Large and midcap fund inflows nearly double to Rs 8,484 crore in October. Do these funds deserve a place in your portfolio?

Monthly inflows into large and midcap funds nearly doubled in October to Rs 8,484 crore, according to data released by the Association of Mutual Funds in India (AMFI). The inflows rose nearly 99% from Rs 4,271 crore in the previous month.

On a year-on-year basis, inflows increased 167% from Rs 3,177 crore in October 2025, the data further showed.

Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said this could reflect investors' growing preference for strategies that offer a balance between the relative stability of largecap stocks and the growth potential of midcap companies.


Also Read | Mutual fund SIP inflows decline marginally MoM to Rs 32,160 crore in October

With largecap funds also witnessing a 20% surge in monthly inflows, Srivastava said these trends suggest that investors may be increasingly looking to balance growth opportunities with portfolio stability rather than concentrating their investments in relatively riskier market segments.

In October, large- and midcap funds delivered an average negative return of around 0.94%. Of the 36 funds in the category, Samco Large & Mid Cap Fund gained the most, at around 3.14%. This was followed by Quant Large & Mid Cap Fund, which returned 0.76%.

Tata Large & Mid Cap Fund was the worst performer, declining around 3.70%, followed by Sundaram Large and Mid Cap Fund, which fell 3.47% over the same period.

Feroze Azeez, Joint CEO of Anand Rathi Wealth Limited, said investor preferences are also changing, with large- and midcap funds attracting 26% of active equity inflows in October, compared with 11% in September. This indicates a growing preference for balancing growth with stability.

“This is the highest inflow among all equity fund categories for the month, surpassing smallcap, midcap and flexicap funds, all of which have led in previous months. The sharp acceleration in this category merits careful interpretation,” said Nitin Agrawal, CEO, Mutual Funds, InCred Money.

Large- and midcap funds offer investors a structured blend of largecap stability and midcap growth potential within a single fund. Following September's market correction, which significantly impacted pure midcap portfolios, investors appear to be moderating risk at the margin by directing fresh inflows towards the more balanced large- and midcap category rather than pure midcap funds, Agrawal added.

Also Read | Equity MF inflows fall 14% MoM to Rs 32,993 crore in October; smallcap inflows slide 29%: AMFI

On a month-on-month basis, assets under management (AUM) rose marginally to Rs 3.55 lakh crore in October, compared with Rs 3.54 lakh crore in the previous month.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message ET Mutual Funds on Facebook or Twitter. We will get them answered by our panel of experts. You can also send your questions to ETMFqueries@timesinternet.in, along with your age, risk profile and Twitter handle.