Sundaram Large and Mid Cap Fund has emerged as the top performer in its category with a 13.7% one-year return as of mid-August 2026. While short-term gains are strong, investors should look at long-term consistency and the fund's high-risk profile. The fund manages over Rs 7,200 crore and carries a 'Very High' risk rating typical of equity-heavy portfolios.
The Sundaram Large and Mid Cap Fund has topped the charts in the large and mid-cap mutual fund category, recording a one-year CAGR return of 13.7% as of August 17, 2026. This performance places it slightly ahead of competitors such as the HSBC Large & Mid Cap Fund and the Quant Large & Mid Cap Fund, both of which have also posted significant gains over the same one-year timeframe.
It is important for investors to recognize that performance rankings can vary based on the time horizon selected. While the Sundaram fund has shown strong outperformance against its benchmark—the NIFTY Large Midcap 250 Total Return Index—by 14 percentage points over the past year, mutual fund investments are best evaluated over longer periods. For instance, while Sundaram holds the lead in shorter windows like one month and one year, other funds, such as the Motilal Oswal Large & Midcap Fund, have reported higher returns of 22.9% over a three-year period. The Motilal Oswal fund also manages a larger corpus, with assets under management (AUM) exceeding Rs 18,400 crore.
As of July 31, 2026, the Sundaram Large and Mid Cap Fund manages an AUM of approximately Rs 7,221 crore. Since its launch in 2007, the fund has employed an equity-heavy strategy, which carries a 'Very High' risk profile according to SEBI's standard risk measurement tools. This high-risk rating is typical for funds that invest primarily in a mix of large-cap and mid-cap equities, as these segments can experience significant volatility compared to safer debt instruments.
Investors considering this category should be mindful of specific structural risks. The fund maintains a concentrated portfolio of roughly 65 to 70 stocks. While this allows for potential growth, it also means the fund's performance is more sensitive to the outcomes of specific sectors or individual companies. Additionally, the fund imposes a 1% exit load on redemptions if an investor sells more than 25% of their investment within 365 days of purchase.
The final benefit of any mutual fund investment depends on the investor's individual financial goals and their ability to tolerate market fluctuations. When reviewing these returns, investors may focus on the fund's consistency across different market cycles, the quality of its stock selection strategy, and whether its high-risk profile aligns with their personal investment timeline rather than relying solely on recent short-term performance figures.