Best Large & Mid Cap Mutual Funds Based On 5 Year Sip Return October 2024

_{Published on: 04 Nov, 2024 03:48}

• Motilal Oswal Large and Midcap Fund: Highest 5-year XIRR at 33.72%, strong Sharpe Ratio of 1.39, moderate volatility.

• Quant Large & Mid Cap Fund: 5-year XIRR of 30.52%, higher risk with a standard deviation of 15.32%, suitable for aggressive investors.

• Bandhan Core Equity Fund: 5-year XIRR of 30.35%, excellent Sharpe Ratio of 1.40, balanced risk profile.

• UTI Large & Mid Cap Fund: 5-year XIRR of 29.41%, moderate risk with standard deviation of 13.01%, resilient in downturns.

• ICICI Prudential Large & Mid Cap Fund: 5-year XIRR of 29.28%, low volatility (standard deviation of 11.78%), and low max drawdown of -7.36%, ideal for conservative investors.

 

 

 

Large & Mid Cap funds invest in a mix of large, stable companies and mid-sized, high-growth potential companies, providing a balance of stability and growth. In this analysis, we examine the top-performing Large & Mid Cap funds based on their 5-year XIRR, focusing on funds that combine strong returns with prudent risk management. This category suits investors who want exposure to both large-cap stability and mid-cap growth.

The 5-year XIRR (Extended Internal Rate of Return) serves as a reliable metric for assessing a fund’s performance over an extended period, capturing returns across various market cycles. For Large & Mid Cap funds, a strong 5-year XIRR indicates that the fund has effectively balanced the growth potential of mid-cap stocks with the stability of large-cap holdings. Let’s explore the top funds based on this metric.

• 5-Year XIRR: 33.72%
• Sharpe Ratio: 1.39
• Standard Deviation: 13.69%
• Max Drawdown: -17.05%

Motilal Oswal Large and Midcap Fund leads with a 5-year XIRR of 33.72%, the highest in this category. With a Sharpe Ratio of 1.39, it demonstrates efficient risk-adjusted returns. The standard deviation of 13.69% indicates moderate volatility, while the max drawdown of -17.05% points to resilience during downturns. This fund is suitable for aggressive investors seeking high growth with moderate risk tolerance.

• 5-Year XIRR: 30.52%
• Sharpe Ratio: 1.23
• Standard Deviation: 15.32%
• Max Drawdown: -10.93%

Quant Large & Mid Cap Fund delivers a strong 5-year XIRR of 30.52%, backed by a Sharpe Ratio of 1.23. Although its standard deviation of 15.32% reflects higher volatility, the fund’s max drawdown of -10.93% suggests it has managed to contain losses effectively. This fund is ideal for investors comfortable with higher risk in exchange for potentially higher returns.

• 5-Year XIRR: 30.35%
• Sharpe Ratio: 1.40
• Standard Deviation: 13.31%
• Max Drawdown: -11.13%

Bandhan Core Equity Fund boasts a solid 5-year XIRR of 30.35%, with a Sharpe Ratio of 1.40, indicating excellent risk-adjusted returns. The standard deviation of 13.31% points to moderate volatility, while a max drawdown of -11.13% showcases its stability during market corrections. This fund suits conservative investors seeking a blend of stability and growth.

• 5-Year XIRR: 29.41%
• Sharpe Ratio: 1.20
• Standard Deviation: 13.01%
• Max Drawdown: -11.51%

With a 5-year XIRR of 29.41%, UTI Large & Mid Cap Fund is another top performer. Its Sharpe Ratio of 1.20 and standard deviation of 13.01% suggest a well-balanced approach to risk and return. A max drawdown of -11.51% makes it a resilient choice for moderate-risk investors seeking long-term growth.

• 5-Year XIRR: 29.28%
• Sharpe Ratio: 1.38
• Standard Deviation: 11.78%
• Max Drawdown: -7.36%

ICICI Prudential Large & Mid Cap Fund has delivered a 5-year XIRR of 29.28%, paired with a high Sharpe Ratio of 1.38, which indicates effective risk management. Its standard deviation of 11.78% is among the lowest in this category, and a max drawdown of -7.36% underscores its stability. This fund is suitable for conservative investors prioritizing low volatility with steady returns.

Understanding the risk profile of each fund is essential for making informed investment decisions. Here’s an overview of key risk metrics:

1. Sharpe Ratio: This ratio measures risk-adjusted returns, highlighting how well a fund compensates for risk. Funds like Bandhan Core Equity (1.40) and ICICI Prudential Large & Mid Cap (1.38) have high Sharpe Ratios, indicating efficient risk management.

2. Standard Deviation: Indicates the volatility of returns. Lower standard deviations, as seen in ICICI Prudential Large & Mid Cap Fund (11.78%), reflect more stable performance, which is appealing to conservative investors.

3. Max Drawdown: Measures the maximum observed loss from a peak to a trough. Funds with lower max drawdowns, such as ICICI Prudential Large & Mid Cap (-7.36%) and Quant Large & Mid Cap (-10.93%), are generally more resilient during downturns.

4. Value at Risk (VaR): Estimates potential loss in worst-case scenarios. Quant Large & Mid Cap has a higher VaR (-18.62%), implying larger potential losses, while UTI Large & Mid Cap Fund’s VaR (-12.34%) suggests a more conservative profile.

Funds like Motilal Oswal Large and Midcap and Quant Large & Mid Cap excel in risk-adjusted returns, making them suitable for aggressive investors who prioritize growth. Meanwhile, Bandhan Core Equity and UTI Large & Mid Cap funds offer a more balanced approach, appealing to moderately conservative investors.

For investors focused on minimizing volatility, ICICI Prudential Large & Mid Cap Fund, with a standard deviation of 11.78%, stands out. This fund combines stability with strong returns, ideal for conservative investors who prefer consistency.

The 5-year XIRR metric underscores each fund's long-term growth potential. Motilal Oswal Large and Midcap Fund, with the highest 5-year XIRR of 33.72%, is a top choice for those seeking aggressive growth in this category.

Investors should balance growth potential with risk tolerance when selecting a Large & Mid Cap fund. Motilal Oswal Large and Midcap Fund offer high returns for aggressive growth seekers, while conservative investors may prefer ICICI Prudential Large & Mid Cap for its stability and low volatility.

Each of these top-performing Large & Mid Cap funds has been evaluated based on both returns and risk metrics, offering a diverse selection to suit various investment strategies. By examining 5-year XIRR alongside key risk metrics, investors can make informed choices aligned with their financial goals.