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What are Large & Mid Cap Mutual Funds?

Large and Mid Cap Mutual Funds are equity mutual funds and invest primarily in a mix of large and mid-sized companies. As opposed to a large cap fund or mid cap fund, these funds have the leeway to diversify their investments across a single fund.

1. Things to Consider Before Investing in Mid Cap Funds

  • Investment Goal:

    As this is an equity mutual fund, it generally has a long-term investment horizon. It helps in fulfilling long term financial goals. So this fund is best suited for investors who are ready to invest for at least 5 years.

  • Risk:

    As we said, these are equity mutual funds. They invest in stock markets. And stock markets can be volatile in the short term. Although these funds are diversified and invest in India’s top 250 companies, they are not immune to stock market fluctuations.

  • Expense Ratio:

    While managing a large & mid cap mutual fund, the asset management company incur some operating and administrative costs. The fund manager’s salary is one of them. These costs are passed on to the investor in the form of an annual fee known as the expense ratio. So look at the expense ratio of the fund while picking a fund.

2. Top 5 Performing Large & Mid Cap Mutual Funds

Let’s look at some of the top-performing mutual funds helming the multi cap category. The performance is based on the basis of returns provided by the fund in the last 3 and 5 years.

*It must be noted that these are not fund recommendations. Besides, they are also not the only way through which you can rank funds.

3. How can you Invest in Large & Mid Cap Funds through ET Money?

It is quite easy to invest in Large & Mid Cap Funds on ET Money. All you need to do is just follow these below-mentioned steps:

Sridhar Kumar Sahu is a Content Writer for ET Money. He has over six years of experience in covering personal finance topics and markets. He holds a Master’s degree in English Journalism from IIMC, New Delhi and B.Tech in Mechanical Engineering from BPUT, Odisha.
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