LIC Large and Mid-cap Fund: Promising large and midcap fund for long term investors

Current market scenario

An uneasy peace has hung in balance in the Middle East, after United States and Iran agreed on a 15-day ceasefire in early April. Though the Strait of Hormuz remains shut, Brent crude price has retreated from $110 per barrel level to below $95 a barrel. The Nifty recovered by almost 2,000 points, bouncing back from its 52-week low of 22,331 to 24,500 level. In current market conditions large and midcap funds may be suitable for long-term investors. Equities may make a strong recovery if lasting ceasefire deal can be agreed and energy flows restored in the Gulf region. The sharp correction during the 40-day war between US / Israel and Iran brought down valuations to relatively attractive levels, especially in the large and midcap segments (please see the chart below). In current market conditions, large and midcaps may offer attractive investment opportunities for long term investors.

Source: NSE, Advisorkhoj Research Data as on 31^st March 2026

In this article we will review the LIC Large and Midcap Fund which has a track record of 16+ years of wealth creation, with impressive performance even in recent times.

What are large and midcap funds?

Large and Midcap funds are equity funds with a diversified portfolio and as per the SEBI mandate they invest a minimum of 35% each in large cap and midcap stocks. The remaining 30% of the portfolio can be invested at the discretion of the fund manager. Large Cap stocks are the top 100 stocks by market capitalization, whereas the midcap stocks belong to the 101^st to 250^th stock by market capitalization in India. Large cap allocation in these funds offers potential stability during volatile market conditions, and provides downside protection, whereas the Midcap stocks offer a higher growth potential leading to potential capital appreciation in the long term.

Why invest in Large & Mid Cap Funds now?

• The chart below shows the growth of Rs 10,000 investment in Nifty Large Midcap 250 TRI versus Nifty 50 TRI over the last 20 years. You can see that the large and midcap index large was able to deliver higher capital appreciation compared to Nifty 50 TRI
  
  

  

  Source: NSE, Advisorkhoj Research Data as on 31^st March 2026



• The chart below shows the 5 year rolling returns of Nifty Large Midcap 250 TRI versus Nifty 100 TRI over the last 20 years. You can see that large and midcaps, was able to outperform large caps over 5 year investment tenures.
  
  

  

  Source: NSE, Advisorkhoj Research Data as on 31^st March 2026



• The table shows the major drawdowns of the market over the last 20 years. You can see that large and midcaps experienced smaller drawdowns compared to midcaps and small caps.
  
  

  

  Source: NSE, Advisorkhoj Research Data as on 31^st March 2026. Large & Midcap is represented by Nifty Large Midcap 250 TRI, midcap by Nifty Midcap 150 TRI and small cap by Nifty Small Cap 250 TRI

Wealth Creation with LIC Large and Midcap Fund

A monthly SIP of Rs 10,000 would have accumulated a corpus of Rs 26.9 lakhs against a cumulative investment of Rs 13.4 Lakhs since inception of the scheme.

Source: Advisorkhoj Research as on 31^st March 2026

Portfolio Positioning: Balanced market cap mix with higher allocations to small caps relative to peers

The scheme (in blue) is currently reasonably well balanced between market caps. The small cap allocation of the fund is among the highest in the category - alpha creation potential in the long term.

Source: LIC MF, Advisorkhoj Research as on 31^st March 2026

Current portfolio positioning

Source: Fund Factsheet, as on 31^st March 2026

Regular cash-flows through SWP

The chart below shows the cumulative withdrawals and current value of Rs 50,000 monthly SWP from Rs 1 Crore invested in LIC MF Large and Mid-Cap Fund at the inception of the scheme. Let us assume you began your withdrawals 1 year after your investment to avoid exit load and short-term capital gains taxation. Despite withdrawing more than Rs 61 lakhs over the last 10 years, your investment would have multiplied more than two times to Rs 2.31 crores (as on 31^st March 2026). For moderate rates of withdrawal LIC MF Large and Mid-Cap Fund has the potential of generating long term cash-flows for investors along with potential capital growth.

Source: Advisorkhoj Research as on 31^st March 2026

Who should invest in LIC MF Large & Midcap Fund?

• The fund is suitable for the investors who are looking for capital appreciation with a long-term investment horizon.


• Those who have moderately high-risk appetite and may want to invest in both large-cap and mid-cap stocks.


• Those who would like to invest in stocks of large cap & midcap category.


• You can invest either in lump sum or SIP depending on your financial situation and investment needs.


• If you are worried about volatility, you can also invest in the scheme through 3 to 6 months Systematic Transfer Plan (STP) from LIC MF Liquid Fund.


• Those who have an investment horizon of more than 3 years.

Investors should consult with their financial advisors or mutual fund distributors if LIC MF Large & Midcap Fund is suitable for their investment needs.