Video summary

Best Large & Midcap Funds 2026: Step-by-Step Selection Process

Main summary

Key takeaways

Finance

Finance-focused summary (Large & Midcap mutual fund selection framework)

Definition / category rules

  • Large-cap: Top 100 Indian companies by market capitalization.
  • Mid-cap: Next 150 companies.
  • Large & midcap funds must invest:
    • ≥ 35% in large-cap stocks
    • ≥ 35% in mid-cap stocks
  • Remaining 30% can be allocated flexibly (based on markets/fund manager skill).

Step-by-step selection process (as described)

Step 1: Universe setup (filter by AUM / age)

Exclude funds with:

  • AUM < ₹25,500 crore (as stated), or
  • less than 3 years since launch.

It also mentions excluding very small/young funds based on an AEM-related cutoff (wording is inconsistent in subtitles), with the intent to remove funds where AEM is “< ₹2,500 crore” or similarly very small.

Step 2: Benchmark outperformance screen

Compare the fund’s returns vs the benchmark returns across timeframes:

  • 1-year
  • 3-year
  • 5-year
  • 10-year

Then categorize:

  • Green: beats benchmark
  • Yellow: roughly equal
  • Red: underperforms

Exclusion rule: remove funds that do not beat the benchmark consistently.

Underperformers mentioned as examples of exclusions include:

  • Mirae Asset Large & Mid Cap (example: 1Y underperformance vs benchmark)
  • Franklin India Large & Mid Cap
  • CANDL(A)/C[an]dla Irbeco Large & Mid Cap
  • Tata Large & MidCap Fund
  • Aditya Birla Sun Life Large & Mid Fund
  • LIC and Mahindra Manulife L&MidC (mentioned as underperformers)

Step 3: Risk + quality metrics screen (for remaining funds)

Evaluate metrics such as:

  • Rolling returns (consistency)
  • Expense ratio (lower is better)
  • Standard deviation (higher = riskier)
  • Sharpe ratio (higher = better vs risk-free proxy like government securities)
  • Alpha (higher positive alpha = better relative to benchmark)
  • Up market capture ratio (higher = better)
  • Down market capture ratio (lower = better; implies less fall when market falls)

Step 4: Additional exclusions due to negative alpha

Exclude funds with negative alpha:

  • Mirae Asset Large & Mid Cap Fund (alpha described as negative, “underperforming consistently”)
  • Sundaram Large & Mid Cap Fund (alpha described as negative 0.94)

Step 5: Points-based ranking (top 5)

For each metric rank (rolling returns, expense ratio, standard deviation, Sharpe ratio, alpha, up/down capture), assign points:

  • #1 = 5 points
  • #2 = 4 points
  • #3 = 3 points
  • #4 = 2 points
  • #5 = 1 point

Sum points across metrics to determine the best fund(s).

Key numeric results & outcomes (Top funds by total points)

Rolling returns ranking (3-year average rolling returns)

  1. Motilal Oswal Large & Mid Cap: 29.82%
  2. Invesco India Large & Mid Cap: 27.48%
  3. Bandhan Large & Mid Cap: 27.43%
  4. UTI Large & Mid Cap: 24.12%
  5. ICICI Prudential (PDL) Large & Mid Cap: 23.41%

Expense ratio (lower is better)

  1. Bandhan
  2. Edelweiss
  3. DSP
  4. Invesco
  5. Kotak
  • A specific expense ratio value is mentioned for Kotak: “57” (likely 0.57%, but unit is unclear in subtitles).

Standard deviation (lower = better / less risk)

  1. SBI Large & Mid Cap: 13.57
  2. Axis Large & Mid Cap: 14.24
  3. ICICI Prudential Potential Larg[e] & Mid Cap (name garbled in subtitles; likely “Prudential”)
  4. Kotak
  5. UTI

Sharpe ratio (higher = better)

  1. “Bond” fund name appears garbled: 1.00
  2. Invesco India Large & Mid Cap: 0.92
  3. Motilal Oswal
  4. ICICI
  5. HSBC

Alpha (higher = better)

  1. Motilal Oswal: 6.45
  2. “Bond”: 5.64
  3. Invesco India: 5.44
  4. HSBC
  5. ICICI

Market capture ratios (up capture higher; down capture lower)

Up market capture ratio

  • Motilal Oswal: 132 (described as 32% more than index; index up 100 points, fund up 132 points)

  • Invesco India: (value not clearly shown)

  • Quant Large & Mid Cap Fund: (subtitle garbling; “market capture ratio of 12” appears)
  • Tie: HSBC and Bandhan at 113
  • Tie: UTI, Nippon, and HSBC also mentions 113 (subtitle inconsistencies)

Down market capture ratio (lower = better)

  • ICICI mentioned as lowest: 77
  • SBI second: 78
  • Axis fourth
  • UTI fifth (other values not consistently clear due to subtitles)

Final point totals (declared “best fund” outcome)

  1. Bandhan Large & Mid Cap Fund — 20 points (rank #1)
  2. Motilal Oswal Large & Mid Cap Fund — 18 points (rank #2)
  3. Invesco India Large & Mid Cap Fund — 16 points (rank #3)
  4. ICICI Prudential Large & Mid Cap Fund — 12 points (rank #4)
  5. SBI Large & Mid Cap Fund — 9 points (rank #5)

Risk-based guidance given (conditional)

  • Bandhan: positioned as lower-risk with “good returns” (based on described lower standard deviation + overall scoring).
  • SBI / ICICI (ICICI Pru): suggested for low-risk investors seeking lower risk.
  • Bandhan / Invesco: for moderate risk investors.
  • Motilal Oswal: for high-risk / aggressive investors only, with explicit caution:
    • Very high standard deviation (21.37; described as highest)
    • Down market capture described as very high (example: index falls 100 → fund falls 116), implying worse downside behavior than the index.

Disclosures / cautions

The presenter states: no direct recommendation.

  • Video is for educational purposes only.
  • Viewers should do their own research before investing.

Instruments / tickers / entities mentioned

Mutual fund schemes (tickers not provided)

  • Bajaj Finserv Large & Midcap Fund
  • Vito Capital (name garbled) Large & Midcap Fund
  • BNP Paribas Union (name garbled) Large & Midcap Fund
  • Mirae Asset Large & Mid Cap Fund (name partially garbled)
  • Franklin India Large & Mid Cap Fund
  • C[an]dla Irbeco Large & Mid Cap Fund (name garbled)
  • Tata Large & Mid Cap Fund
  • Aditya Birla Sun Life Large & Mid Fund
  • LIC Large & Midcap (scheme name garbled)
  • Mahindra Manulife L&MidC Fund
  • Sundaram Large & Mid Cap Fund
  • SBI Large & Mid Cap Fund
  • Kotak Large & Mid Cap Fund
  • ICICI Prudential Large & Mid Cap Fund
  • DSP Large & Mid Cap Fund
  • Motilal Oswal Large & Mid Cap Fund
  • Axis Large & Mid Cap Fund
  • Invesco India Large & Mid Cap Fund
  • Nippon India Large & Mid Cap Fund
  • UTI Large & Mid Cap Fund
  • HSBC Large & Mid Cap Fund (name as given)
  • Edelweiss Large & Mid Cap Fund
  • Quant Large & Mid Cap Fund
  • Bandhan Large & Mid Cap Fund

Benchmark / market index reference

  • Referred to as “benchmark index” (not named).

Presenters / sources

  • Puneet Nagpal, introduced as a Certified Financial Planner.

Original video