The rule behind "best"
"Best" is not one thing, so this post fixes a rule and applies it the same way in every category of this series. Of the 26 large and mid cap funds with a 3-year record, 22 are open to new money, hold at least ₹1,000 crore (average AUM, July–September 2026) and have a 5-year record. They are ranked by 3-year compounded annual return, Direct plan, Growth option, from NAVs to 27 October 2026. On that rule the leader is Invesco India Large & Mid Cap Fund at 20.78% a year, against a category median of 12.68%. The same fund tops the list with no filter applied.
A large and mid cap fund must keep at least 35% in large caps and at least 35% in mid caps. That fixed split sits between a large cap fund and a mid cap fund, so its returns and falls usually sit between the two as well.
The top five
| Fund | 1 year | 3 years | 5 years | 10 years | Expense ratio | AUM (₹ crore) |
|---|---|---|---|---|---|---|
| Invesco India Large & Mid Cap Fund | −0.69% | 20.78% | 15.11% | 16.64% | 0.79% | 12,010 |
| Motilal Oswal Large and Midcap Fund | 0.06% | 20.64% | 17.21% | – | 0.90% | 19,326 |
| HSBC Large & Mid Cap Fund | 2.78% | 16.77% | 12.78% | – | 1.35% | 5,668 |
| Bandhan Large & Mid Cap Fund | −3.86% | 16.63% | 14.46% | 15.31% | 1.14% | 20,292 |
| Quant Large & Mid Cap Fund | 3.74% | 14.61% | 13.88% | 15.08% | 1.22% | 3,477 |
| Category median | −4.27% | 12.68% | 10.67% | – | – | – |
Returns of a year or more are compounded annual rates. Invesco India Large & Mid Cap Fund leads the median by 8.10 points a year over three years, and Motilal Oswal Large and Midcap Fund follows at 20.64%.
Risk: what the lead cost
| Fund | Volatility (3 yr) | Worst fall (3 yr) | Sharpe ratio | Alpha vs Nifty 500 TRI |
|---|---|---|---|---|
| Invesco India Large & Mid Cap Fund | 16.8% | −18.6% | 0.85 | 10.4% |
| Motilal Oswal Large and Midcap Fund | 19.4% | −26.1% | 0.73 | 10.2% |
| HSBC Large & Mid Cap Fund | 17.7% | −25.1% | 0.58 | 6.3% |
Volatility is the annualised standard deviation of daily returns; the worst fall is the deepest peak-to-trough drop in the last three years. The Sharpe ratio uses a 6.5% risk-free rate. Alpha is the fund's return above what its beta to the benchmark predicts.
What a monthly SIP earned
| Fund | 3-year SIP return (a year) | 5-year SIP return (a year) |
|---|---|---|
| Invesco India Large & Mid Cap Fund | 9.44% | 16.97% |
| Motilal Oswal Large and Midcap Fund | 9.77% | 18.29% |
| HSBC Large & Mid Cap Fund | 7.82% | 14.32% |
| Category median | 2.07% | 10.22% |
SIP returns are annualised (XIRR) for ₹10,000 a month. They differ from lump-sum returns because each instalment buys at a different price.
Same rule, different crowns
5 different funds take the five measures below, which is the point: the answer depends on what you ask.
| Measure | Fund | Value |
|---|---|---|
| Best 1-year return | Quant Large & Mid Cap Fund | 3.74% |
| Best 5-year return | Motilal Oswal Large and Midcap Fund | 17.21% |
| Lowest expense ratio | Kotak Large & Mid Cap Fund | 0.66% |
| Lowest volatility | SBI LARGE & MIDCAP FUND | 12.9% |
| Highest Sharpe ratio | Invesco India Large & Mid Cap Fund | 0.85 |
The top two funds are within 0.14 points of each other on 3-year return, so the order between them could flip next week. The better question is how they differ on risk: the second fund fell far deeper than the first in the last three years.
More in this series
Best large cap fund · Best mid cap fund · Best small cap fund · Best flexi cap fund · Best ELSS fund · Best aggressive hybrid fund · Best multi asset fund · Best short duration fund · Best gilt fund
What this ranking cannot tell you
It looks backward over a single window. It ignores the fund house, the manager's tenure, the portfolio and its overlap with what you already own. Past returns do not predict future ones, and a fund's rank can change with the next month's NAV. For any fund here, open its page to see the full record, and use the compare tool to set two side by side. This is a data read-out, not advice to buy or sell.
Frequently asked questions
Which is the best large and mid cap fund in India in 2026?
On this rule (open-ended, at least ₹1,000 crore AUM, a 5-year record, ranked by 3-year return, Direct plan, Growth option), Invesco India Large & Mid Cap Fund, at 20.78% a year to 27 October 2026, against a category median of 12.68%. A different rule can give a different answer.
Does the best large and mid cap fund by 3-year return also lead over 1 and 5 years?
Not entirely. Among the eligible funds, Quant Large & Mid Cap Fund leads over one year at 3.74% and Motilal Oswal Large and Midcap Fund leads over five years at 17.21%; Invesco India Large & Mid Cap Fund returned −0.69% and 15.11%.
Which large and mid cap fund has the lowest expense ratio?
Kotak Large & Mid Cap Fund, at 0.66% for the Direct plan among the eligible funds. Invesco India Large & Mid Cap Fund charges 0.79%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
Best large cap fund in 2026: Invesco India leads
Best large cap fund of 2026 on one rule: Invesco India Large Cap Fund at 13.67% a year over 3 years vs a 9.98% median. Top five, risk, SIP.
Best mid cap fund in 2026: Invesco India leads
Best mid cap fund of 2026 on one rule: Invesco India Mid Cap Fund at 21.41% a year over 3 years vs a 15.43% median. Top five, risk, SIP.
Four biggest large and mid-cap funds compared in 2026
The four biggest large and mid-cap funds, compared on returns, calendar years, risk, SIP results and cost. 3-year range 10.13% to 12.19% a year.