Are you seeking a mutual fund that balances stability and high-growth potential? If so, the Motilal Oswal Large and Midcap Fund – Direct Growth could be a strong addition to your portfolio. This equity mutual fund combines the resilience of large-cap stocks with the dynamism of mid-cap companies, delivering exceptional returns in recent years.
Motilal Oswal Large and Midcap Fund Overview
The Motilal Oswal Large and Midcap Fund is an open-ended equity mutual fund that primarily invests in a mix of large and mid-cap companies. While large-cap stocks offer relative stability, mid-caps provide faster growth potential. As a result, the fund aims to deliver long-term capital appreciation through a diversified portfolio.
- Fund Category: Large and Midcap
- Fund Type: Direct – Growth
- Benchmark: Nifty LargeMidcap 250 TRI
- Fund Launch Date: December 29, 2009
- Fund House: Motilal Oswal Asset Management Company
Key Fund Facts (as of May 16, 2025)
| Parameter | Value |
|---|---|
| NAV | ₹35.45 |
| AUM | ₹9,176.39 crore |
| Expense Ratio | 0.65% |
| Minimum SIP Investment | ₹500 |
| Exit Load | 1% if redeemed within 15 days |
| Risk Level | Very High |
Importantly, the fund maintains a relatively low expense ratio compared to others in its category, which makes it more attractive for cost-conscious investors.
Motilal Oswal Large and Midcap Fund Performance
When it comes to performance, this fund has consistently outperformed both its benchmark and category averages. Consequently, it ranks among the top mutual funds in its segment.
| Period | Returns |
|---|---|
| 1-Year | 22.0% |
| 3-Year CAGR | 33.5% |
| 5-Year CAGR | 33.7% |
| Since Inception | 25.4% annualized |
Clearly, these returns make a strong case for long-term investment. However, investors should always consider market risks before investing.
Investment Return Calculator
Portfolio Strategy & Top Holdings
The fund follows a high-conviction strategy, meaning it focuses on select quality stocks. Moreover, it emphasizes businesses with consistent earnings growth, high return ratios, and competitive advantages.
Top Holdings:
- Eternal Ltd – 5.67%
- Trent Ltd – 5.06%
- Bharat Dynamics Ltd – 4.26%
- Bharat Electronics Ltd – 3.90%
- Bharti Airtel Ltd – 3.87%
These top holdings reflect the fund’s preference for market leaders with solid fundamentals.
Sector Allocation:
| Sector | Allocation |
|---|---|
| Industrials | 36.33% |
| Consumer Cyclical | 22.62% |
| Financial Services | 14.59% |
In terms of diversification, the fund spreads its investments across key growth sectors. This helps reduce risk and improves the chances of higher returns.
Fund Management Team
The Motilal Oswal Large and Midcap Fund is managed by a team of experienced professionals:
- Equity Component: Managed by Mr. Aditya Khemani since the fund’s inception. He brings over 14 years of experience in equity fund management.
- Debt Component: Managed by Mr. Rakesh Shetty, who took over on November 22, 2022. He has more than 14 years of experience in the financial industry.
- Foreign Securities: Managed by Mr. Ankush Sood, appointed on November 11, 2022.
Under their leadership, the fund has seen a sharp uptick in performance. Additionally, the fund managers use a bottom-up stock-picking approach that focuses on business fundamentals.
Risk-Adjusted Metrics
| Metric | Value (5-Year) |
|---|---|
| Sharpe Ratio | 1.31 |
| Beta | 0.99 |
| Alpha | 3.03 |
These metrics indicate that the fund has delivered strong risk-adjusted returns. Notably, the high Sharpe Ratio reflects better returns for the risk taken. Meanwhile, a beta close to 1 shows that the fund moves in line with the market, reducing extreme volatility.
Who Should Invest in Motilal Oswal Large and Midcap Fund
This fund is suitable for:
- Long-term investors seeking wealth creation over a 5+ year horizon
- Those with a high-risk appetite looking to capitalize on growth opportunities
- Individuals who want a balanced exposure to both large-cap and mid-cap stocks
Moreover, if you are looking to beat inflation and grow your savings steadily, this fund offers a compelling option.
Final Verdict
To sum up, the Motilal Oswal Large and Midcap Fund – Direct Growth stands out due to its superior returns, solid stock-picking strategy, and professional management. While it does come with a higher risk level, the potential rewards are equally significant. Therefore, if you’re planning to invest for the long term and can handle market fluctuations, this fund may fit well into your portfolio.
As always, remember to assess your financial goals and consult a financial advisor before making any investment decisions.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
