Axis Mutual Fund's Large & Mid Cap Fund has delivered a 17.33% annual return since its inception in 2018. The fund maintains a strategy of balancing stable large-cap stocks with high-growth mid-cap companies. Investors can note that the fund recently reduced its number of holdings from 96 to 81 to concentrate on high-conviction investment ideas.
The Axis Large & Mid Cap Fund, managed by Axis Mutual Fund, has reported a compounded annual growth rate (CAGR) of 17.33% since it began operations in 2018. This performance metric highlights the fund's long-term strategy of blending established large-cap companies with faster-growing mid-cap firms to navigate market cycles.
Portfolio Strategy and Performance
As of June 30, 2026, the fund's Regular Plan-Growth option showed a three-year CAGR of 15.08% and a one-year return of 3.61%. Over the total period since launch, a hypothetical investment of ₹10,000 would have grown to approximately ₹33,800. The fund management team has recently refined its portfolio composition, reducing the total number of domestic equity holdings from 96 in December 2025 to 81 by June 2026. This shift reflects a move toward concentrating capital in high-conviction stocks rather than holding a broader range of companies.
Sector Focus and Economic Outlook
The fund’s current allocation emphasizes sectors aligned with India's manufacturing and industrial growth, specifically auto components, electrical equipment, and industrial products. Shreyash Devalkar, Head of Equity at Axis Mutual Fund, noted that the investment thesis relies on structural drivers such as increased formalization of the economy, rising private sector investments, and growing consumption patterns. Additionally, the fund has increased its exposure to global equities, including themes like artificial intelligence, to diversify beyond the domestic market.
Industry Context and Risks
The broader mutual fund industry in India has seen significant growth, with total assets under management reaching ₹81.58 lakh crore as of May 2026, according to AMFI data. Within this, the large and mid-cap category holds approximately ₹3.40 lakh crore. While the fund aims to balance risk through its dual-cap approach, investors should be aware that mid-cap stocks generally carry higher price volatility compared to large-cap stocks. Furthermore, the fund's performance is tied to the successful execution of companies in competitive sectors and the broader economic stability in both domestic and international markets. The shift toward a more concentrated portfolio means the fund's performance will be more sensitive to the outcomes of its top holdings. Future updates will likely focus on whether this concentrated approach continues to outperform market benchmarks and how the fund manages valuation risks in its selected sectors.