Large and mid-cap funds are registering a steady inflows mainly by investors who are bullish on both large and mid-cap funds due to beaten down valuations after the recent market meltdown on the back of lingering West Asia war.
The large and mid-cap category has received an inflow of ₹3,278 crore last month higher than ₹1,593 crore of large-caps. However, mid-cap received investment of ₹4,385 crore in May.
Similarly, in April large and mid-cap funds attracted an investment of ₹4,490 crore while standalone large and mid-cap funds received inflow of ₹2,525 crore and ₹6,551 crore.
The present lows in the large and mid-cap was largely due to conflict and global uncertainty. The fall is not due to the fundamentals of the companies.
Buying strategy
Pankaj Mathpal, Founder, Optima Money, said buying at these levels is an opportunity and investing in mutual funds with a portfolio in large and mid-cap companies is a good strategy.
This perhaps is the perfect time to enter the market, especially for mutual fund investors, who missed the bus earlier, before the bulls took over, he said.
The recent decline in equities has narrowed India’s valuation premium, removed the excessive hike in equity prices and have positioned large and mid-cap companies at more comfortable levels.
Large and mid-cap mutual funds have been performing well over the last few years. Nippon India Vision Large and Midcap Fund, which is one of the oldest funds in the category has delivered three-year annualised return of 18 per cent. ICICI gave a return of 16 per cent, while large and multi-cap funds from Bandhan MF and Invesco MF have clocked in returns of 15 per cent and 15 per cent in the last three years.
Mutual fund advisors bet big on large and mid-cap mutual funds since large caps provide strength and mid-caps have a huge growth potential. Investing in current uncertain times can give alpha returns, provided investors do not panic in case of a further fall in the markets and stay invested.
Published on June 11, 2026
