SBI Large and Midcap Fund: Nearly 60 times returns in 30 years

SBI Large & Midcap Fund has completed 30 years. If you had invested Rs 1 lakh in SBI Large and Midcap Fund (erstwhile SBI Magnum Multiplier Fund) at the time of its inception in February 1993, your investment would have grown to Rs 58 lakhs (as on 27^th March 2023).

Rs 10,000 monthly SIP in the scheme over the last 20 years would have grown to corpus of nearly Rs 89 lakhs (as on 27^th March 2023), with a cumulative investment of Rs 12 lakhs. The credentials of SBI Large and Midcap fund as a wealth creator is quite strong.

We in Advisorkhoj, assign a lot of importance to performance consistency in scheme selection by investors or distributors / advisors. We have developed a tool to identify the most consistent equity schemes in a mutual fund category based on 3 year rolling returns of the scheme and its rolling returns performance relative to its peers -> Consistent Performing Mutual Funds. If you click on this tool link and select the large and midcap category, you will see that SBI Large and Midcap Fund is one of the most consistent performers in its category.

What are Large and Midcap Funds

According to SEBI’s directive large and midcap schemes must mandatorily invest at least 35% of its assets in large cap stocks and at least 35% of its assets in midcap stocks. SEBI classifies the top 100 stocks by market capitalization as large cap stocks and the next 100 stocks by market capitalization as midcap stocks. SEBI’s mandate for large and midcap schemes is quite flexible allowing considerable freedom to fund managers in terms of market cap mix according to their outlook.

SBI Large and Midcap Fund - Overview

SBI Large and Midcap Fund (erstwhile SBI Magnum Multiplier Fund) was launched in February 1993. The scheme name was changed in 2018. The scheme has Rs 9,441 crores of assets under management (AUM) as on 28^th February 2023. The expense ratio of the scheme is just 1.79%. Saurabh Pant is the fund manager of this scheme since 2016. The scheme benchmark is Nifty Large and Midcap 250 TRI. The scheme has given 14.44% CAGR returns since inception (as on 27^th March 2023). The chart below shows the NAV movement of the scheme versus Nifty 50 TRI over the last 10 years.

Source: Advisorkhoj Research

Performance consistency relative to peers – Quartile Ranking

SBI Large & Midcap Fund consistently delivered superior performance relative to its peers. Our Quartile Ranking tool shows the annual quartile ranking of schemes (in a category) for the last 10 years and the current year (YTD). For the benefit of new investors, quartile ranking is a method of ranking the performance (returns) of schemes in 4 performance categories (Top Quartile – Top 25% performers, Upper Middle Quartile – Next 25% performers, Lower Middle Quartile – Next 25% performers after Upper Middle Quartile, Bottom Quartile – Bottom 25% performers).

Using this tool, you can evaluate how your scheme performed versus its peers across different market conditions. The preponderance of green boxes in the chart below shows that SBI Large & Midcap Fund has consistently performed well relative to its peers across different market conditions. In the last 10 years, SBI Large & Midcap Fund has been in Top 2 quartiles 7 times (out of 10).

Source: Advisorkhoj Research

Rolling Returns

We have stated a number of times in our blog that rolling returns are the best measures of mutual fund performance because they are not biased by market conditions prevailing during a particular period. The chart below shows the 3 year rolling returns of SBI Large and Midcap Fund versus the scheme category over the last 10 years. You can see that the scheme consistently outperformed the large and midcap funds category over 3 year rolling returns period (investment tenures) across different market conditions over the last 10 years.

Source: Advisorkhoj Rolling Returns

The average and median 3 year rolling returns of SBI Large and Midcap Fund over the last 10 years were 14.4% and 14.6% respectively. The maximum 3 year rolling return of the scheme was 35% and the minimum 3-year return was -3%. The scheme gave 10%+ annualized 3 year rolling returns nearly 80% of the times over the last 10 years.

Lump Sum and SIP Returns

The chart below shows the growth of Rs 10,000 lump sum investment in the scheme over the last 10 years. You can see that investment in the SBI Large and Midcap Fund would have multiplied nearly 4.5 times in the last 10 years (as on 27^th March 2023)

Source: Advisorkhoj Research

The chart below shows the growth of Rs 10,000 monthly SIP in the scheme over the last 10 years. Your investment would have grown to more than Rs 25 lakhs (as on 27^th March 2023) with a cumulative investment of just Rs 12 lakhs. The SIP XIRR in the last 5 years was around 14.42%.

Source: Advisorkhoj Research

Who should invest in SBI Large & Midcap Fund?

• Investors looking for capital appreciation or wealth creation over long investment horizon.


• You should have high risk appetite for this scheme.


• The scheme may be suitable for long term financial goals like retirement planning, children’s higher education, children’s marriage, wealth creation etc.


• You should have minimum 5 years investment tenure for this scheme.


• You can invest in this scheme either in lump sum or SIP depending on your investment needs.


• If you have lump sum funds but are worried about volatility in the short term, then you can invest your funds in SBI Liquid Fund and then transfer it to SBI Large and Midcap Fund through Systematic Transfer Plan (STP) over the 3 – 6 months.

Investors should consult with their financial advisors if SBI Large & Midcap Fund is suitable for their investment needs.