Axis Large & Mid Cap Fund delivers 17% CAGR; Rs 10,000 grows to Rs 33,800

A one-time investment of ₹10,000 made at the fund's launch in 2018 would have grown to ₹33,800 over the same period.

Investors looking to balance growth with relatively lower volatility may want to consider large & mid-cap mutual funds, a category that combines the stability of blue-chip companies with the higher growth potential of mid-sized firms.

 

The category has been attracting steady investor interest, with assets under management (AUM) reaching around Rs 3.4 lakh crore as of May 2026, according to data from the Association of Mutual Funds in India (AMFI).

 

One fund that has benefited from this trend is Axis Large & Mid Cap Fund, which has delivered a 17.07 per cent compound annual growth rate (CAGR) since its launch in 2018 under the Regular Plan-Growth option. According to the fund house, a lump sum investment of Rs 10,000 at inception would have grown to around Rs 33,800 as of June 30, 2026. The fund returned 15.08 per cent CAGR over the past three years, while the one-year return stood at 3.61 per cent.

 

 

What is a large & mid-cap fund?

 

Under Sebi's categorisation, large & mid-cap funds are required to invest at least 35 per cent each in large-cap and mid-cap stocks. This gives investors exposure to established companies that can provide relative stability, while also participating in the growth potential of emerging businesses.

 

Such funds can suit investors who find pure mid-cap funds too volatile but want higher return potential than a typical large-cap fund.

 

Why are fund managers optimistic?

 

According to Axis Mutual Fund, India's long-term growth continues to be supported by structural factors such as rising consumption, manufacturing, increasing private-sector investment and the formalisation of the economy.

 

To reflect these themes, the fund has repositioned its portfolio over the past six months by increasing exposure to sectors such as auto components, electrical equipment and industrial products. It has also reduced the number of domestic equity holdings from 96 to 81, signalling a more concentrated portfolio of high-conviction ideas. The fund has also increased its exposure to overseas markets, including companies linked to the artificial intelligence theme

 

"India's growth journey continues to be supported by structural drivers such as rising consumption, increasing focus on manufacturing, formalisation of the economy, increasing private-sector investment and improving competitiveness across sectors. In such an environment, we believe investors can benefit from a portfolio that combines established market leaders with emerging businesses that have the potential to scale over time," said Shreyash Devalkar, Head-Equity, Axis Mutual Fund.

 

Should you invest?

 

Large & mid-cap funds can be suitable for investors with a long-term investment horizon of at least five to seven years who are comfortable with equity market fluctuations but want a more balanced portfolio than a pure mid-cap strategy.

 

However, experts advise investors not to choose a mutual fund based solely on past returns. Before investing, compare factors such as the fund's long-term consistency, portfolio quality, risk-adjusted performance, expense ratio and whether it fits your financial goals and asset allocation.