Best Large Cap Funds in India
Large cap mutual funds are the type of equity funds, a category of mutual funds that usually invest in well-established, financially stable companies with a large market capitalisation. These funds are known for their focus on investing in blue chip companies. For many, top large cap mutual funds can be a good choice for investors seeking relatively lower risk and long-term growth prospects in the world of mutual fund investments. In this article we will discuss the large cap mutual funds meaning, their features, benefits, risks and more.
Top 10 Large Cap Mutual Funds in India
| Largecap Fund Name | Fund Size (Rs. in Cr) | Expense Ratio (%) | CAGR 5Y (%) |
|---|---|---|---|
| Nippon India Large Cap Fund | 35,313.48 | 0.66 | 20.37 |
| ICICI Pru Bluechip Fund | 63,938.03 | 0.86 | 19.18 |
| Invesco India Largecap Fund | 1,316.64 | 0.75 | 19.18 |
| Canara Rob Bluechip Equity Fund | 14,823.66 | 0.51 | 18.99 |
| JM Large Cap Fund | 495.06 | 0.66 | 18.91 |
| Baroda BNP Paribas Large Cap Fund | 2,402.85 | 0.82 | 18.65 |
| Bandhan Large Cap Fund | 1,759.53 | 0.92 | 18.30 |
| Edelweiss Large Cap Fund | 1,100.22 | 0.67 | 18.28 |
| Kotak Bluechip Fund | 9,497.92 | 0.6 | 18.13 |
| HDFC Top 100 Fund | 36,467.34 | 0.99 | 17.61 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Note: The data on the top 10 large cap mutual funds in India list is from 30th December 2024, and the data is derived from Tickertape Mutual Fund Screener, using the following parameters:
- Category: Large Cap Fund
- Plan: Growth
- 5-yr CAGR: Sorted from highest to lowest
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Overview of the Best Large Cap Funds in India
Nippon India Large Cap Fund
Nippon India Large Cap Fund is an open-ended equity mutual fund offered by Nippon Life India Asset Management Limited. The fund was launched on 8th August 2007 and is managed by experienced fund managers Sailesh Raj Bhan and Kinjal Desai. As of 30th December 2024, the fund had assets under management of Rs. 35,313.48 cr. and an expense ratio of 0.66%. The company had a 3-yr compounded annual growth rate (CAGR) of 22.20%, and a 5-yr CAGR of 20.37%.
ICICI Pru Bluechip Fund
ICICI Pru Bluechip Fund is a large-cap equity mutual fund offered by ICICI Prudential Asset Management Company, one of India’s leading fund houses. The fund was launched on 23rd May 23 2008 and is managed by the fund manager, Sankaran Naren, with support from Priyanka Khandelwal. As of 30th December 2024, the fund had an AUM of Rs. 63,938.03 cr. and an expense ratio of 0.86%. The company had a 3-yr CAGR of 18.31% and a 5-yr CAGR of 19.18%.
Invesco India Largecap Fund
Invesco India Largecap Fund is an open-ended equity mutual fund managed by Invesco Asset Management (India) Pvt. Ltd. The fund was launched on 21st August 2009 and is managed by Taher Badshah and Abhishek Bisen. As of 30th December 2024, the fund had an AUM of Rs. 1,316.64 cr. and an expense ratio of 0.75%. The company had a 3-yr CAGR of 16.62% and a 5-yr CAGR of 19.18%.
Canara Rob Bluechip Equity Fund
Canara Robeco Bluechip Equity Fund is an open-ended equity mutual fund offered by Canara Robeco Asset Management Company. The fund was launched on 20th August 2010 and is managed by Avnish Jain and Pradeep Gokhale. As of 30th December 2024, the fund had an AUM of Rs. 14,823.66 cr. and an expense ratio of 0.51%. The company had a 3-yr CAGR of 15.51% and a 5-yr CAGR of 18.99%.
JM Large Cap Fund
JM Large Cap Fund is an open-ended equity mutual fund offered by JM Financial Mutual Fund. The fund is managed by experienced fund managers Satish Ramanathan and Jasmine Jethmalani. As of 30th December 2024, the fund had an AUM of Rs. 495.06 cr. and an expense ratio of 0.66%. The company had a 3-yr CAGR of 17.69% and a 5-yr CAGR of 18.91%.
Baroda BNP Paribas Large Cap Fund
Baroda BNP Paribas Large Cap Fund is an open-ended equity mutual fund managed by Baroda BNP Paribas Asset Management India, a joint venture between Bank of Baroda and BNP Paribas Asset Management. The fund was launched on 27th August 2004 and is managed by Sanjay Chawla and Ravi Gopalakrishnan. As of 30th December 2024, the fund had an AUM of Rs. 2,402.85 cr. and an expense ratio of 0.82%. The company had a 3-yr CAGR of 18.12% and a 5-yr CAGR of 18.65%.
