SBI LARGE and Mid Cap Fund

SBI Large & Mid Cap Fund has delivered strong SIP returns of 17.31% over 3Y and 18.27% over 5Y, outperforming the category average SIP XIRR of 18.19% at the 3Y marginally trailing but beating it at 1Y (12.86% vs 11.0%), 7Y (16.83% vs 17.07% marginally behind), 10Y (17.32% vs 16.82%) and 12Y (16.7% vs 16.37%). Against the NIFTY 50, the fund shows consistent alpha across all horizons, ranging from 4.18% over 10Y to 6.93% over 7Y, with fund CAGR of 14.13% over 12Y versus the benchmark's 9.07%. This long record of benchmark outperformance points to effective stock selection in the large and midcap space.

The fund exhibits a beta of roughly 0.84 to 0.92 versus NIFTY 50, indicating it moves somewhat less than the market, and its downside capture (78-85%) is consistently below its upside capture (84-92%), a favorable asymmetry. Risk-adjusted returns are decent but not exceptional, with Calmar ratios in the 0.44 to 0.53 range across horizons. The fund has experienced 10 drawdown events exceeding 10%, so investors should expect meaningful interim losses despite the strong long-run returns.

The portfolio is well diversified across 82 holdings, with the top position HDFC Bank at just 6.65% and the top ten holdings aggregating roughly 28-29% of NAV. Banks dominate at 16.0% of the portfolio, followed by Pharmaceuticals & Biotechnology at 12.9% and Auto Components at 8.9%, giving it a financials-heavy but reasonably balanced sector spread. Notable exposures include Adani Enterprises (2.46%), Tata Motors (2.22%), and a meaningful consumer durables allocation through Asian Paints and Berger Paints.

The fund sits around the category median over long horizons, matching or slightly exceeding category average SIP XIRR at 10Y (17.32% vs 16.82%) and 12Y (16.7% vs 16.37%) while lagging modestly at 3Y (17.31% vs 18.19%) and 7Y (16.83% vs 17.07%). Calendar year results show strong consistency in good markets, with double-digit gains in 2014, 2017, 2020, 2021, 2023 and 2024, though 2022 (6.93%) and 2025 (10.46%) were more modest. Its 0.74% expense ratio is reasonable for the category, though a few peers deliver slightly better 3Y SIP returns.

This fund suits investors seeking broad large and midcap exposure with an experienced AMC, comfortable tolerating drawdowns of 10% or more along the way. A time horizon of at least 5-7 years is appropriate to allow the demonstrated long-term alpha to compound and to smooth out mid-cap volatility. It works well as a core equity holding in a diversified portfolio, ideally accessed through SIPs given the mid-cap component's inherent swings.

• Consistent positive alpha versus NIFTY 50 across every measured horizon from 1Y to 15Y, ranging from 4.18% to 6.93%
• Favorable capture asymmetry, with downside capture (e.g., 78.37% over 5Y) consistently below upside capture, cushioning losses in falling markets
• Broad diversification across 82 holdings with no single stock above 6.65% of NAV, limiting single-stock concentration risk

• The current 1Y SIP XIRR of 12.86% trails the 3Y and 5Y figures, and the fund recorded a -7.45% return in calendar 2026, reflecting near-term mid-cap weakness
• Returns over 3Y and 7Y slightly lag the category average SIP XIRR (17.31% vs 18.19% and 16.83% vs 17.07%), suggesting some peers have been more effective recently