Union Large and Mid Cap Fund

Union Large and Mid Cap Fund has delivered strong alpha over the NIFTY 50 across all periods, with a 3Y lump-sum CAGR of 15.15% versus the benchmark's 7.75% and a 5Y CAGR of 13.8% versus 7.83%. On the primary SIP metric, its 3Y XIRR of 17.86% and 5Y XIRR of 16.74% are broadly in line with category averages of 17.73% and 17.26%, though the 1Y XIRR of 14.5% trails the category's 16.54%. Calendar year returns show strong up-years such as 39.83% in 2021 and 27.89% in 2023, alongside modest down-years like -2.97% in 2022.

The fund exhibits favorable downside behavior, with downside capture of 83.47% to 93.6% across periods versus upside capture of 91.54% to 106.71%, indicating it loses less than the benchmark in falling markets. Beta has declined from about 1.03 over 1Y to 0.90 over longer horizons, and the maximum drawdown of -0.36% with a 32-day duration reflects a currently calm risk profile, though 4 drawdown events exceeding 10% have occurred historically. Calmar ratios of roughly 0.54 to 0.61 across 1Y, 3Y, and 5Y suggest reasonable risk-adjusted returns.

The portfolio is well diversified across 74 holdings, with the top position, ICICI Bank, at only 5.19% of NAV and the top ten totaling under 24%. Banks is the largest sector at 16.0%, followed by Pharmaceuticals at 8.8% and Electrical Equipment at 6.7%, providing meaningful but not excessive financial-sector concentration. Holdings span banks, insurance, telecom, healthcare, autos, and industrials, supporting broad market representation appropriate for a large and mid cap mandate.

The fund sits close to category averages on SIP XIRR at 3Y (17.86% vs 17.73%) and 5Y (16.74% vs 17.26%), but lags at 1Y (14.5% vs 16.54%). Its consistent positive alpha versus the NIFTY 50, ranging from 12.27% over 1Y to 2.68% over 15Y, points to durable stock selection rather than a short-term spike. Long-horizon category comparisons at 7Y and beyond are not available for this fund's XIRR, so longer-term peer positioning relies on benchmark alpha instead.

This fund suits investors seeking diversified exposure to both large and mid cap equities with a moderate-to-high risk tolerance and a horizon of at least 5 years. Its below-benchmark downside capture makes it relatively resilient in corrections, but mid cap exposure means investors should be prepared for interim volatility. It works well as a core equity holding within a SIP-based portfolio.

• Consistent positive alpha versus NIFTY 50 across all measured periods, including 6.03% over 5Y and 7.37% over 3Y
• Strong downside protection with downside capture of 83.47% over long horizons and beta of 0.90
• Well-diversified 74-stock portfolio with no single holding above 5.19% of NAV

• 1Y SIP XIRR of 14.5% trails the category average of 16.54%, indicating recent relative underperformance
• Expense ratio of 1.08% is a meaningful cost drag for a direct plan in this category