Mutual funds, July 11 -- Large & Mid Cap Funds are emerging as an attractive investment option as improving earnings, reasonable valuations and the recent market correction create favourable conditions for long-term investors, according to an internal study by Abakkus Mutual Fund. The study noted that while corporate earnings across large and mid-cap companies have continued to improve, stock prices have lagged, creating a valuation gap that could narrow as market fundamentals strengthen.

The report highlighted that several large-cap and mid-cap stocks have corrected significantly from their all-time highs, while the corresponding indices are trading below their historical average valuations. It said this combination of improving earning...