Large and Mid-Cap Fund SIP investment rationale
A Large and Mid Cap mutual fund will invest among the top 250 companies, depending on the market capitalization of the companies. As the name suggests, this mutual fund SIP will invert both large-cap and mid-cap funds. The investment fund house will analyse the stocks depending on their previous years’ returns and other performances. By investing in large and mid-cap funds, you can diversify your portfolio. The large company stocks are better-secured, while the mid-cap companies can provide you better returns in the same period. Only a minimum investment can be allocated in the small-cap funds. The Large and Mid Cap mutual funds usually target giving your securities with good returns, unlike the small-cap funds.
Quant Large and Mid Cap Fund – Direct Plan – Growth
Quant Large and Mid Cap Fund – Direct Plan is a mutual fund SIP investment that has a NAV of Rs. 71.70, and the size (AUM) of this fund is Rs. 56.54 crore, which is not ample. But, the Expense Ratio (ER) of this fund is 0.50%, while the category average is 1.09%. the ER is much lower compared to the category average, which is profitable for investors. The Expense Ratio is the percentage, which the fund house will use from the retail investors’ investments, for fund management purposes.
This mutual fund SIP has been best rated with 5 Star by reputed rating agency Crisil.
Absolute and annualized returns
As it is a Large and Mid-Cap Fund, its absolute returns from SIPs have been reported higher in the long term. In the last 1-year SIP return stood at 14.63%, in the last 2 years it has fetched 45.63% returns, in the last 3 years it has given 60.8% returns, in the last 5 years, it has fetched 73.7% returns. Annualized returns from Quant Large and Mid Cap Fund – Direct Plan’s SIP were 40.95% in the past 2 years, and 33.45% in the past 3 years.
Quant Large and Mid Cap Fund – Direct Plan’s absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 38.22%, in the last 2 years it has fetched 140.41% returns, in the last 3 years it has given 90.19% returns, in the last 5 years it has given 107.01% returns. In the past 2 years, the Quant Large and Mid Cap Fund – Direct Plan’s annualized returns stood at 54.87%, outperforming the category average of 46.60%.
(Data till March 29, 2022)
Quant Large and Mid Cap Fund – Direct Plan’s total equity holding is 99.06%, and the rest of the 0.94% is invested in other sectors. Among total of 34 stocks, the Fund’s Large Cap Investments are 46.55%, Mid Cap Investments are 25.05%, Small Cap Investments are 22.93%; and 4.53% investments are allocated to other funds.
The top 10 equity holdings of the fund are Adani Enterprises Ltd., Vedanta Ltd. – Copper & copper products, IRB Infrastructure Developers Ltd., GMR Infrastructure Ltd., Adani Ports And Special Economic Zone Ltd., National Aluminium Co. Ltd., Indian Hotels Company Limited, Piramal Enterprises Ltd. – Pharmaceuticals, ITC Limited, and State Bank Of India.
Other funds under this category are, ICICI Prudential Large & Mid Cap Fund- Direct Plan-Growth, Navi Large & Midcap Fund – Direct Plan-Growth, Sundaram Large and Mid Cap Fund – Direct Plan-Growth, HDFC Large and Mid Cap Fund – Direct Plan-Growth, etc.
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