Performance check of Large Cap Mutual Funds vs. Mid Cap Mutual Funds from 1st January 2023 till 31st May 2023
Performance snapshot of Indian Equity Market - Nifty & Sensex :
As of 31st May 2023, the Nifty closed at 18,534.40, while the Sensex closed at 62,622.64. Both indices experienced a monthly gain of 2.13% and 2.03%, respectively. However, when we look at the Year-to-Date (YTD) returns from 1st January 2023 to 31st May 2023, we find that both the Nifty and Sensex have delivered approximately 2% returns. This suggests that despite the ups and downs, the market has essentially remained stagnant since the beginning of the year.
Actively Managed Large Cap Mutual Funds Outperformed the Sensex and Nifty :
Despite the overall market performance, actively managed large cap mutual funds have proven to be successful in generating better returns than the large cap index. This reiterates the popular slogan - "Mutual Fund Sah Hai!!" Let's take a look at some of the top-performing large cap mutual funds :
Table #1 : Top Performing Large Cap Mutual Funds
Mid Cap Mutual Funds Delivered Higher Returns than Large Cap Funds :
Mid cap based mutual funds have exhibited even better returns during the same period. Although mid cap funds come with higher risks, they have also provided higher returns. Here are some of the actively managed top-performing mid cap mutual funds:
Table # 2 : Top Performing Mid Cap Mutual Funds
The Optimal Investment Option : A Blend of Large & Mid Cap Funds, known as Large & Midcap Funds
While large cap funds are known for their stability, they tend to offer relatively lower returns. On the contrary, mid cap funds can be more volatile but offer higher potential returns. Therefore, a balanced approach that combines both large and mid cap funds can provide the best investment option. Here is a list of the top 10 large and mid cap funds that can help you achieve a balanced portfolio:
Table # 3 : Top 10 Large & Mid Cap Funds
Conclusion :
In the dynamic world of the Indian stock market, where market indices may showcase minimal growth over certain periods, actively managed mutual funds have proven their ability to outperform the market. By diversifying your portfolio with a mix of large and mid cap funds, you can strike a balance between stability and potential growth. Remember to read the fund details properly and consult with a financial product distributor to determine the best investment strategy based on your risk tolerance and financial goals.
Happy investing !
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Disclaimer :
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.