Mutual Funds – All you need to know
Quick Questions, Key Terms, and Scheme Rankings
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NS Wealth Research
Latest Large & Mid Cap Scheme Rankings
For the Period between Oct – Dec 2025
What is a Large & Mid Cap Mutual Fund?
As the name suggests, this is a specific kind of open-ended equity mutual fund that offers a portfolio solution with a minimum predefined allocation to large-cap and mid-cap shares traded on Indian exchanges. Best suited for investors who are not so aggressive in rebalancing their equity portfolio from time to time. As per SEBI’s guidelines, the scheme must maintain a minimum allocation of 35% of AUM each to large- and mid-cap stocks, with the remaining 30% allocated to small-cap and debt, based on the fund manager’s outlook.
NS Wealth Large & Mid Cap Scheme Rankings
NS Wealth’s Research team ranks all available schemes under the Large & Midcap category every quarter. The NS Wealth ranking method considers only those with at least 5 years of recorded performance. The ranking method aims to identify the top five highest-performing schemes in the category based on performance, risk-reward, and other metrics such as turnover ratio & expense ratio.
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Disclaimer
The Information in the ranking model is provided solely for general information and educational purposes and shall not constitute any advice or recommendation. Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not an indicator of future returns.
Other Rankings: Large Cap | Midcap | Multicap | Flexicap | Multi Asset Allocation | Aggressive Hybird | Conservative Hybrid | Arbitrage | ELSS | Gilt
NS Wealth Mutual Fund Scheme Rankings Methodology
NS Wealth’s Research team ranks mutual fund schemes under different SEBI-defined scheme categories every quarter. Only actively managed schemes are considered for ranking purposes.The various steps in the ranking process are:
Step 1
Shortlist the schemes in a particular category that qualify to participate. Shortlisting is done based on basic criteria to ensure quality & consistency. The key parameters based on shortlisting is done for a particular category are:
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– The age of the scheme, schemes with at least 5 years of track record.
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– Scheme’s AUM (Asset Under Management): The fund should have a minimum AUM of ₹1,000 crore.
Take an example of schemes under the Large Cap Category. There are 34 active schemes in India right now, but due to the two parameters above, not all of them will be considered by NS Wealth Research when ranking schemes under the Large Cap category.
Step 2
The second step of the ranking process is ranking individual shortlisted schemes relative to others based on three standard parameters:
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– Performance
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– Risk
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– Others
The process of arriving at a rank for a scheme against a specific parameter is dependent on the scheme’s rank against specific sub-parameters under a specific standard parameter.
The sub-parameters for the standard parameter “Performance.”
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– 1-Year Return
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– 3-Year Return
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– 5-Year Return
Similarly, for the standard parameter “Risk” are
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– Sharpe Ratio
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– Alpha
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– Sortino Ratio
The sub-parameters for the standard parameter “Others” are
Similarly, for the standard parameter “Risk” are
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– Expense Ratio
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– Turnover Ratio
Two things to remember:
Similarly, for the standard parameter “Risk” are
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– Any scheme’s rank against all sub-parameters under “Performance” & “Risk” is the highest if the value against the sub-parameter for that scheme is higher than that of others in the category. For example, the fund with the highest 1-year return will receive Rank 1 for that parameter.
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– The rank of the scheme is reversed for sub-parameters under “Others.” The higher the value against the sub-parameter, the worse the rank. For example, a scheme with the highest expense ratio will be ranked lower than a scheme with a lower expense ratio.
Step 3
The step of arriving at the final rank of a scheme in its category. After assigning ranks to all sub-parameters, a weighted-average rank is calculated for each fund considering the weights given to any standard parameter. The scheme with highest weighted-average rank it is category gets the top rank 1, followed by 2nd, 3rd,4th and 5th.
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