In the past couple of quarters, domestic cues have significantly looked up with corporate earnings getting slowly back on track, GDP growth coming in at healthy levels for Q1FY26, inflation continuing to be low and GST 2.0 (along with income tax cuts) bringing back consumption.
The Indian market still continues to underperform to the tune of 15-20 percentage points growth gap year-to-date, compared to Asian and global counterparts.
Despite tariff tantrums, the outlook for the markets look reasonably optimistic. In such a situation, investors can benefit from a somewhat wider breadth of stocks.
The large/mid-cap category may suit investors with an above-average risk appetite with a long-term perspective.
Invesco India Large & Midcap Fund (earlier known as Invesco India Growth Opportunities) can be considered by investors via the SIP route if they have a 7-10-year horizon.
The fund has a consistent and healthy long-term record of beating its benchmark and delivering robust returns.
We are suggesting the SIP route largely due to lower valuation comfort in the mid-cap space and considering the fund’s relatively growth-oriented investing style.
Sturdy returns
Invesco India Large & Midcap has a track record of more than 18 years and has delivered above-average performance over this period.
In the last 4-5 years, the scheme’s performance has especially been robust. On a point-to-point basis, the fund has managed to outperform its benchmark Nifty Large Midcap 250 TRI by 1.5-2 percentage points over the long term. The scheme’s five-year return of 25.4 per cent is among the best in the category.
When 5-year rolling returns are considered from January 2013 to October 2025, it has managed to beat its benchmark almost 60 per cent of the time.
The fund has given more than 12 per cent returns over the aforementioned rolling period and timeframe 82 per cent of the time and in excess of 15 per cent for almost 61 per cent of the time.
Monthly SIP in the Invesco India Large & Midcap fund for a period of 10 years would have given a return (XIRR) of 20.1 per cent. A SIP in the benchmark would have yielded a lower 16.1 per cent.
The fund has an upside capture ratio of 104.24, indicating that its NAV rises a bit more than the benchmark during rallies. It has a downside capture ratio of 98.73, suggesting that the scheme’s NAV falls less than the benchmark during corrections. A score of 100 indicates that a fund performs in line with its benchmark. This inference is based on returns from October 2020 to October 2025. Other key risk measures such as Jensen’s alpha, Sortino ratio and Sharpe ratio are all healthy.
All the aforementioned data pertain to the direct plan of Invesco India Large & Midcap fund.
Deft portfolio churn
Though focused on its mandate of investing mostly across large/midcap stocks, the fund also takes exposure to small-caps in its portfolio.
From maintaining a roughly 50:40 ratio in favour of large/mid-caps a few years ago, Invesco India Large & Midcap Fund now has a more diversified portfolio across market caps. Its most recent portfolio (September 2025) has almost 36 per cent in large-caps, 43 per cent in mid-caps and nearly 18 per cent in small-caps. But exposure is generally to well-known and quality names even in the lower market cap segments.
In the post-Covid period, banks, IT, pharmaceuticals and FMCG were prominent segments held by the fund. But it pared exposures smartly to IT and FMCG in recent years as their underperformance was significant. The scheme was able to ride on the realty segment rally over much of 2023 and 2024 with significant allocations.
In recent months, it has upped stakes in retailing/e-commerce stocks (new-age), apart from healthcare services (mostly hospitals), which are having a fairly robust run with scope for further growth.
The portfolio is fairly diversified with exposure being much less than 5 per cent to individual stocks beyond the top few.
On the whole, the fund favours the growth style of investing with an element of momentum as well.
It remains fully invested across market cycles with cash positions rarely going beyond 1-2 per cent.
Invesco India Large & Midcap Fund is suited for investors with a reasonable risk appetite looking to save for long-term goals.
Published on November 1, 2025
