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Best Large Cap Mutual Funds 2024

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Large cap funds invest in the top 100 companies according to market capitalization (usually companies with more than 20000 crore market cap).
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Investment in Equity & Equity-related instruments of Large-Cap companies is a minimum 80% of total assets. These companies have many years of financial track record with consistent performance across market cycles. Though large cap funds may not give very high returns, returns from such funds are less volatile than small and mid-cap funds. Thus, Large Cap Mutual Funds are often touted as a good option for a first-time investors, as well as investors with lower risk appetite. who want to earn returns without being exposed to severe market fluctuations.
Decizen Rating (Understand the Method):- P: Performance, Q: Quality, UP: Upside Potential
96.12
37,904
15.3
04 Apr' 08
21.75
15.99
14.68
12.49
18.23
16.70
15.94
16.44
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94.48
49,838
15.3
23 May' 08
33.54
22.34
18.15
13.03
16.76
14.90
13.87
14.22
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53.00
32,675
12.5
05 Jan' 10
22.16
12.02
13.87
10.99
14.88
14.65
13.56
13.45
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53.26
11,823
13.2
20 Aug' 10
25.95
16.47
17.13
12.33
15.54
14.34
13.08
13.23
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73.84
718
14.4
20 May' 09
29.13
18.51
16.39
11.89
15.65
14.25
12.99
12.77
Unlock
78.30
43,273
12
20 Jan' 06
23.27
17.75
16.34
11.96
16.98
15.60
14.01
13.28
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76.84
21,454
13.1
08 Aug' 07
36.27
25.8
17.53
12.96
18.70
15.50
13.77
13.50
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193.84
1,743
16.5
23 Sep' 04
30.58
18.57
17.53
11.64
16.15
14.84
13.72
12.97
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449.42
26,046
19.4
23 Sep' 02
27.19
18.68
15.58
11.24
16.06
14.59
13.34
14.24
Unlock
449.42
26,046
19.4
30 Aug' 02
27.19
18.68
15.58
11.24
16.07
14.59
13.34
14.24
Unlock
487.31
7,447
19.2
04 Feb' 03
25.26
17.75
16.75
11.56
15.78
14.07
12.58
12.40
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58.71
925
13
21 Aug' 09
33.81
19.25
15.86
11.56
15.31
13.76
12.29
12.08
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238.50
12,082
13.4
03 Aug' 05
23.18
16.12
15.11
10.67
15.29
13.69
12.39
12.14
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1016.39
30,980
19.2
03 Sep' 96
33.91
23.42
16.38
11.94
16.68
13.67
12.37
13.37
Unlock
21.57
294
11.9
11 May' 17
27.47
17.55
15.41
N/A
11.85
13.21
10.96
N/A
Unlock
440.70
1,888
19.4
07 May' 98
28.96
20.07
15.97
11.01
14.66
13.03
11.73
12.14
Unlock
301.82
537
17.5
30 Jan' 03
20.53
13.86
13.27
9.6
14.30
12.85
11.42
11.52
Unlock
877.83
7,465
19.3
01 Dec' 93
24.52
16.26
14.07
10.06
14.24
12.51
11.39
12.27
Unlock
422.29
1,706
19.3
10 Dec' 02
30.82
16.68
15.7
11.16
14.46
12.49
11.07
10.73
Unlock
48.37
1,368
10.4
31 Mar' 98
20.46
14.01
13.85
9.33
13.68
12.45
11.14
10.63
Unlock
66.06
1,330
11.2
09 Jun' 06
32.92
17.59
15.58
10.66
13.47
12.05
10.83
10.07
Unlock
144.09
81
9.7
01 Apr' 95
36.86
20.61
16.53
10.32
13.84
11.78
10.02
8.35
Unlock
38.34
114
11.8
10 Feb' 12
28.25
16.86
13.34
10.51
12.87
11.52
10.80
11.37
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388.78
3,357
19.1
10 Mar' 03
28.83
16.17
14.65
9.38
13.41
11.46
10.56
11.67
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141.99
42
10.7
28 Feb' 95
32.18
17.29
13.7
8.76
12.39
10.23
8.90
8.32
Unlock
19.26
3,315
21.3
08 Oct' 20
25.12
17.96
N/A
N/A
13.98
17.40
N/A
N/A
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20.07
353
15.1
15 Mar' 19
26.28
17.59
N/A
N/A
16.03
17.22
N/A
N/A
Unlock
16.17
239
16.3
24 Dec' 20
30.72
15.73
N/A
N/A
9.18
14.85
N/A
N/A
Unlock
12.35
391
18.2
01 Dec' 22
28.88
N/A
N/A
N/A
29.24
N/A
N/A
N/A
Unlock
14.82
122
15.9
29 Jun' 21
38.8
N/A
N/A
N/A
8.95
N/A
N/A
N/A
Unlock
14.40
535
26
10 Aug' 22
41.08
N/A
N/A
N/A
23.20
N/A
N/A
N/A
Unlock
10.27
0
62.9
06 Feb' 24
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Unlock


