The Edelweiss Large & Mid Cap Fund is adopting a highly active approach to portfolio management, with 88 distinct stock holdings and a significant active share of 57.91% as of July 31, 2026. This strategy is designed to capitalize on India's projected medium- to long-term economic expansion.
Strategic Sector Allocation
The fund's current strategy involves an overweight position in key growth-oriented sectors, including capital goods, automotive, and consumer durables. Conversely, it maintains an underweight stance on sectors such as metals, oil & gas, and Fast-Moving Consumer Goods (FMCG). This allocation reflects a bullish outlook on specific segments of the Indian economy.
The portfolio is structured with a blend of market capitalizations: approximately 50% in large-cap stocks, 36% in mid-caps, and 14% in small-caps. Large-cap holdings are intended to provide stability and earnings resilience, while mid-caps offer potential for higher growth. Select small-cap investments are used to tap into differentiated themes and opportunities that may be less represented in broader market indices.
Key Active Positions
Among its most significant active positions are companies like Ather Energy, Bharat Heavy Electricals (BHEL), Phoenix Mills, Ashok Leyland, Power Mech Projects, Solar Industries India, Federal Bank, L&T Finance, Billionbrains Garage Ventures, and Max Healthcare Institute. Ather Energy notably contributed the highest to the active share, followed by BHEL.
Investment Philosophy and Market Outlook
The fund's positioning is underpinned by a favorable view of Indian equities, citing positive trends in credit growth, auto volumes, property sales, and power demand. Additionally, healthy corporate balance sheets, declining leverage, and rising capacity utilization (reaching the mid-70% range) are seen as strong indicators supporting a constructive medium- to long-term outlook for the Indian market.
Edelweiss employs its proprietary FAIR investment framework, which stands for Forensics, Acceptable Price, Investment Style Agnostic, and Robustness. This framework emphasizes assessing accounting quality, board governance, and ownership background. It seeks reasonably priced businesses with strong medium-term earnings power, focusing on well-managed companies that offer scalable opportunities and superior return on capital employed.
Performance Track Record
This active strategy has delivered competitive long-term results. The fund's Direct Growth plan generated a Compound Annual Growth Rate (CAGR) of 14.61% over five years and 15.68% over ten years. These figures compare favorably against its benchmark, the Nifty Large Midcap 250 TRI, which returned 14.48% and 15.23% over the same periods, respectively. Since its inception, the Direct plan has achieved a 16.03% CAGR, outperforming the benchmark's 13.33%.