Six large & mid cap schemes fail to beat benchmark in three consecutive years

Six large & mid cap schemes have continuously underperformed their respective benchmark in the three consecutive years (2020, 2021, and 2022), an analysis of yearly returns of the category by ETMutualFunds showed.

Around 26 large & mid cap schemes have completed three years of existence in the market. Out of these 26 large & mid cap schemes, six schemes – DSP Equity Opportunities Fund, Edelweiss Large & Mid Cap Fund, HSBC Large & Mid Cap Fund, Invesco India Growth Opp Fund, LIC MF Large & Midcap Fund, and Nippon India Vision Fund – have underperformed their benchmarks in three consecutive years from 2020 to 2022. (See table for details) We considered regular and growth options for the analysis.

Four schemes from the list - DSP Equity Opportunities Fund, Edelweiss Large & Mid Cap Fund, LIC MF Large & Midcap Fund, and Nippon India Vision Fund – have underperformed their benchmarks in 2023 so far. HSBC Large & Mid Cap Fund and Invesco India Growth Opp Fund have outperformed their benchmarks in 2023 so far.


These schemes are benchmarked against NIFTY LargeMidcap 250 - TRI.

Sebi introduced this category during the recategorisation of mutual funds in 2018.


HSBC Large & Mid Cap Fund was launched in 2019. Since 2019, based on yearly returns, the scheme has failed to beat its benchmark. Nippon India Vision Fund has underperformed its benchmark since 2018.

Note, this is not a recommendation. The exercise was done to find out which large & mid cap schemes have continuously underperformed against their respective benchmarks in the last three years.

One should not make investment or redemption decisions based on the above exercise. One should always consider investment horizon, risk appetite, and goals before making any investment decision.

If you are looking for recommendations, see:
Best large & mid cap schemes to invest in 2023

Large & mid cap schemes are suitable for aggressive investors who are willing to invest in mid cap stocks. These schemes may have more exposure to large cap or mid cap stocks, based on the market conditions and the outlook of the fund manager. Large & mid cap schemes invest a minimum of 35% of total assets in large cap companies, and a minimum of 35% of total assets in mid cap stocks.