There are so many categories of funds to invest in the equity mutual funds category. But the real problem comes while choosing the best fund to invest in out of the large, mid, small, and multicap fund categories to get consistent ROI for your future financial goals.

Best fund to invest out of large, mid-, and small-cap funds…

Large-cap fund definition means, as per SEBI rules, mutual funds should invest in the top 100 companies that are listed on the national stock exchange as per the highest valuations.

And midcap funds that will be investing in the top 101 to top 250 companies based on the valuation.

Finally, small-cap funds will be investing in the top 250 to top 500 companies based on the valuations of the stocks.

What will be the best fund to invest in for 3 years, 5 years, or 10 years? …

Most investors have this dilemma: which fund is best for them to invest in medium- to long-term out of large, mid-, and small-cap funds? …

In addition, the answer to this is choosing a fund that gives a consistent positive returns every year will be the best fund to invest in.

So, let’s see the yearly returns of these 3 fund categories for the long term.

For this analysis, I have taken more than 4701 data points from 1st April 2006 to 10th February 2025 for the indices Nifty large cap 100, nifty midcap 150, nifty small 250, and nifty 500.

In addition, I have calculated the yearly return on investments for all these indices.

And that analysis, you can see in the below image.

The table contains some red-coloured cells.

And the reason for it is they have the lowest ROI among all these 4 categories of funds.

and the higher ROI in a year is highlighted with the colour blue.

In addition, you can see there is no clear pattern or consistency in terms of positive or negative returns among the 4 categories of funds.

So, there is not enough proof of consistent returns every year among the large, mid, small, and multicap funds.

Finally, you may need to do much more analysis for selecting any of these category funds for the best category of best fund to invest in for the purposes of consistent ROI.

And I will try to explore in some other articles.

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