Bandhan Large Cap Fund
Bandhan Large Cap Fund is an open-ended equity mutual fund offered by Bandhan Asset Management Company, previously known as IDFC AMC. The fund was launched on 9th October 2006 and is managed by experienced fund managers Sumit Agrawal and Ankit Agarwal. As of 30th December 2024, the fund had an AUM of Rs. 1,759.53 cr. and an expense ratio of 0.92%. The company had a 3-yr CAGR of 15.88% and a 5-yr CAGR of 18.30%.
Edelweiss Large Cap Fund
Edelweiss Large Cap Fund is an open-ended equity mutual fund scheme offered by Edelweiss Asset Management Limited. Bhavesh Jain and Karan Desai currently manage the fund. As of 30th December 2024, the fund had an AUM of Rs. 1,100.22 cr. and an expense ratio of 0.67%. The company had a 3-yr CAGR of 16.56% and a 5-yr CAGR of 18.28%.
Kotak Bluechip Fund
Kotak Bluechip Fund is an open-ended equity mutual fund offered by Kotak Mahindra Asset Management Company. The fund was launched on 29th December 1998 and is currently managed by Harish Krishnan. As of 30th December 2024, the fund had an AUM of Rs. 9,497.92 cr. and an expense ratio of 0.60%. The company had a 3-yr CAGR of 15.62% and a 5-yr CAGR of 18.13%.
What are Large Cap Mutual Funds?
Large Cap Mutual Fund is like a big basket where you can put your money for investment. But this basket is special because it holds shares of big, well-known companies. These companies are like the giants of the stock market.
Large cap equity funds make up the NIFTY 100 index, comprising the top 100 companies that excel in their respective industries and are often seen as less prone to risk. Additionally, large-cap stocks are considered the most reliable because they originate from well-established and renowned corporations.
Features of the Best Mutual Fund in Large Cap
Here are the features of the top mutual funds large cap.
- Lower Risk: Large cap mutual funds can be generally considered to be less risky than smaller companies, as they have a larger market presence and are more diversified.
- Steady Returns: Large-cap companies tend to grow at a slower pace than smaller companies, but they can generate more consistent earnings.
- Higher Liquidity: Best large cap MFs can be more liquid than smaller stocks, meaning that they can be more easily bought and sold.
- Portfolio Diversification: Large cap mutual funds typically invest in a diversified portfolio of stocks, which can help to reduce risk.
- Suitability for Long-term Investment: Best large cap mutual funds 2024 can be best suited for long-term investors, as they tend to generate steadier returns over the long term.
How Do Large Cap Mutual Funds Work?
Large Cap funds primarily invest in India’s top 100 companies, determined by their market capitalisation. These companies include well-known brands like Reliance, Britannia, ITC, HUL, and others, and they enjoy a strong reputation in the market. Regulatory requirements dictate that large-cap funds allocate a minimum of 80% of their assets to these top 100 companies.
Opting for Large Cap funds provides the assurance that your investments are directed towards companies with a proven history of consistent performance over the medium to long term. As a result, large-cap funds tend to exhibit lower volatility compared to mid-cap and small-cap funds.
Factors to Consider Before Investing in Large Cap MFs
Before investing in large-cap mutual funds, it is important to consider the following factors:
- Your Investment Goals & Risk Appetite: Large-cap mutual funds are generally considered to be lower-risk investments than other types of equity funds, but they also tend to generate lower returns.
- Fund’s Performance History: It is important to look at the fund’s performance history over the long term (at least 5 years) to assess its consistency. You can also compare the fund’s performance to its benchmark index and other large-cap mutual funds.
- Fund’s Expense Ratio: The expense ratio is the annual fee that is charged to manage the fund. Lower expense ratios may lead to higher returns for investors.
- Fund’s Investment Strategy: Large-cap mutual funds can have different investment strategies. Some funds may focus on investing in value stocks, while others may focus on investing in growth stocks.
- Fund’s Track Record of the Fund Manager: The fund manager plays an important role in the performance of a mutual fund. It is important to look at the fund manager’s track record and experience to assess their ability to generate returns.
Who Should Invest in Large Cap Funds?
Large-cap mutual funds are generally suitable for the following types of investors:
- Long-term investors: Large-cap mutual funds are generally best suited for long-term investors (at least 5 years). This is because the stock market can be volatile in the short term, but large-cap companies tend to generate steadier returns over the long term.
- Risk-averse investors: Large-cap mutual funds are generally considered to be lower-risk investments than other types of equity funds, such as mid-cap and small-cap funds.
- Investors who need to access their money quickly: Large-cap stocks are more liquid than smaller stocks, meaning that they can be more easily bought and sold.
- Investors who are looking to build a core portfolio: Large-cap mutual funds can be a good way to build a core portfolio of equity investments. A core portfolio is a portfolio of low-cost, diversified investments that can help investors to achieve their long-term financial goals.
How to Select Good Large Cap Mutual Funds to Invest in?
When looking to invest in the best large-cap mutual funds, there are several factors you might consider when making an informed decision. Evaluating these aspects may help you align your investment with your financial goals.
1. Performance: You can look for large-cap mutual funds that have a consistent track record of outperforming their benchmark index and peers over a long-term period, typically at least 5 yrs. Analysing the historical performance can give you insights into how the fund has managed various market cycles.
