Motilal Oswal Large and Midcap Fund: A clear winner in Large and Midcap Funds

Current market context

The market has made a decisive recovery and its inching back towards all-time high. Fiscal consolidation, cooling inflation and growth oriented fiscal policies (e.g., GST rate rationalization) have boosted investor sentiments. FII flows turned positive in October. Progress in Indo US trade talks and a growth oriented Budget may provide further tailwinds to the market in the coming months.

Valuation scenario

Large cap valuations seem reasonable and while midcap valuations are at a premium to large caps, valuations have moderated in midcap segment also. Strong midcap earnings growth in the last few quarters may take midcaps higher in the next phase of the rally, despite midcaps trading at premium to large cap.

Source: National Stock Exchange, as on 31^st October 2025

About large and midcap funds

Large and midcap funds are diversified equity funds which invest primarily in large cap (top 100 stocks by market capitalization) and midcap (101^st to 250^th stocks by market cap). According to SEBI’s mandate large and midcap funds must have minimum 35% allocation each in large cap and midcap stocks. Large and midcap funds have the solidity of large caps and growth potential of midcaps (see the table below). In this article, we will review Motilal Oswal Large and Midcap Fund one of the best performing funds in this category.

Source: Advisorkhoj Research, as on 18^th November 2025.

Motilal Oswal Large and Midcap Fund – Wealth creation story

Motilal Oswal Large & Midcap Fund was launched in October 2019. With a monthly SIP of Rs 10,000) since the inception of the fund (cumulative investment of Rs 7.3 lakhs, you could have accumulated a corpus of nearly Rs 15.7 lakhs (see the chart below).

Source: Advisorkhoj Research, as on 18^th November 2025.

Consistently outperformed versus peers across different market conditions

The chart below shows the 3 year rolling returns of Motilal Oswal Large & Midcap Fund versus the category average rolling returns. You can see that the fund has consistently outperformed the category average since the inception of the fund.

The fund was able to deliver superior risk / return trade off compared to peer average (see the table below).

Source: Advisorkhoj Research, as on 18^th November 2025. Fund – Motilal Oswal Large and Midcap Fund (Regular, Growth). Category – Large and Midcap category average

Consistently a top quartile performer

Consistency is one of the most important performance attributes of a mutual fund scheme. The graphic below shows the quartile rankings of Motilal Oswal Large and Midcap Fund for the last 12 quarters. You can see that the fund has been in the top 2 quartiles in 11 out of last 12 quarters and in the top quartile in 10 out of last 12 quarters.

Source: Advisorkhoj Research, as on 30^th September 2025

Consistently outperformed benchmark index across different market conditions

The chart below shows the 3 year rolling returns of Motilal Oswal Large & Midcap Fund versus its benchmark index Nifty Large Midcap 250 TRI. You can see that the fund has consistently outperformed the benchmark index most of the times.

Source: Advisorkhoj Research, as on 18^th November 2025. Fund – Motilal Oswal Large and Midcap Fund (Regular, Growth). Benchmark – Nifty Large Midcap 250 TRI

Highest alpha in its category

Source: Advisorkhoj Research, as on 31^st October 2025.

Investment strategy

• Invests in a mix of high quality Large and mid-cap companies


• Aims to create a high growth and low volatility portfolio


• Focused on investing in industry leaders, positioned to benefit from market consolidation


• Identifying companies with competitive advantages that can enable sustained profitability

Investment Process (Q-G-L-P)

Current portfolio positioning – More balanced market cap allocations relative to peers

Source: Motilal Oswal MF, Advisorkhoj Research, as on 31^st October 2025.

Current portfolio positioning – Top 5 sectors and stocks

Source: Motilal Oswal MF, as on 31^st October 2025

Why invest in Motilal Oswal Large and Midcap Fund?

• Portfolio construction oriented towards delivering long term stable growth with low to moderate volatility


• Top down sector/theme view combined with bottom up stock selection


• Diversification across sectors; Basket approach to play identified themes in the portfolio


• Quality and Growth oriented equity style with focus on industry leaders

Why should invest in Motilal Oswal Large and Midcap Fund?

• Investors looking for capital appreciation and wealth creation


• Investors should have at least 5 year investment horizon in this scheme


• This fund can be suitable for new or first time investors


• Investors with very high risk appetite


• Investors can invest in this scheme either through lump sum or SIP depending on your investment needs

Investors should consult with their financial advisors or mutual fund distributors if Motilal Oswal Large and Midcap Fund is suitable for their investment needs.