2 Best Large & Mid Cap Funds Rated 1 By CRISIL With 1 Year Returns Over 70%

The prognosis for mid and large-cap equities is upbeat, however, turbulence is the key factor to consider as the markets are in a bull run, there is potential for more volatility, therefore it is better to begin investing in a fund that is diversified over multiple market capitalizations. To reach your long-term financial objective, investing in large-cap and mid-cap funds with a 50:50 allocation now for more than 5 years where the market is at an all-time high, can be a good bet as these equity funds invest in India's top 200 companies i.e. at least 35% in large-cap stocks and at least another 35% in mid-cap stocks which can give you a blend of stability and higher risk-adjusted returns resulting to less risk exposure to pure mid-cap or large-cap stocks.

As a result, it is preferable to diversify your portfolio among large and mid-cap funds, which usually generate stable returns even in volatile markets, resulting in higher long-term capital growth. Based on the "No.1" ranking of CRISIL, and 1-year stellar performance of over 70%, here we have picked up 2 large and mid-cap funds to invest in 2021 for investors who want to achieve significantly better risk-adjusted performance while pursuing growth and stability with a blended portfolio.

UTI Core Equity Fund Regular Plan-Growth

This Large & MidCap mutual fund was launched in 2005 and thus has been in existence for the last 16 years. According to Value Research, UTI Core Equity Fund Regular Plan-Growth returns for the past year have been 71.52 percent, with an average annual return of 13.40 percent since its commencement. The expense ratio of this medium-sized fund in its category is 2.53%, which is much higher than the expense ratio of most other Large and MidCap funds. The financial, technology, construction, energy, and healthcare sectors are all heavily represented in the fund's equity allocation.

ICICI Bank Ltd., HDFC Bank Ltd., Housing Development Finance Corporation Ltd., Infosys Ltd., and State Bank of India are among the fund's top five holdings. CRISIL has given the UTI Core Equity Fund Regular Plan-Growth fund a 1-star rating, Value Research has given it a 3-star rating, and Morningstar has given it a 2-star rating, indicating how the fund has managed with risk and price tweaks compared with other funds under the Large & Mid Cap fund category. If assigned units are redeemed within one year of the investment date, the fund imposes a 1% exit load. The fund has a Net Asset Value (NAV) of Rs 99.03 crore and an Asset Under Management (AUM) of Rs 1,157.73 crore as of October 1, 2021.

Mirae Asset Emerging Bluechip Fund Direct-Growth

This Large & MidCap mutual fund is a medium-sized fund of its category and has been in existence for the last 8 years. According to Value Research, Mirae Asset Emerging Bluechip Fund Direct-Growth returns over the last year have been 68.04 percent, with an average annual return of 25.87 percent since its debut. The fund has a major equity allocation across the Financial, Healthcare, Technology, Automobile, Energy sectors. The fund has an equity holding of 98.7% and a cash allocation of 1.3%. The fund's best-performing holdings are ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., Infosys Ltd., State Bank of India.

The fund's expense ratio is 0.69 percent, which is lower than the expense ratio of most other funds in the same category. The fund charges an exit load of 1% if purchased units are redeemed within 1 year of the investment date. Mirae Asset Emerging Bluechip Fund Direct-Growth fund has been ranked 1 by CRISIL, 5 star by Value Research and again 5 star Gold by Morningstar which is only the indicator of the fund's past performance and which not only should be your only criteria while investing. As of 1st October 2021, the fund has a Net Asset Value (NAV) of Rs 105.63 Cr and Asset Under Management (AUM) of Rs 20,615.27 Cr. With a minimum amount of Rs 1000, SIP can be started in this fund.

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Based on CRISIL's "No.1" ranking and past performance of over 70% returns, here are the two best performing large and mid-cap funds that you can consider to initiate SIP in 2021.

Funds	1 mth returns	6 mth returns	1 Yr returns	3 Yr returns	5 Yr returns
UTI Core Equity Fund Regular Plan-Growth	2.55%	23.91%	71.52%	18.09%	13.58%
Mirae Asset Emerging Bluechip Fund Direct-Growth	1.88%	23.35%	68.04%	27.90%	22.03%
Source: Groww

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