Top 5 Large Cap Mutual Funds

Top Large-Cap Mutual Funds for Stable Growth in 2026

The foundation of prudent equity investing has always been large-cap mutual funds. They are perfect for investors who wish to participate in the stock market consistently without worrying about excessive volatility. These funds expose you to reputable companies that have withstood several economic cycles and continue to rule their respective industries by investing in India's top 100 companies by market capitalisation.

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What makes large-cap funds particularly appealing right now is their strong recent performance. Over the past three years, several funds have delivered annualised returns close to 20%, proving that stability and growth can go hand in hand. Whether you’re a new investor starting your equity journey or an experienced one looking to balance mid- and small-cap exposure, these five large-cap funds have stood out for their consistent returns and disciplined investment strategies.

Overview of Top 5 Large Cap Funds for 2026

Here are the details of top 5 large cap funds:

Nippon India Large Cap Fund

As of November 2025, investments in the well-diversified Nippon India Large Cap Fund were distributed among 71 stocks. The fund allocates 87% of its assets to large-cap stocks and maintains a small exposure to mid-cap (9%) and small-cap (4%) companies, with a primary focus on high-quality companies with solid fundamentals.

A long-term buy-and-hold strategy is indicated by a low portfolio turnover ratio of 28%. With significant exposure to financial services, energy, and infrastructure, its top holdings are HDFC Bank (9.09%), Reliance Industries (6.09%), and ICICI Bank (5.54%). The fund has performed well and consistently, with an AUM of ₹50,276.35 crore, an expense ratio of 1.48%, and 3-year returns of 19.54%.

ICICI Prudential Large Cap Fund

By closely aligning its sector allocation with the Nifty 100 Index, ICICI Prudential Large Cap Fund adopts a benchmark-aware strategy. The fund uses in-depth fundamental research, concentrating on valuation metrics like free cash flow, price-to-book value, and return on equity, rather than making aggressive sector bets.

Approximately 66 holdings, or 80–90% of the portfolio, are large-cap stocks, with the top 10 stocks accounting for roughly 55% of the total. At slightly over 28%, financial services are in the lead, followed by cars and auto parts. The fund has produced strong three-year returns of 18.49% while managing an AUM of ₹78,135.04 crore with an expense ratio of 1.4%.

DSP Large Cap Fund

DSP Large Cap Fund follows a more concentrated strategy, holding around 30 stocks compared to the category average. The fund prefers businesses with lower downside risk and aims to perform well across a full market cycle of 7+ years.

As of January 2026, the portfolio is allocated 90.62% to equity and 9.38% to cash and equivalents. Sector exposure is clearly focused, with 42.25% in BFSI, followed by automobiles (10.51%), pharmaceuticals (9.26%), and IT (9.22%). With an AUM of ₹7,163.95 crore, an expense ratio of 1.81%, and 3-year returns of 18.26%, the fund suits investors who prefer a high-conviction approach.

Bandhan Large Cap Fund

Bandhan Large Cap Fund adopts a growth-oriented strategy, investing in high-quality companies with scalable earnings and proven business models. The portfolio is designed to balance growth potential with downside protection.

As of December 2025, its top holdings include HDFC Bank (9.19%), ICICI Bank (7.28%), Reliance Industries (7.19%), Infosys (3.73%), and NTPC (3.58%). The fund follows an active management style, reflected in its portfolio turnover ratio of 130%.

With diversified sector exposure across financial services (29.75%), consumer cyclicals (14.11%), and technology (12.17%), the fund manages ₹2,051.6 crore in AUM, carries an expense ratio of 2.02%, and has generated 3-year returns of 17.88%.

Invesco India Large Cap Fund

Invesco India Large Cap Fund focuses on generating long-term capital appreciation by investing in large-cap companies that offer a blend of growth and value. The fund looks for market leaders and companies gaining market share, while prioritising strong cash flows and sustainable earnings growth.

It avoids high-debt businesses, deep cyclical sectors, and excessive global exposure, preferring companies with solid management and strong reputations. With an AUM of ₹1,721.73 crore, an expense ratio of 2.02%, and 3-year returns of 17.5%, the fund offers a balanced and disciplined approach to large-cap investing.

Conclusion

Large-cap mutual funds remain the core of sensible equity investing, offering a strong balance between stability and growth. The mutual fund schemes discussed above shows that investing in India’s most established companies can still generate healthy long-term returns, with three-year annualised performance close to 18-20%. Their disciplined strategies, focus on fundamentally strong businesses, and ability to withstand market volatility make them suitable for both new investors starting their journey and experienced investors seeking portfolio balance.

That said, large-cap funds should be approached with a long-term perspective. While short-term fluctuations are inevitable, these funds are best used as core holdings, complemented by mid- and small-cap exposure for higher growth potential. Investors should also look beyond returns and consider factors such as expense ratios, portfolio concentration, fund management style, and overall asset allocation. When invested patiently, ideally through SIPs, large-cap funds can deliver steady wealth creation with relatively lower risk over time.