Motilal Oswal Large & Midcap Fund has delivered a 23.9% CAGR over the last three years, topping its category peers. Invesco India Large & Mid Cap and Bandhan Large & Mid Cap followed with 23.6% and 21.0% returns. Rankings are based on funds with over ₹1,500 crore in assets, highlighting how performance leadership often shifts across different time horizons in the market.
What Happened
Motilal Oswal Large & Midcap Fund has emerged as the leading performer in the large-and-mid-cap mutual fund category over the past three years. According to performance data as of June 22, 2026, the fund delivered a compound annual growth rate (CAGR) of 23.9%. This ranking only includes funds with at least ₹1,500 crore in assets under management (AUM).
The list of top performers includes Invesco India Large & Mid Cap Fund, which returned 23.6% over the same three-year period, and Bandhan Large & Mid Cap Fund, which recorded a 21.0% return.
Fluctuating Performance Across Timeframes
While Motilal Oswal holds the top spot for the three-year window, market performance often varies significantly across shorter durations. Invesco India Large & Mid Cap Fund, for instance, leads the pack in the one-month and three-month performance windows, showing gains of 7.1% and 18.5% respectively. Meanwhile, HSBC Large & Mid Cap Fund topped the list for the one-year return period with a 12.9% CAGR.
These differences emphasize that a fund’s performance can change depending on the timeframe being measured. Investors frequently observe that the top-performing fund over a long period may not necessarily be the leader in shorter, more volatile market cycles.
The Size And Strategy Trade-Off
Bandhan Large & Mid Cap Fund holds the largest corpus among the top five funds in this category, managing assets worth ₹17,460.9 crore. For mutual funds, managing a larger asset base can be different from managing a smaller one. Larger funds often need to deploy capital into bigger, more liquid stocks to avoid moving the share price significantly, whereas smaller funds might have more flexibility to enter mid-sized positions.
How Investors May Read This
Mutual fund rankings can be helpful for initial research, but they only provide a snapshot of past performance. Because large-and-mid-cap funds invest in a blend of stable large companies and faster-growing mid-sized companies, they are subject to both large-cap stability and mid-cap volatility.
Investors often look at these performance tables to understand how different fund managers navigate market cycles. However, past returns do not guarantee future results. Factors such as the fund's expense ratio, portfolio overlap, and the manager's investment style remain critical for long-term investors.
What Investors Should Track
Instead of focusing solely on recent returns, investors may look at:
- Consistency: How a fund performs across various market ups and downs, rather than just one specific time window.
- Fund Strategy: Whether the fund manager prefers a concentrated portfolio or a diversified one, as this affects risk.
- Portfolio Overlap: Checking if the fund's holdings are too similar to a benchmark index or if the manager is taking active bets.
- Expense Ratio: The cost of running the fund, which directly impacts the net returns received by the investor.