Large & Mid-Cap Funds Offer Balanced Returns and Volatility

Investors often wonder whether to invest in large-cap funds, mid-cap funds, or a mix of both.

A study by Abakkus Mutual Fund found that large & mid-cap funds offer a good balance.

They provide higher returns than large-cap funds but with lower volatility than mid-cap funds.

Over one year, large & mid-cap funds returned 3%, compared to 6% for mid-cap funds and -1% for large-cap funds.

Over three years, large & mid-cap funds returned 16%, compared to 11% for large-cap funds and 21% for mid-cap funds.

Over ten years, large & mid-cap funds returned 16%, compared to 13% for large-cap funds and 18% for mid-cap funds.

In terms of volatility, large & mid-cap funds had a standard deviation of 15% over one year, compared to 16% for mid-cap funds and 15% for large-cap funds.

Over three years, large & mid-cap funds had a standard deviation of 15%, compared to 14% for large-cap funds and 17% for mid-cap funds.

Over ten years, large & mid-cap funds had a standard deviation of 16%, compared to 16% for large-cap funds and 18% for mid-cap funds.

This shows that large & mid-cap funds offer a balanced investment option with moderate returns and volatility.