The Wealth Company Large and Midcap Fund NFO: Potential Growth and relative stability in a single investment

The Wealth Company mutual fund has launched its NFO, The Wealth Company Large and Midcap Fund NFO, which - is opened on 21^st May 2026 and will close subscription on 4^th June 2026. The fund is an equity scheme investing in large and mid-cap stocks. In this article, we will review the fund and understand why this fund can be a good addition to your portfolio in the current times.

Current Market Scenario

The market rebounded from its 52-week low after the ceasefire was agreed upon between the United States and Iran (Source: NSE, Period: 31.03.2025 to 30.04.2026). The Strait of Hormuz remains shut, and crude oil prices shot up again. The market is range-bound but continues to be volatile. Global markets may bounce back if a lasting ceasefire can be agreed upon between United States and Iran. The long-term outlook of Indian equities remains positive with stable macros, strong growth in consumption demand driven by per capita income growth, tax reforms, rising affluence, demographic advantages and shifting consumption patterns. In current uncertain market conditions large and midcap funds may provide a mix of stability and potential growth for long term investors.

What are Large and Midcap Funds?

According to SEBI's directive, 'Large &Midcap Fund' category scheme must mandatorily invest at least 35% of its assets in equity and equity related securities of large-cap companies and at least 35% of its assets in equity and equity related securities of midcap companies . SEBI classifies the top 100 stocks by market capitalization as large-cap stocks and the next 150 as mid-cap stocks. While SEBI prescribes minimum allocations to large- and mid-cap stocks, fund managers retain discretion over the remaining portfolio based on their assessment of investment opportunities

Why large and Midcap Funds?

• Capturing the Strengths of Both Market Segments: Large and Midcap funds tap into the core of the market where scale and opportunity intersect- large cap with its relatively higher market cap, information visibility, and stability, and midcaps with their higher return potential, and growth potential but at the same time more volatility.


• Winners rotate across market cap segments: The chart below shows the annual returns of large cap (Nifty 100 TRI), midcap (Nifty Midcap 150 TRI) and small cap (Nifty Small Cap 250 TRI) indices for the last 15 years. A diversified portfolio of large-cap and mid-cap stocks may produce long-term returns while reducing downside risk in volatile markets.
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research; as on 30^th April 2026. Large cap is represented by Nifty 100 TRI, midcap by Nifty Midcap 150 TRI and small cap by Nifty Small Cap 250 TRI. Disclaimer: Past performance may or may be sustained in the future



• Large and midcaps v/s the broad market index: The chart below shows the calendar year returns of large and midcap index (Nifty Large Midcap Index 250 TRI) and the broad market index (Nifty 500 TRI) over the last 15 years. You can see that Nifty Large and Midcap 250 TRI outperformed Nifty 500 TRI, 11 times in the last 15 years.
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research; as on 30^th April 2026. Disclaimer: Past performance may or may be sustained in the future



• Lower downside risks compared: The chart 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. Disclaimer: Past performance may or may be sustained in the future



• Mix of growth and stability: The table below shows the median rolling returns and standard deviation of the rolling returns over different investment tenures (1 year, 3 year and 5 year) for different market cap segments over the last 20 years. You can see that large and midcaps were able to perform than large caps over different investment tenures. At the same time, the volatility of large and midcaps was lower than midcaps and small caps across investment tenures.
  
  

  

  Source: Advisorkhoj Research, as on 31^st March 2026. Large cap is represented by Nifty 100 TRI, Large and Midcaps by Nifty Large Midcap 250 TRI, Midcap by Nifty Midcap 150 TRI and Small cap by Nifty Small Cap 250 TRI. Disclaimer: Past performance may or may be sustained in the future



• Diversified industry sector exposure: Large cap indices like Nifty 100 has a heavier tilt towards certain sectors like BFSI, IT, Oil and Gas, FMCG. Large and midcaps provide exposure to sectors where large caps where have no presence e.g. textiles, media and entertainment etc. Furthermore, Large and midcaps provide more balanced exposure to sectors like Healthcare, Capital Goods, Consumer Durables, Consumer Services, Realty, Chemicals, Textiles etc where large cap exposure is low. These sectors can benefit from India's consumption driven economic growth, rising per capita income, changing global trade dynamics, Government's policies e.g. import substitution (Make in India), digitization, infrastructure spending, shift from unorganized to organized sectors etc.
  
