Best large and mid-cap mutual funds October 2026: Consistent performers across YTD, 3- and 5-year returns—and their beta

Large- and mid-cap mutual funds are equity schemes that are required to invest at least 35% of their assets each in large-cap and mid-cap stocks. According to AMFI‘s August 2026 data, there are 36 schemes in this category.

While returns are an important factor for mutual fund investors, comparing them with the risk taken to generate those returns can provide a more complete picture. Here’s what you need to know about the YTD leaders as of October 2026, along with their 3- and 5-year performance.

Which large & mid-cap funds are leading in 2026 returns?

Motilal Oswal Large & Midcap Fund leads the category in year-to-date (YTD) returns at 9.1%, followed by HSBC Large & Midcap Fund at 6.77% and Quant Large & Midcap Fund at 5.79%.

Invesco Large & Midcap Fund and Axis Large & Midcap Fund follow with returns of 5.21% and 1.65%, respectively.

Invesco Large & Midcap Fund has delivered the highest three-year CAGR return among the funds listed, at 21.41%, closely followed by Motilal Oswal Large & Midcap Fund at 21.21%.

Motilal Oswal Large & Midcap Fund leads the five-year CAGR chart at 18.26%. Invesco Large & Midcap Fund follows at 15.87%, while Bandhan Large & Midcap Fund delivered 15.57%.

Which funds feature among the leaders across all three periods?

Four large and mid-cap funds consistently feature among the top five performers across the YTD, three-year and five-year periods.

• Motilal Oswal Large & Midcap Fund
• Invesco Large & Midcap Fund
• HSBC Large & Midcap Fund
• Quant Large & Midcap Fund

This consistency is notable because a fund that ranks highly over different periods may indicate that its performance has not been limited to a single market phase. However, investors should not assess these funds on returns alone. The amount of volatility taken to generate those returns also matters.

What does beta tell mutual fund investors?

Beta measures a mutual fund’s volatility and sensitivity to movements in its benchmark. A beta of 1 means the fund tends to move broadly in line with the benchmark. A beta above 1 indicates greater sensitivity, while a beta below 1 indicates lower volatility relative to the benchmark.

For example, a beta of 1.2 suggests that, for a 10% movement in the benchmark, the fund could potentially move by around 12% in the same direction, although actual returns can differ significantly. Similarly, a beta of 0.8 indicates lower sensitivity.

A lower beta can therefore indicate a relatively more defensive portfolio, while a higher beta indicates that investors are taking greater market-related risk.

How is the beta of these consistent performers?

The four funds that feature among all three return periods also have beta above 1. Motilal has the highest beta at 1.16, compared with the category average of 1.03. Quant has a beta of 1.14, while Invesco has a beta of 1.12. HSBC has the lowest beta among these four at 1.05.

The Nifty LargeMidcap 250 benchmark has declined 6.23% in 2026 so far, while its three-year and five-year returns stand at 10.94% and 10.48%, respectively. The funds listed above have clearly outperformed the benchmark.

The four funds that consistently feature among the return leaders also have beta levels above 1, showing that their higher returns have come with greater sensitivity to market movements. For investors with a conservative risk profile, a beta of less than 1 may be more suitable, but these active funds have outperformed the benchmark with slightly higher risk.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.