Mutual funds in the Large & Midcap category invest in large and mid-cap stocks based on the fund’s investment strategy. While the large-cap segment offers stable returns, the mid-cap segment can yield higher returns but also comes with higher risks. Did you know that this large- and mid-cap mutual fund has generated the highest returns in the last 10 years, increasing from 100,000 to 8.3 million in the last 10 years?In this article we will talk about Mirai Asset Large/Mid Cap Stock Fundits portfolio, performance, comparison with benchmark returns, and our views on such funds.
Also read: 15 Most Recommended Mutual Funds to Invest in in 2024
How did we filter this large-cap and mid-cap fund?
- We have considered all large-cap and mid-cap mutual funds in India. This category is distinct from large-cap funds (invests only in large-cap stocks) and mid-cap funds (invests primarily in mid-cap stocks), which focus on specific market segments.
- We’ve filtered for the funds that have created the highest wealth over the past 10 years.
- We have managed to grab the top spot as Mirae Asset Large & Midcap Fund which has converted investments of Rs 100,000 to Rs 8.3 million in the last 10 years.
- Next in second place was Quant Large & Midcap Fund which went from Rs 100,000 crore to Rs 8.21 lakh crore.
Now, I would like to introduce the details of Mirae Asset Large-Cap and Mid-Cap Stock Fund.
About Mirai Asset Large- and Mid-Cap Stock Fund
The investment objective of the scheme is to generate income and capital appreciation from a portfolio invested primarily in Indian equities and equity-related securities of large and mid-cap stocks at the time of investment.
Simply put, this fund invests in large-cap and mid-cap companies.
But on the other hand, flexi-cap funds invest in small-cap stocks as well, beyond large-cap and mid-cap stocks.check here This Flexi Cap Mutual Fund has grown from $100,000 to $9.2 million in the past 10 years
Mirae Asset Large-Mid Cap Fund – Portfolio
The fund currently has 99.34% invested in equities and 0.66% in other categories of investments.
The company’s top 10 equity portfolio comprises HDFC Bank, SBI, ICICI Bank, Reliance Industries, L&T, Axis Bank, NTPC, Kotak Mahindra Bank, Lupine and Gujarat Petronet.
As part of its other investment categories, the company currently invests in Treasury Securities Repurchase Transactions (TREPS).
Mirae Asset Large-Mid Cap Fund – Performance Details
Here are performance details for the past 10 years: These are direct plans.
Absolute return of the fund
- 1 year return: 44%
- 2 year return: 40.9%
- 3 year return: 71.9%
- 5 year return: 155.8%
- 10 years return: 727% (1 lac becomes 8.3 lac)
Annualized return of the fund
- 1 year return: 44%
- 2-year annualized return: 18.6%
- 3-year annualized return: 19.7%
- 5-year annualized return: 20.6%
- 10-year annualized return: 23.5%
SIP fund returns
- 1 year: 36.2%
- 2 years: 26.8%
- 3 years: 20.4%
- 5 years: 23.1%
- 10 years: 20.3%
A lump sum investment of $100,000 is
- 1 year: 1.44 million rupees
- 2 years: 140,000 rupees
- 3 years: 1.71 million rupees
- 5 years: 2.55 million yen
- 10 years: 8.27 million yen
A SIP investment of 10,000 would look like this:
- 1 year: Invested $120,000, now worth $140,000
- 2 years: Invested $240,000, now worth $310,000
- 3 years: Invested $360,000, now worth $480,000
- 5 years: Invested 600,000, current value is 106,000
- 10 years: Invested 1.2 million, current value is 35.1 million
Rolling return perspective:
3 year rolling return:
- Return above 20% – 82.5% probability
- 15%-20% return – 17.5% chance
- 12% to 15% returns – 0 times
- 0% to 12% returns – 0 times
- Negative return – zero times
5 year rolling return:
- Return above 20% – probability is 35%
- 15%-20% return – 44% chance
- 12%-15% return – 16% chance
- 0% to 12% return – 5% chance
- Negative return – zero times
How does Mirae Asset Large-Mid Cap Fund perform compared to its benchmark?
One of the best ways to see how a fund is performing is to look at its benchmark. The benchmark is NIFTY Large Midcap 250 TRI.
Returns in the past year
- NIFTY Large Mid Cap 250 TRI – 46%
- Mirae Asset Large/Mid Cap Fund – 44%
5 year annual return
- NIFTY Large Midcap 250 TRI – 21.1%
- Mirai Asset Large/Mid Cap Fund – 20.6%
10 years annualized return
- NIFTY Large Mid Cap 250 TRI – 18.1%
- Mirai Asset Large/Mid Cap Fund – 23.5%
Conclusion and our thoughts:
- It is a large- and mid-cap fund that invests 99.3% in stocks and 0.7% in other instruments. The stock composition ratio is 44% large-cap stocks, 25.8% mid-cap stocks, 5.82% small-cap stocks, and the rest consists of other equity products.
- The fund’s beta value is 0.89. This is a measure of a fund’s sensitivity to market movements. A beta value of less than 1 indicates that the fund is less volatile relative to the top and bottom of the benchmark. A beta value greater than 1 indicates that the fund is more volatile compared to its benchmark.
- Alpha is 2.38. This is a measure of the additional return provided by the fund compared to the benchmark. Investors should prefer high alpha funds that can generate higher returns.
- In this fund, you can invest a minimum of Rs 5,000 in lump sum and Rs 500 in SIP for 6 months. This fund has no lock-in period, but has a 1% exit load if redeemed within 365 days of the investment date.
- The fund has consistently returned 22.9% annually since its inception. The fund has outperformed its benchmark Nifty Large Midcap 250 Index TRI for the past 10 years, but has failed to outperform the index in the last one year and the last five years.
- While the large-cap segment of the fund offers stable returns, the mid-cap segment is riskier and at the same time generates superior returns. High-risk investors who want to invest for more than five years can invest in such funds. Alternatively, investors can look for other large-cap and mid-cap mutual funds that have outperformed the index over the short to long term. As an example, the Invesco Large-Mid Cap Fund is 20 stock mutual funds with positive returns every year over the past 10 years. Low- or medium-risk investors should avoid such funds.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
