A Comparative Performance Evaluation Between Large-Cap and Mid-Cap Mutual Fund Returns

Abstract

In Indian capital market provide various investment avenues to the investors, to help them to invest in various industries and ensure the profitable return. Among various financial products, a mutual fund ensures minimum risks and maximum return to the investor. Mutual fund industry has grown extensively in the last five years and has become a popular mode of investment.  There are umpteen numbers of schemes available to the investor based on capitalisation of the company such as large cap, mid cap and micro cap funds. This study attempts to measures the risk adjusted performance of large cap and mid cap funds based on several parameters and know which fund has performed better and led to better wealth creation for an investor in the last five years. For this purpose, five different Asset Management Companies have been chosen for the study and under each Asset Management Company, two funds- one large cap fund and one midcap fund have been studied. Based on the study conducted , it is clear that Mid cap funds have shown better performance than Large cap funds in the last five years and it is likely that the same trend will continue in the next five years.

Keywords: Large-cap and Mid-cap mutual funds, Absolute returns, Performance, Risk.