FAQ's
Large cap mutual funds invest in the top 100 companies based on market capitalization. Most often, large cap companies are market leaders with a well-established clientele/consumer base for its products and services. This allows them to handle economic slowdown better as compared to mid and smaller sized companies. This is also highlighted by their tendency to experience lower volatility. This reduces the quantum of risk with respect to large cap funds.

Extensive financial track records and a published history of their performance across the market and economic cycles offers investors better insight into the strength of the portfolio.

Large cap mutual funds are perfect to form the core allocation of every investor’s portfolio and should be invested with the intent to make long-term capital gains. While the risk quotient may not be high, investors will have to wait for a gradual upswing in the market conditions to reap returns. Large cap mutual funds are not a choice for investors looking for quick returns.

The real growth in an investor’s wealth comes from staying invested for the long term, usually more than 5-7 years. However, investing lump sum when the markets are high (usually, it means the large cap stocks are also high) exposes investors to a likely correction and drop in their portfolio value. If an investor requires money during corrections and ends up selling, he could experience a real loss and certainly poor returns even though he has invested in a large cap fund.

It is important that investors are able to manage their fear and stay invested. Maintaining a diversified portfolio, across asset classes helps in staying invested in the market.

Portfolio Quality

When you invest in a mutual fund, what you are really buying is the stock portfolio of that particular fund. It’s then common sense that the first thing you check is its portfolio quality. And how it compares with other large cap funds in the market.

What is the proportion of risky companies? What sector is the fund focussing on? Since safety is of primary importance when investing in a large cap fund, you’re better off staying with the best quality funds.

Rolling Return

A quick google search for the best large cap funds to invest in" will lead you to many sites recommending top-performing funds based on their performance in the past 3, 5 and 10 years. However, this method could sometimes be inadequate and misleading.

A better way to assess a fund’s return performance is to look at rolling returns across different time periods, say 3 or 5 years. This removes the starting/ending point bias present in point to point past performance used across the industry.

Consistent Performer

Past performance is no guarantee for the future. Thus, choosing a mere top past performer is unlikely to be a winning strategy.

However, a manager who has outperformed his benchmark across market cycles is more likely to do so in the future too. Avoiding funds with poor return consistency will take the investor a step closer to building a winning portfolio.

Low cost

Every fund charges you with a fee to manage your funds, more commonly known as the expense ratio So among the funds that fulfil your other criteria, choose the fund with the lowest expense ratio.

Apart from this, there are other hidden costs in an MF such as brokerage and impact cost. These can be reduced by choosing a fund that churns the portfolio less frequently. Because, ultimately, these costs are to be borne by the investor, and they account for a compromise in returns.

Mirae Asset Large Cap Fund

The Mirae Asset Large Cap Fund predominantly invests in large cap companies (within the top 100 according to market capitalisation). The Fund displays a certain flexibility when it comes to investments, showing interest across various sectors of the industry, focusing specifically on high quality businesses but also ensuring the right price over the holding period.

For more details click on MoneyWorks4me’s assessment of Mirae Asset Large Cap Fund

Axis Bluechip Fund

The scheme invest largely in large cap companies. The fund has done well since current Fund manager, Shreyash Devalkar, joined the fund house in November 2016. The fund manager’s focus has been on quality and growth companies i.e. selecting companies with high return on equity (RoE), revenue and margin growth, and market penetration.

