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Large Cap Mutual Funds

Large-cap Fund is a good starting point in mutual fund investment, which has a lower risk but can generate higher returns. If you are new to the arena of investments, you might find it intimidating to choose suitable equity funds for you. View More

Large-cap funds are equity funds that invest a large proportion of the corpus under blue-chip companies with a large market capitalization or size like Reliance, TCS, ITC, etc. These companies are leaders in their fields and have a stellar reputation and a consistent track record of high profits on investment (in extended periods).

Best Large Cap Mutual Funds

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Search Result - 33 Mutual Funds

Who Should Invest in Large Cap Mutual Funds?

Mutual funds are categorized as large-cap funds, mid-cap funds, and low-cap funds according to the market capitalization of companies. Large-cap funds invest most assets in top-notch companies with stable growth and are not severely affected by market changes. As a result, large-cap funds offer steady returns, good capital appreciation in the long run, and regular dividends. View More

Therefore, it is the ideal investment avenue for risk-averse people or people who do not want their returns to fluctuate significantly, like investors new to equity funds.
A large-cap fund is also ideal for people willing to invest their assets for a long-term window, like people planning investments for their retirement.
However, it is also essential to keep in mind that large-cap fund returns are low. So only invest in these if you want stable compounding of assets at minimal risks.
Since large-cap fund returns are comparatively lower than other mutual funds, it is best to hold them for a minimum of 3 to 5 years. Thus, large-cap funds are best for people who have surplus cash with them.
Large-cap funds are also a good investment option for people who want to take advantage of market fluctuations but do not wish to engage in high-risk investment options.
It is also critical to keep in mind that a tax of 15% is levied on your capital gains from large-cap funds if you hold your funds for less than a year. Hence, it is not a good option for people with short-term investment goals.

Features of Large Cap Mutual Funds

Expense Ratio
Fund houses charge a fee to supervise your investments in large-cap mutual funds. This fee is called the expense ratio; it amounts to a certain proportion of the fund’s total assets. SEBI has capped this expense ratio to 2.5%, meaning no company can charge more than that to manage your investment portfolio. However, it is wise to research and look for a scheme that offers a lower expense ratio to have maximum returns. View More

Investment Period
Large-cap funds invest in top-tier companies which are already at their highest potential; hence the growth of the companies is not exponential but relatively slow and steady. Coupled with this, these funds are liable to market changes, although any slump in return is made up in the long run since blue-chip companies are financially stable and can seldom crash down completely. Hence, these funds are meant to maximize returns for a longer time horizon.

Taxability of Large Cap Funds

Dividend Distribution Tax
Large-cap funds are subject to Dividend Distribution Tax like any other equity fund. Fund houses deduct a 10% DDT when paying the fund’s dividends.

Capital Gains Tax
When you dissolve your funds, tax is deducted on the capital gains. However, the tax percentage is determined by the holding period. View More

If you dissolve your funds within one year, the capital gains are taxable under Short Term Capital Gain at 15%.
However, the capital gain is taxed under Long Term Capital Gain for a holding period longer than one year. The capital gain is tax-free up to 1 lakh, beyond which it is taxed at the rate of 10% without any indexation benefits.
It is best to conduct thorough research before investing in large-cap funds because even the best large-cap funds are subject to market volatility and the taxability of these funds is moderately high.

Risk Involved in Large Cap Funds

Like any other equity mutual fund, market changes affect large-cap funds. However, these risks are relatively low.
The Net Asset Value (NAV) of a large-cap mutual fund does not fluctuate much, View More

compared to small-cap or mid-cap funds, even in economic recessions since blue-chip companies are financially stable. Hence, these funds lend your investment portfolio the needed stability.
Moreover, these top-tier companies belong to the range of top 100 companies based on market capitalization, have a stable administration, sustainable business practices, and exhibit substantial growth yearly. Hence, there is a significantly low chance of your investment getting corroded. Of course, there is always the risk of returns dipping during a lower market performance (during the bear phase), but they are recovered in the long run.
It is imperative to keep in mind that although large-cap funds offer low risks, in terms of returns, they are not too high or profitable as compared to mid-cap and small-cap funds. However, unlike other mutual funds, large-cap funds are built to handle the stock market’s volatility, and hence they are low-risk investments. It is essential to reiterate that all investments come with a certain risk.

Advantages of Large Cap Funds

Large-cap ventures have steady revenue generation with sound business plans. Hence, the chances of your large-cap funds plummeting are slim. These funds offer stability to your investment profile. View More

The stock prices of blue-chip companies do not fluctuate significantly. Thus, such companies offer better capital appreciation to their investors.
Top-tier companies can endure market turbulence (bear market). Therefore, large-cap funds can sustain even in times of recessions.
Large-cap funds also offer good liquidity, which helps you manage your investment portfolio without causing significant loss even during adverse market conditions.
Large-cap ventures are well-known companies that publish clear business goals and financial statements every year. Therefore, it is easy for investors to study its data and decide if it is a good fit.
People new to the domain of investments with a low-risk appetite and without much knowledge of market performance can benefit by investing in large-cap funds (top-tier companies).
In a nutshell, investment is subjective. We have discussed large-cap funds in detail to illustrate the risks and benefits. Risk and returns are two scales of investment. Pick your equity mutual fund depending on the parameter that tips your scale.