2. Expense Ratio: Choosing funds with a lower expense ratio may be beneficial as it helps reduce the overall investment cost. A lower expense ratio means that a greater portion of the returns stays with you, potentially enhancing your long-term gains.
3. Investment Strategy: It is important to ensure that the fund’s investment strategy aligns with your own investment objectives and risk tolerance. Large-cap mutual funds generally invest in well-established companies, but you should consider whether the fund’s approach matches your financial goals.
4. Portfolio Concentration: You can evaluate the fund’s portfolio concentration to avoid funds that are overly invested in a few sectors or stocks. High concentration can increase risk, so diversifying across various sectors may help mitigate potential downsides.
How to Invest in the Best Large Cap Funds?
You can easily invest in the best large cap mutual funds to invest in 2024 by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best large cap funds to invest in 2024 which aligns with your investment thesis. You can easily select and learn more about the best large cap funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
- Once you have selected the funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
How are Returns on Largecap Mutual Funds Calculated?
Returns on top-ranked Large Cap Mutual Funds are calculated using a simple method known as the Time-Weighted Rate of Return. This method takes into account the change in the Net Asset Value (NAV) of the fund over a specific period, along with any income generated by the fund during that time.
Formula for Time – Weighted Rate of Return = [(Ending Value + Income) / (Beginning Value + Investments – Redemptions)] – 1
Taxation on Large Cap Mutual Funds as per the Union Budget 2024-25
Large cap mutual funds are usually equity funds that are taxed accordingly. Being aware of these tax implications is essential for making informed financial decisions. The Union Budget for 2024-25 has made significant changes to the taxation on equity mutual funds. Here we have listed these changes, along with the revised tax rates for equity mutual funds:
Short-Term Capital Gains Tax
Any gains made when holding equity mutual funds for less than 12 months are considered short-term capital gains. The Union Budget 2024-25 increased the tax rate on these gains to 20%. The STCG tax rate was previously 15%.
Long-Term Capital Gains Tax
For equity mutual funds held for over a year, gains are classified as long-term capital gains. The new budget introduces these key changes:
- Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
- Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
- Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Benefits of Investing in Large Cap Index Funds
There are several benefits to investing in large-cap index funds, including:
- Diversification: Large-cap index funds invest in a diversified basket of stocks, which helps to reduce your risk.
- Low Cost: Large-cap index funds typically have lower expense ratios than actively managed mutual funds. This means that you keep more of your investment returns in your pocket.
- Transparency: Large-cap index funds are transparent about their holdings and investment strategy.
- Tax Efficiency: Large-cap index funds are generally more tax-efficient than actively managed mutual funds.
Risks Involved While Investing in Large Cap Index Funds
Investing in Large Cap Index Funds can be a smart move, but like any financial journey, there can be some associated risks.
- Market Fluctuations: The stock market can be like a seesaw, going up and down. Investing in large-cap index funds means you can maybe experience some of these market swings.
- Economic Factors: The economy can affect large-cap companies. Maybe during an economic downturn, even the best large cap mutual fund in India can stumble. So, be prepared for these ups and downs.
- Concentration Risk: Large cap index funds can often be weighted towards a handful of the biggest companies. This concentration can make you vulnerable if those few companies face trouble.
- Limited Growth: Large cap companies are already well-established, which means their growth might be slower compared to smaller companies. So, you may not see rapid returns even with the best large cap mutual funds in India.
- Inflation: Inflation can eat into your real returns over time. Large cap index funds may not always outpace inflation, potentially affecting your purchasing power.
To Wrap It Up…
In conclusion, investing in Large Cap Index Funds can be a smart move for those who seek a steady and reliable path to wealth growth. So, whether you’re new to investing or a seasoned pro, you can perhaps find a place for Large Cap Index Funds in your portfolio. Remember, while they may not be the flashiest option, they bring a reliable, long-term approach to your investment journey.
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Frequently Asked Questions (FAQs) on Large Cap Funds
Large cap funds can be suitable investments for 3 years or more. However, it is important to note that all investments carry some risk, and there is no guarantee that large cap funds will generate positive returns over any given period of time.
Large cap funds can be a good option for new investors. This is because they are relatively low-risk and offer the potential for good returns over the long term. However, all investors need to conduct their own research and consult a financial advisor before investing.
Returns on large cap mutual funds vary depending on the fund and the market conditions. For example, the Nifty 50 index has generated an average annual return of over 12% over the past 10 years.
Investors should evaluate their investment objectives and risk tolerance before deciding how long to stay invested in any kind of mutual fund.
Investing and adding the two best large cap mutual funds is not mandatory. However, one must consider their risk appetite and investment goals before investing.
You can invest in large-cap mutual funds at any time.
Here is a list of top large cap mutual funds.
1. Nippon India Large Cap Fund
2. ICICI Pru Bluechip Fund
3. Invesco India Largecap Fund
4. Canara Rob Bluechip Equity Fund
5. JM Large Cap Fund
Note: The list of top 5 large cap funds is only meant for educational purposes and is not recommendatory.
