3 Best Performing Large & Mid Cap Funds for SIP in 2026

In the last one year, benchmark indices have been consistently scaling new peaks, backed by steady corporate earnings, revival in private capex, and strong domestic investment flows.

SIP contributions into mutual funds have been setting new records every month, reflecting the fast-growing belief among Indian households in long-term equity investing.

Largecaps have remained quite resilient with substantial institutional support and earnings visibility, while mid and smallcaps have seen pockets of sharp rallies followed by equally sharp corrections.

Many investors have seen their portfolios swing widely during mid-cap drawdowns. This has created awareness that while growth opportunities abound, valuation discipline matters.

The question facing investors is how to invest wisely. This is where the Large & Mid Cap mutual fund category becomes relevant. The structure of these funds balance investments in India's growth story with a cushion against extreme volatility.

Following are 3 best large & mid cap funds based on their sustained historical performance, disciplined portfolio construction, and strong risk-adjusted returns across market cycles.

#1 Motilal Oswal Large & Midcap Fund

Motilal Oswal Large & Midcap Fund positions itself as a growth-focused scheme that seeks to capture the India opportunity through a buy-right, sit-tight investing philosophy.

The fund consistently focuses on high-quality companies that demonstrate competitive moats, healthy balance sheets, improving cash flows, and the ability to expand market share.

Its approach is predominantly bottom-up, driven by fundamental research, with an eye toward sectors and businesses that are expected to become dominant over the next market cycle.

The portfolio typically maintains a meaningful allocation to mid-caps for growth while retaining stability through large caps. This results in a portfolio that balances market leaders in large caps with emerging growth stories from the mid-cap universe.

The risk-adjusted performance profile of the fund has been supported by its selective stock-picking methodology and consistent focus on management quality, return on capital efficiency, and long-term growth visibility.

As of October 2025, the fund had 37 stocks, with an allocation of 37.59% to midcaps. The top holdings are Eternal (6.9%%), Bharat Electronics (4.1%), and CG Power & Industrial Solutions (3.9%).

Capital goods (34.4%), finance (17.6%), and retail (11.2%) are among the top 3 sectors of the fund, making up over 63.12% of its portfolio.

Motilal Oswal Large & Midcap Fund, in the last 5 years, has delivered an XIRR or SIP return of 26.33% compared to 18.17% by its benchmark, the Nifty LargeMidcap 250 - TRI.

A monthly SIP of Rs 10,000 in the fund over 5 years, i.e., a total investment of Rs 0.6 million (m), would now be valued at Rs 1.1 m.

Motilal Oswal Large & Midcap Fund - 10 Year SIP

Source: ACE MF

#2 Invesco India Large & Mid Cap Fund

Invesco India Large & Mid Cap Fund follows a growth-oriented investment approach that seeks to identify companies with sustainable competitive strengths and strong earnings visibility, while maintaining a balance between stability and growth opportunities.

The fund blends large-cap resilience with mid-cap agility, enabling it to benefit from structural trends across sectors while mitigating volatility through disciplined portfolio construction.

Its investment philosophy is based on bottom-up fundamental research, where the fund management focuses on business quality, sound corporate governance, stable cash flows, and scalability of operations.

The fund avoids short-term speculative themes and prefers companies that demonstrate a clear roadmap for shareholder value creation over many years. This approach allows the scheme to participate in market uptrends without significantly compromising on downside protection.

As of October 2025, the fund holds 45 stocks, with the allocation to mid-caps approximately 42.8%.

The top holdings include Max Healthcare Institute (5.4%), Eternal (5.3%), and Interglobe Aviation (5.1%). Sectors such as healthcare (19.6%), finance (16.9%), and retail (15.6%) are among the top 3 sectors of the fund, making up over 52.2% of its portfolio.

Historically, the scheme has delivered consistent rolling returns, supported by better-than-category risk-adjusted performance metrics, reflecting controlled volatility and efficient capital allocation.

Invesco India Large & Mid Cap Fund, in the last 5 years, has delivered an XIRR or SIP return of 23.67% compared to 18.17% by its benchmark, the Nifty LargeMidcap 250 - TRI.

A monthly SIP of Rs 10,000 in the fund over 5 years, i.e., a total investment of Rs 0.6 million (m), would now be valued at Rs 1 m.

Invesco India Large & Mid Cap Fund - 10 Year SIP

Source: ACE MF

#3 Bandhan Large & Mid Cap Fund

Bandhan Large & Mid Cap Fund follows a growth-with-quality investment philosophy that focuses on identifying businesses with robust fundamentals, strong return on capital profiles, and consistent earnings visibility.

The fund avoids momentum-led themes and instead places emphasis on companies that may compound value over longer cycles, making it suitable for long-term SIP investing.

The portfolio reflects a blend of dominant large-cap players that provide resilience during market volatility, alongside select mid-cap companies that offer scalability and higher earnings growth potential - making it suitable for SIP-driven wealth creation over a multi-year horizon.

As of October 2025, the scheme holds around 120 stocks, with the allocation to mid-caps for approximately 36.7% of the portfolio.

The top holdings include HDFC Bank (3.9%), SBI (3.2%), and HDFC AMC (2.9%), etc. Banks (16.7%), IT (9.3%), and finance (8.3%) are the top 3 sectors of the fund, making up 34.4% of its portfolio.

Bandhan Large & Mid Cap Fund, in the last 5 years, has delivered an XIRR or SIP return of 23.34% compared to 18.17% by its benchmark, the Nifty LargeMidcap 250 - TRI.

The fund has shown consistent rolling performance, supported by steady risk-adjusted return metrics, reflecting disciplined portfolio construction and active risk oversight.

A monthly SIP of Rs 10,000 in the fund over 5 years, i.e., a total investment of Rs 0.6 million (m), would now be valued at Rs 1 m.

Bandhan Large & Midcap Fund - 10 Year SIP

Source: ACE MF

Conclusion

Looking ahead to 2026, the investing challenges is to separate the signal of structural trends from the noise of the market cycles.

Large & Mid Cap Funds are best approached with this lens: It isn't a balance between stability and growth but rather participation in those sectors and businesses that are most likely to shape the market leadership over the next 3-5 years.

The merit of the category lies less in diversification alone but more in capturing early leadership transitions, especially in manufacturing, capital goods, financial services, and consumer platforms.

Investors may therefore consider rolling performance, earnings durability, and risk-adjusted return metrics rather than point-to-point returns or recent outperformance.

Also, the value for the SIP investor lies not in predicting the next market phase but in holding the portfolio through multiple phases - expansion, consolidation, and correction - while the underlying businesses continue to compound.

Consistency in SIPs ensures that capital gets deployed across market moods for better cost efficiency in the long run and increases the likelihood of continued wealth creation.

Invest wisely.

Happy investing.

Table Note: Data as of November 07, 2025
The securities quoted are for illustration only and are not recommendatory
Past performance is not an indicator for future returns.
Returns are on rolling CAGR basis and in %. Direct Plan-Growth option.
Those depicted over 1-Yr are compounded annualised.
Risk ratios are calculated over a 3-year period assuming a risk-free rate of 6% p.a.

Disclaimer: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as IA with Exchange and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.