Nifty LargeMidcap 250 index fund can make a lot of money…: Radhika Gupta on 2026 bets

Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, believes that simple, low-cost investing can be powerful—especially for young Indians starting their journey in 2026. Speaking on a recent podcast hosted by finance creator Kushal Lodha, Gupta broke down how beginners should think about investing small amounts and why a Nifty LargeMidcap 250 Index Fund can be a strong long-term choice.

Breaking down investing for first-time earners, many in the 20s, Gupta said beginners often overthink their first step. “Let’s break down this Rs 1,000 first,” she said, explaining that investing should start small and scale up gradually. To avoid confusion, she narrowed choices to just two profiles: aggressive investors and conservative or moderate ones.

For those willing to take equity risk, Gupta recommended keeping things straightforward. “If you are aggressive, choose a simple solution—invest in a large-and-mid-cap 250 index fund,” she said. The index gives investors exposure to India’s top 250 listed companies, spread across sectors and market capitalisations. “If you do just this consistently for the next 15 years, you can make a lot of money,” she added.

She likened this approach to a basic meal — daal chawal, which is dependable, filling and sufficient on its own. More tactical or thematic investments can always be added later, but a broad-market index fund forms a solid foundation. Think of this as your basic dal and rice. You can add pickle, chutney or papad later, but if you just buy the Indian stock market represented by the top 250 companies, that alone is sufficient.”

For someone earning around Rs 6 lakh annually, she suggested a Rs 10,000 monthly SIP in a large-and-mid-cap index fund as a practical starting point.

Importantly, she emphasised that this is a passively managed option. The fund simply mirrors the index, allocating money across the top 100 companies and the next 150 firms, without trying to beat the market through active stock selection. If the Indian economy and markets grow over time, investors automatically benefit from that expansion.

Moderate investors

For moderate or cautious investors, Gupta recommended balancing equity exposure with debt. One way is to split investments between equity funds and bonds. A simpler and more tax-efficient alternative, she noted, is a hybrid mutual fund, which typically holds around 60–65% in equities and the rest in debt instruments. Such funds offer diversification and are taxed like equity, unlike fixed deposits that attract full taxation.

She also addressed a common misconception among young investors that risk is either all or nothing. Investing, she said, does not mean choosing between ultra-safe deposits and highly volatile assets. Just as learning to swim begins in shallow water, investors can start with lower-risk options like equity savings or conservative hybrid funds and gradually increase exposure as confidence grows.

All about Nifty LargeMidcap 250 Index Fund

The Nifty LargeMidcap 250 Index Fund is a passive investment option that provides diversified exposure to India’s equity market by tracking the top 250 listed companies by market capitalisation. It is designed to balance stability and growth by combining established large-cap companies with higher-growth mid-cap stocks in a single portfolio.

The underlying index includes the top 100 large-cap stocks and the next 150 mid-cap stocks on the NSE. Unlike traditional market-cap-weighted indices, it follows a balanced structure, allocating an equal 50% weight to large caps and 50% to mid caps. This approach reduces concentration risk and ensures meaningful participation from mid-cap stocks while maintaining exposure to market leaders.

The index is reviewed and rebalanced quarterly to maintain the 50:50 allocation as market values shift. Funds tracking this index are classified as “very high risk” due to the volatility associated with mid-cap stocks and are therefore best suited for investors with a long-term horizon of at least five years.

Historically, the index has delivered competitive, risk-adjusted returns compared with pure large-cap indices. Several mutual fund houses in India offer direct plans of index funds or ETFs that track the Nifty LargeMidcap 250 Index. These include offerings from Zerodha Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Mirae Asset Mutual Fund and Edelweiss Mutual Fund. Expense ratios for these funds generally range between 0.23% and 0.30%, with assets under management varying across providers, reflecting growing investor interest in low-cost, diversified passive investment strategies.