Large and Mid Cap Fund: Your Key to Balanced Growth

Introduction

Do you want to grow your investment but cannot take the higher risk? Do not worry; you have a solution with Large and Mid Cap Fund. Yes, this category gives you dual benefits of large and mid cap stocks.

It is a dual-cap investment plan that helps investors generate wealth with stability. It focuses on investing in a mix of large and mid-cap companies that provide growth. This approach to investment makes it easier for investors who want to invest mid-cap funds but cannot take higher risks. These funds focus on providing stability and diversification to generate long-term capital appreciation.

In this article, you will discover everything about this dual cap fund. What is the smart strategy of allocating funds and top large and midcap fund that you can choose to invest? So keep reading on to find your answers.

What are Large and Midcap Funds?

The large and mid cap fund is a mutual fund that primarily invests in large and mid-sized companies. These companies have a strong market presence and growth capabilities. By investing in both types of companies, the fund aims to provide stability and growth in a single investment.

The fund also uses diversification to spread the investment in different sectors. It helps to reduce the risk and dependency on one sector. This approach of investment helped the fund to provide an 11.83% return annually in the past 3 years.

If you are looking for an investment plan that offers stability and growth in a single investment, then investing in this mutual fund is a great choice. 

What is the Investment Strategy of Large and mid cap Funds?

These large and mid cap fund follow a simple investment strategy to generate long-term capital appreciation. Instead of investing in a single fund, it invests in a blend of large and mid-cap funds.

The firm do this to leverage both company's benefits. In simple terms, large-cap companies are known for investing in well-established companies with low risk. But at the same time mid-cap companies are known for it's high growth potential with medium risk. The fund allocates 35% of the portfolio to each fund. It helps to generate equal returns from both funds.

To make the portfolio management stress-free, the fund has experienced fund manager. They use deep research and proven strategies to manage the portfolio. Not only fund management, they also adjust the portfolio according to market conditions.

In short, the fund uses well-researched and proven strategies to invest in growth potential stocks help to generate long-term results.

Benefits of Investing in Large and Midcap Funds

The large & mid cap fund offered a balanced choice to investors who are looking for long term results. Here are several benefits it provides if you invest in this dual cap fund:

Dual Benefits in Single Investment

The fund focuses on investing in a mix of large and mid-sized companies. It helps you to leverage large and mid-cap benefits in a single investment.

Diversified Portfolio

These dual-cap funds use diversification, which means it spreads the investment in several sectors. It helps to reduce the risk and dependency on a single sector.

Professional Fund Management

Experienced fund managers manage the portfolio and select profitable stocks using deep research. They also adjust the portfolio when needed to reduce the risk and improve performance. 

Long-Term Wealth Creation

The fund invests in mid and large companies that have long-term growth potential. If you are planning to grow your investment for the future, then it will help you to do it.

Transparency

The fund provides clear data and analytics to its investors. It helps to understand how your mutual fund portfolio is performing and make changes before the time when needed.

Disciplined Investment

The fund helps investors to invest through a SIP (Systematic Investment Plan). It helps those individuals who want to invest at regular intervals.

5 Best Large and Midcap Fund to Invest via SIP

If you do not have the idea about best large and midcap fund for your investment, then here are the top large and midcap fund you can consider:

1. Motilal Oswal Large & Mid Cap Fund

2. Bandhan Core Equity Fund 

3. Quant Large and Mid Cap Fund

4. ICICI Prudential Large and Mid Cap Fund

5. UTI Large and Mid Cap Fund

These funds provided significant growth in the last few years and are considered the most favourable choice by investors.

Who Should Invest in a Large and Mid-Cap Funds 

When it comes to investing, one question comes to mind- Is large and mid cap fund is the right choice for us? So don't worry, here are some types of investors who should consider these funds:

Moderate to High-Risk Takers

The large and mid-sized company's stocks can be affected by volatility and market changes. So the fund is a good choice for investors who want to grow their investment but also have medium to high risk tolerance.

Long Term Investors

If you are planning to invest for at least 5-7 years, then these fund's investment strategies help you to make better returns. Not only you can grow your investment, but also manage short-term losses.

Diversification Seekers

If you want your portfolio to get diversified, then investing in these funds can be a great choice. It spreads the investment to different sectors to reduce the risk and generate better performance.

New Investors

These funds allow investors to invest through a SIP where they can invest a fixed amount at regular intervals. You can invest in these funds if your financial situation does not allow to invest a large amount.

Future Planners

These funds focus on long-term growth, so if you are planning to invest to give shape to your future or achieve a financial goal then you can choose to invest in these mutual funds.

To know whether the funds is right choice for you can be tricky but by understanding your financial goals and time horizon, you can make the better decision.

Final Thoughts

End of this article, you understood how large and midcap fund can be a smart choice for investors. It not only provides growth but allows you to benefit two funds in a single investment. If things like market changes and the economy disturb you every night, then these dual cap funds gives you the best large and midcap fund for less risky investment and make your life easy.

You can also start your SIP journey where you can invest a fixed amount at regular intervals and grow your investment annually. If you are looking to start with a low but systematic investment approach, then this might be your next step.