For more details click on MoneyWorks4me’s assessment of the Axis Bluechip Fund

Nippon India Large Cap Fund

This fund is ideal for investors looking at a holding period of three to four years, after which the fund stands to yield high returns. But investors must also be prepared for adversity as this portfolio is prone to moderate risks. Apart from investing in equity and equity-related instruments of large capital companies, this fund also seeks to generate returns by investing in securities, InvITs, and REITs.

For more details click on MoneyWorks4me’s assessment of Nippon India Large Cap Fund

SBI Bluechip Fund

A suitable fund for those investors that aren't willing to take too much of a risk, while also expecting a reasonable rate of returns. This is an ideal fund to invest in with medium-term goals focusing on wealth creation or planning a comfortable retirement.

For more details click on MoneyWorks4me’s assessment of the SBI Bluechip Fund

Invesco India Large Cap Fund

Unlike most large cap funds, this equity fund is diversified across market capitalizations. The fund’s managers take a contrarian approach and look for undervalued companies for investment. Thus, the fund is usually faced with short term underperformance but adds significant value over a market cycle in the long term.

For more details click on MoneyWorks4me’s assessment of the Invesco India Large Cap Fund

You need to avoid the common errors that lead to losing capital in markets, by answering few important questions:
  1. Do I have a long enough time horizon required for equity investing?
  2. Does the Mutual Fund I choose suit my risk profile?
  3. Do I understand what I am buying or am I blindly investing in a Fund on the insistence of my friends, acquaintances or Mutual Fund Distributors (who earn commissions on what they sell to me)?
  4. Am I over-exposed to one Fund or one type of Funds? Do I know if I have a good combination of Funds?
Ask questions and learn more about investing in Mutual Funds because ignorance is the biggest risk. And, you probably have a few decades of investing to do, so investing your time in learning about investing is the best investment you can make!

While it’s true that Mutual Funds in India can be a good investment option, you shouldn’t forget that they have an inherent market risk associated with them. Risks are inevitable, because we are dealing with estimated values in the future, and the future remains uncertain. Understanding risks will help you take action to control and manage them. And, then your expectations can be adjusted to do justice to the risks you have taken.

Every fund is assessed on the following:
  1. Consistent Outperformers : Track record of having generated returns above a benchmark on a 3-year rolling basis. Consistent performers are Green, followed by Orange. Red have an inconsistent track record on outperforming the index.
  2. The average 3-year rolling returns number appears in the first button.
  3. Quality of Portfolio is assessed based on the quality of each stock held. Predominantly high quality stocks get a Green second button, followed by Orange and Red (large amount of risky stocks).
  4. Upside Potential: Every fund is assessed on what returns it could deliver in the next 5 years based on it.
Select the fund that is Green on Performance which shows it has consistently outperformed the index. Select one with a high average 3-year rolling returns - the number in the first button. And select one with a Green rating on Quality-the second button.
Use the Funds Screener and select the category. It shows the funds with Green on Performance and Quality right on the top. The ones with the higher average 3-year rolling returns are ranked the highest. Funds with less than 5 years returns history are colored Grey on Performance. Since the track record is not for an adequately long period they feature lower in the list.
Build a well-diversified portfolio with funds that assures you of a stable growth through market and economic cycles and funds that enhance your portfolio returns over the long run.
  1. Core Funds: Choose from Large cap, Large and Mid cap and Flexicap funds.
  2. Booster Funds
    1. Choose from Mid and Small cap funds.
    2. Select a Sector or Thematic Fund that is likely to outperform in the long term.
Use the Fund Portfolio Analyzer, Sher-ya-Billi to check if your portfolio will deliver healthy returns or disappoint you. Go to Fund Portfolio Analyzer. You can also upload details of your funds in the Portfolio Manager and see the report on this page.
When adding a new fund check how different is the fund compared to your portfolio by using the link in the Right allocation box on the Fund Decision Maker.
Most investors have more, many more funds that they should-over diversified. This tends to reduce returns. Many investors have more of the same i.e. they have funds that have very similar portfolios and hence the fund portfolio is not well-diversified. Either there are too many large cap dominated funds or far too many mid and small cap funds. What you require is a good, balanced mix. Finally investors don't know when to exit a fund and end up carrying it even though the future upside potential is very low.
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