The comparison
Large-cap funds hold the 100 biggest listed companies. Mid-cap funds hold companies ranked roughly 101 to 250 by market value. Mid-caps are usually the more volatile of the two. The question this post asks is simple: over the last three years, how much extra return did the median fund in each category earn, and how much worse was its worst fall?
All figures are medians of direct-plan growth schemes as of 2 November 2026.
| Category | Funds | 1Y | 3Y CAGR | 5Y CAGR | Worst fall (3Y) | Volatility |
|---|---|---|---|---|---|---|
| Large Cap | 38 | −5.0% | 10.7% | 8.3% | −16.4% | 13.5% |
| Large & Mid Cap | 39 | −2.5% | 13.1% | 10.8% | −18.7% | 14.9% |
| Mid Cap | 36 | −0.5% | 15.5% | 13.8% | −21.2% | 16.3% |
| Small Cap | 41 | 2.6% | 13.2% | 13.0% | −24.2% | 17.0% |
Returns beyond one year are annualised. Volatility is the annualised standard deviation of daily returns over the trailing three years.
The gap in numbers
| Horizon | Mid Cap minus Large Cap |
|---|---|
| 1 year | +4.5 points |
| 3 years (annualised) | +4.8 points |
| 5 years (annualised) | +5.5 points |
On every horizon the median mid-cap fund led the median large-cap fund. Note that one-year medians are negative for large-cap and mid-cap alike: the lead was a smaller loss, not a gain.
What the extra return cost
Mid-cap's lead came with a deeper fall. The median mid-cap fund's worst peak-to-trough drop over three years was 21.2%, against 16.4% for large-cap, 4.8 points worse. Its volatility was 16.3% against 13.5%.
One way to view the trade-off is to divide the three-year return by the three-year worst fall. This is our own illustrative ratio, not an industry statistic:
| Category | 3Y CAGR ÷ worst fall |
|---|---|
| Mid Cap | 0.73 |
| Large Cap | 0.65 |
| Large & Mid Cap | 0.70 |
| Small Cap | 0.55 |
By this measure mid-cap paid more per unit of fall than large-cap, while small-cap paid the least. The small-cap median 3Y return (13.2%) is lower than mid-cap's even though its fall was the deepest (24.2%).
What a −21% fall feels like
Numbers like "worst fall 21.2%" are easy to read and hard to live through. A ₹10 lakh investment in the median mid-cap fund at its high would, at the trough, be worth about ₹7.88 lakh. The same amount in the median large-cap fund would be ₹8.36 lakh. Neither is comfortable. Which one you can hold through depends on your horizon and temperament, which is why category choice is often a question about behaviour rather than arithmetic. The site's guide to matching the fund to the goal date takes that angle.
Caveats
- Medians hide the spread. Within each category the best and worst funds differ by many points. See the best-minus-worst gaps by category.
- A three-year window is one slice. The mid-cap lead rests on one stretch of market history; over a different three years the gap can narrow or reverse.
- Benchmarks differ. The funds are compared with each other here, not with a benchmark. For benchmark questions, see TRI vs price index.
- Expense ratios matter. These are direct-plan returns; regular plans earn less by the commission difference.
You can filter funds by category and sort by any of these measures on the screener.
Medians of direct-plan growth schemes with computed history, as of 2 November 2026. Past performance does not indicate future results.
Frequently asked questions
How are the medians calculated?
For each category we take direct-plan growth schemes with a computed history, exclude segregated portfolios and IDCW duplicates, and report the middle value. Mid-cap has 36 funds, large-cap 38 and small-cap 41.
What is max drawdown?
It is the largest peak-to-trough fall in a fund's NAV over the trailing three years. A 21.2% median means the typical mid-cap fund at some point lost about a fifth of its value from a prior high.
Is mid-cap better than large-cap?
This post compares historical outcomes, not a recommendation. Over one year the gap points the same way (-0.5% vs -5.0%), but past medians say little about which category leads next.
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
Large, mid or small cap: where should the next rupee go?
Small-cap funds led on 1, 5 and 10 years to 1 October 2026, with the deepest falls. Large caps trade below their usual P/E. How to weigh the three.
Multi-asset funds vs flexi-cap: 13.6% vs 11.9% over 3 years
The median multi-asset fund returned 13.6% a year over three years with a 10.5% worst fall; flexi-cap 11.9% with an 18.5% fall. Hybrid medians compared.
Best large-cap fund's year trails the median small cap
To 19 October 2026 the best large-cap fund returned 4.4% in a year; the median small-cap fund 7.9%. One-year return ranges for 11 equity categories.