  

  

  Source: NSE, as on 30^th April 2026. Large cap is represented by Nifty 100 and large & midcap by Nifty Large Midcap 250 indices.

Why is this a good time to invest in Large and Midcap Fund?

• Valuations have moderated: Market has been volatile for past 18 months. FII sell-offs, relatively high valuations, US trade policies, armed conflicts in the Middle East (e.g. 12-day Israel Iran War in June 2025 and 40-day US Iran War in 2026) and surging crude oil prices have been driving volatility. Ongoing volatility have brought down valuations to reasonable in the large and midcap segments.
  
  

  

  Source: National Stock Exchange, Advisorkhoj Research; as on 30^th April 2026. Disclaimer: Past performance may or may not be sustained in the future



• India as a Compelling Growth Opportunity: India remains the fastest-growing major economy, supported by strong domestic demand and macro stability.
  
  

  

  Source: IMF; World Bank; EM and FE - Emerging market and developing economies; AE - Advanced economies; KPMG



• Manufacturing momentum continues to reinforce India's economic growth trajectory: From Apr'25 to Feb'26, India's manufacturing and services PMIs remained firmly in expansion territory, supported by robust domestic demand, resilient export orders, and GST-led consumption relief.
  
  

  

  Source: Wealthco Fund presentation. https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2026/04/decoding-the-indian-economy-2026.pdf



• Healthy and steady inflows (INR 5,307 Cr in Mar-26) offer diversified exposure across market caps.
  
  

  

  Source: https://www.amfiindia.com/uploads/AMFI_Monthly_Note_Mar_2026_1f0a1f5c48.pdf. Past performance may or may not sustain in future.

Why The Wealth Company Large and Midcap Fund?

The Wealth Company strategy is based on the pillars of a proprietary framework that creates an investment funnel. The entire framework is backed by a strong and experienced team.

Proprietary frameworks

Large & Mid Cap stocks are widely researched, based on the Relativity Analysis Framework and a Growth Deconstruct Framework, leaving little scope for unique insights. Hence, the portfolio strategy is focused more on asset allocation than individual stock picking.

Stock selection: CHANGE and EDGE framework

1. CHANGE is a disciplined framework employed by the fund managers to identify scalable, resilient and high-quality businesses where each letter of the acronym stands for:
   
   

   



2. Framework for stock-selection: EDGE
   
   

   The fund managers also employ EDGE- a multi-dimensional lens to assess market direction and positioning.

   
   

   

Unique Investment Funnel:

A portfolio of 40-50 stocks (tentative) is created with a private equity-type deep dive into due diligence of the stocks filtered from the universe of 5,500 listed stocks. The filtration process takes place over several stages, for the final stocks selected. The number of stocks mentioned are tentative and for understanding purposes only. However, final portfolio can have a higher or lower number of stocks as well, depending on prevailing market conditions. Portfolio will be managed as per the stated Investment objective.

1. Listed Stock Universe (5500 stocks): Proprietary scientific filters based on the following parameters is engaged to select about 400 stocks (the potential capital multiplier universe) from the total universe.
   
   

   



2. The stocks undergo several more stages of filtration based on the parameters like ROCE, past growth, prospects, and earnings momentum, etc.
   
   

   



3. Stock portfolio (40-50 stocks): The stocks so selected are tested on promoter behaviour, succession visibility, strategic intent, financial, legal, and forensic due diligence, and any red flags, and channel checks.

Who should invest in The Wealth Company Large and Midcap Fund?

The fund may be suitable for an investor:

1. who has an investment horizon of five years or longer.


2. who is considering investing in a blended participative mode by investing in the top 250 companies.


3. who is looking at core portfolio investments, and could consider the fund that invests in large & mid cap companies.


4. who is aware of market volatility, especially in midcaps, and is therefore looking forward to the addition of large caps for potential stability.

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