- June 11, 2026
What Are Large & Midcaps Mutual Funds? Contrarian Investing Gains Ground
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In the current investment climate, torn by the Iran-US-Israel war, contrarian investing is gaining ground.
According to the mutual fund data for May 2026 from Amfi, the large and midcap category saw an inflow of Rs 3,278.22 crore, lower that the Rs 4,490.49 crore recorded in April 2026.
In the current investment climate, torn by the Iran-US-Israel war, contrarian investing is gaining ground. Simply put, contrarian investing means that the worse things seem in the market, the better the opportunities are for profit. As the name implies, contrarians try to do the opposite of the crowd. They get excited when an otherwise good company has a sharp but undeserved drop in share price. Just like the present lows in the market where the fall is an outcome of conflict and global uncertainty, the fall is not due to the fundamentals of the companies.
“Buying during such times is an opportunity and investing in mutual funds with a portfolio in large and mid-cap companies makes a good strategy,” Pankaj Mathpal, the founder of Optima Money.
He said the recent decline in equities has narrowed India’s valuation premium, removed the excessive hike in equity prices and has positioned large companies at more comfortable levels. Investing via the mutual fund route is a sound investment strategy for investors.
The Indian economy remains one of the strongest in the world. India’s economy grew 7.7 per cent in the financial year 2025-26, accelerating from 7.1 per cent in the previous year, beating estimates despite global uncertainties, according to the latest official data. In the January-March quarter (Q4FY26), the Indian economy expanded 7.8 per cent year-on-year, higher than the 7.0 per cent growth recorded in the corresponding quarter of the previous fiscal.
Large and mid-cap mutual funds have been performing well over the last few years. Leading the pack is the Nippon India Vision Large and Midcap Fund, which is one of the oldest funds in the category. The fund has given a three-year annualised return of close to 17.91%. Large and mid-cap mutual funds from ICICI, Bandhan and Invesco have also given double-digit returns over a three-year period. ICICI gave a return of 16.41%, while large and multi-cap funds from Bandhan and Invesco clocked in returns of 15.33% and 14.97% in the last three years.
According to the mutual fund data for May 2026 from Amfi, the large and midcap category saw an inflow of Rs 3,278.22 crore, lower that the Rs 4,490.49 crore recorded in April 2026. Mid-cap and small-cap funds continued to attract sizeable inflows of Rs 4,385 crore and Rs 4,946 crore respectively. Together, the two categories accounted for over Rs 9,300 crore of fresh investments during the month.
Large-cap funds also saw inflows decline to Rs 1,593 crore from Rs 2,525 crore in April, while ELSS funds remained in outflow territory for another month.
Disclaimer:Disclaimer: The views and investment tips shared in this article are for general information purposes only. Readers are advised to consult a certified financial advisor before making any investment decisions.
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