ICICI Prudential Large and Mid Cap Fund

ICICI Prudential Large and Mid Cap Fund delivers strong XIRR performance across horizons, with 3Y and 5Y XIRR of 19.25% and 19.6% respectively, ahead of category averages of 18.19% and 18.04%. Against the NIFTY 50, the fund has generated positive alpha across all periods, including 6.78% over 3Y and 7.12% over 5Y, while lagging benchmark CAGR of negatives in the 1Y period with -9.15% versus -10.92%. The fund has consistently captured less downside (83-85%) than upside (90-93%), evidencing disciplined risk management.

The fund exhibits moderate volatility with a low maximum drawdown of -0.37% lasting 66 days and a full recovery within 246 days, alongside a stable Calmar Ratio of roughly 0.41-0.50 across horizons. Beta of approximately 0.87-0.96 confirms lower sensitivity to market movements compared to NIFTY 50. However, investors should note the fund has experienced 9 drawdown events exceeding 10%, and the 2026 calendar year return of -9.92% reflects recent market pressure.

The top 10 holdings are well spread with the largest being Interglobe Aviation at 4.92% and SBI Cards at 4.87%, indicating no single-stock concentration risk. Sector exposure is diversified with the top 5 sectors — Industrial Products (11.0%), Finance (10.6%), Auto Components (9.3%), Capital Markets (5.7%), and Automobiles (5.6%) — collectively accounting for around 42% across 116 total holdings. This breadth supports the fund's broad large and mid cap mandate while maintaining diversification.

The fund consistently outpaces its category average SIP XIRR across nearly all measured horizons, with a 1Y XIRR of 11.87% versus 11.01% and 10Y XIRR of 18.23% versus 16.82%. Its alpha generation over 3Y, 5Y, and 7Y (6.78% to 7.78%) demonstrates robust stock selection ability relative to the NIFTY 50. The consistent 1-2 percentage point edge over category peers signals reliable positioning within the Large & Mid Cap segment.

This fund is appropriate for investors seeking diversified exposure across large and mid cap equities with strong long-term XIRR track records and relatively tame drawdowns. A minimum horizon of 5-7 years is recommended given equity market cyclicality, as shown by the 12Y rolling return mean of 16.77%. Investors should have moderate to high risk tolerance given mid cap exposure and periodic double-digit drawdowns, though SIP investors benefit from the consistent alpha over category averages.

• Consistent alpha generation versus NIFTY 50 across all measured horizons, ranging from 1.01% (1Y) to 7.78% (7Y)
• Favorable downside capture of 82-85% against upside capture of 90-93%, indicating strong defensive characteristics
• SIP XIRR above category averages across most horizons, including 19.6% over 5Y versus the category's 18.04%

• Recent performance has weakened with a -9.92% calendar year return in 2026 and a 1Y XIRR of 11.87%
• The fund has recorded 9 drawdown events exceeding 10%, and the long maximum drawdown duration of 66 days with 246-day recovery reflects recovery risk during volatile markets