-cap companies. This means that these mutual fund schemes ensure 70 per cent of investment in the country's largest 250 companies by market value. Read on to learn in detail how some of the top Large & Mid Cap MF schemes have performed through lump sum and SIP routes over the past two years. For the sake of simplicity, we are interpreting the available data in terms of Rs 1,000 monthly SIPs or Rs 10,000 lump sum investments.
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Top 3 Large & Mid Cap MF Schemes in 2 Years
As of November 29, in the past two years, the top-performing schemes in this category are Motilal Oswal Large and Midcap Fund, Bandhan Core Equity Fund and Invesco India Large & Mid Cap Fund.
With a lump sum investment of Rs 10,000, the schemes have delivered annualised returns as follows:
- Motilal Oswal Large and Midcap Fund: Rs 19,654 (40.1%)
- Bandhan Core Equity Fund: Rs 17,720 (33.1%)
- Invesco India Large & Mid Cap Fund: Rs 17,706 (33%)
Can you guess the next 4 top Large & Mid Cap funds?
- HSBC Large & Midcap Fund: Rs 17,518 (32.3%)
- UTI Large & Mid Cap Fund: Rs 17,092 (30.7%)
- Nippon India Vision Fund: Rs 16,781 (29.5%)
- Baroda BNP Paribas Large and Mid Cap Fund: Rs 16,704 (29.2%)
7. Baroda BNP Paribas Large and Mid Cap Fund
This fund has delivered an annualised return of 33.9 per cent in two years, as of November 29.
To put this into perspective, a monthly SIP of Rs 1,000 started in this fund two years ago would have created a corpus of Rs 54,593 now.
6. Nippon India Vision Fund
This Large and Mid Cap fund has created a corpus of Rs 32,864 in two years through the SIP route.
In other words, a Rs 1,000 monthly SIP in this fund has accumulated a sum of Rs 32,864.
5. UTI Large & Mid Cap Fund
With an SIP of Rs 1,000 per month, this scheme has accumulated wealth to the tune of Rs 33,265 in two years.
4. HSBC Large & Midcap Fund
This scheme has created a sum of Rs 34,175 in two years, with a monthly SIP of Rs 1,000.
3. Invesco India Large & Mid Cap Fund
This scheme has delivered an annualised return of 40.6 per cent in two years.
An SIP of Rs 1,000 per month started two years ago has become worth RS 34,931 today.
2. Bandhan Core Equity Fund
This fund has accumulated wealth of approximately Rs 33,979 in two years.
1. Motilal Oswal Large and Midcap Fund
This Large and Mid Cap fund has rewarded investors with an annualised return of 47 per cent in two years, creating a sum of Rs 36,786 through a monthly SIP of Rs 1,000.