The Wealth Company Large and Mid Cap Fund

The fund has underperformed the NIFTY 50 across all measured periods, with a 1Y CAGR of -6.96% versus the benchmark's -4.61%, producing negative alpha of -4.18% over 1Y that narrows to -1.29% over 15Y. The fund's lump-sum CAGRs remain negative even over 15 years (-0.48%), while the category average SIP XIRR stands at 11.04% over 1Y and 18.21% over 3Y, indicating meaningful underperformance versus peers on a like-for-like SIP basis. Calendar year 2026 shows a -6.56% return, consistent with the weak 1Y trend.

The fund exhibits a beta of 0.84 against the NIFTY 50, meaning it moves less than the market in both directions, yet its downside capture of 93.23% exceeds its upside capture of 80.14% — an unfavorable asymmetry that explains the persistent negative alpha. Maximum drawdown is modest at -0.13% with a 56-day duration, though one drawdown event exceeding 10% has occurred historically. The combination of lower upside participation and nearly full downside participation results in poor risk-adjusted returns relative to the benchmark.

The portfolio holds 50 stocks with a well-diversified top 10, where the largest position is ICICI Bank at just 3.56% of NAV, indicating no single-stock concentration risk. Sector allocation is led by Capital Markets at 10.4%, followed by Pharmaceuticals & Biotechnology at 8.3% and Electrical Equipment at 6.6%, with financials (Capital Markets, Banks, Finance) collectively forming a sizable exposure. Holdings span banks, capital markets, automobiles, pharma, and industrials, providing reasonable breadth across the large and mid cap universe.

The fund trails the category significantly, with negative returns across all periods while category average SIP XIRRs range from 11.04% (1Y) to 18.21% (3Y). The consistent negative alpha across 1Y through 15Y windows (-4.18% to -1.29%) suggests structural underperformance rather than a short-term anomaly. The unfavorable upside/downside capture ratio further positions this fund below peers on both return generation and downside management.

This fund is suitable only for investors with high risk tolerance and a long time horizon of 7-10+ years, given its negative returns across all measured periods and its large & mid cap mandate. However, given persistent underperformance versus both the benchmark and category peers, investors should carefully evaluate whether the fund's strategy justifies the tracking deficit before committing. Most retail investors would be better served by comparing this fund against better-performing large & mid cap peers before investing.

• Well-diversified 50-stock portfolio with the largest holding at only 3.56% of NAV, minimizing single-stock risk
• Low beta of 0.84 provides lower volatility than the NIFTY 50 benchmark
• Broad sector diversification across Capital Markets (10.4%), Pharma (8.3%), and Banks (5.6%) with exposure to multiple industries

• Persistent negative alpha across all time periods (-4.18% over 1Y to -1.29% over 15Y), indicating consistent underperformance versus the NIFTY 50
• Unfavorable capture asymmetry — upside capture of 80.14% versus downside capture of 93.23% — meaning the fund participates less in rallies but almost fully in declines