Popular Large Cap Mutual Funds

  • Fund Name
  • Min SIP Investment Amt
  • AUM (Cr.)
  • 3Y Return

Canara Robeco Bluechip Equity Fund – Direct Growth is an Large Cap scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Shridatta Bhandwaldar. With an impressive AUM of ₹10,182 Crores, this scheme's latest NAV is ₹56.03 as of 07-12-23.

Canara Robeco Bluechip Equity Fund – Direct Growth scheme has delivered a return performance of 16.3% in the last 1 year, 17.6% in the last 3 years, and an 15.1% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹10,182
  • 3Y Return
  • 16.3%

Kotak Bluechip Fund – Direct Growth is an Large Cap scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Harish Krishnan. With an impressive AUM of ₹6,405 Crores, this scheme's latest NAV is ₹512.436 as of 07-12-23.

Kotak Bluechip Fund – Direct Growth scheme has delivered a return performance of 17.2% in the last 1 year, 19% in the last 3 years, and an 15% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹6,405
  • 3Y Return
  • 17.2%

ICICI Pru Bluechip Fund – Direct Growth is an Large Cap scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Anish Tawakley. With an impressive AUM of ₹41,269 Crores, this scheme's latest NAV is ₹93.08 as of 07-12-23.

ICICI Pru Bluechip Fund – Direct Growth scheme has delivered a return performance of 20.7% in the last 1 year, 21.8% in the last 3 years, and an 15.9% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹41,269
  • 3Y Return
  • 20.7%

Invesco India Largecap Fund – DirectGrowth is an Large Cap scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Amit Nigam. With an impressive AUM of ₹785 Crores, this scheme's latest NAV is ₹62.41 as of 07-12-23.

Invesco India Largecap Fund – DirectGrowth scheme has delivered a return performance of 19.1% in the last 1 year, 19.4% in the last 3 years, and an 15.3% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹1,000
  • AUM (Cr.)
  • ₹785
  • 3Y Return
  • 19.1%

Baroda BNP Paribas Large Cap Fund – Direct Growth is an Large Cap scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Jitendra Sriram. With an impressive AUM of ₹1,484 Crores, this scheme's latest NAV is ₹196.3471 as of 07-12-23.

Baroda BNP Paribas Large Cap Fund – Direct Growth scheme has delivered a return performance of 17.2% in the last 1 year, 18.4% in the last 3 years, and an 15.7% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹1,484
  • 3Y Return
  • 17.2%

AXIS Bluechip Fund – Direct Growth is an Large Cap scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Shreyash Devalkar. With an impressive AUM of ₹30,733 Crores, this scheme's latest NAV is ₹56.13 as of 07-12-23.

AXIS Bluechip Fund – Direct Growth scheme has delivered a return performance of 11.5% in the last 1 year, 12.4% in the last 3 years, and an 15% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹30,733
  • 3Y Return
  • 11.5%

IDBI India Top 100 Equity Fund – Direct Growth is an Large Cap scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Alok Ranjan. With an impressive AUM of ₹654 Crores, this scheme's latest NAV is ₹49.62 as of 28-07-23.

IDBI India Top 100 Equity Fund – Direct Growth scheme has delivered a return performance of 10.8% in the last 1 year, 21.3% in the last 3 years, and an - since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹5,000
  • AUM (Cr.)
  • ₹654
  • 3Y Return
  • 10.8%

UTI-Large Cap Fund – Direct Growth is an Large Cap scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Karthikraj Lakshmanan. With an impressive AUM of ₹11,077 Crores, this scheme's latest NAV is ₹245.2612 as of 07-12-23.

UTI-Large Cap Fund – Direct Growth scheme has delivered a return performance of 14% in the last 1 year, 17.1% in the last 3 years, and an 14.1% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹100
  • AUM (Cr.)
  • ₹11,077
  • 3Y Return
  • 14%

Mahindra Manulife Large Cap Fund – Dir Growth is an Large Cap scheme that was launched on 15-03-19 and is currently under the management of our experienced fund manager Abhinav Khandelwal. With an impressive AUM of ₹267 Crores, this scheme's latest NAV is ₹20.2776 as of 07-12-23.

Mahindra Manulife Large Cap Fund – Dir Growth scheme has delivered a return performance of 15.2% in the last 1 year, 19.5% in the last 3 years, and an 16.1% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹1,000
  • AUM (Cr.)
  • ₹267
  • 3Y Return
  • 15.2%

Bandhan Large Cap Fund – Direct Growth is an Large Cap scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Sumit Agrawal. With an impressive AUM of ₹1,122 Crores, this scheme's latest NAV is ₹67.074 as of 07-12-23.

Bandhan Large Cap Fund – Direct Growth scheme has delivered a return performance of 18.4% in the last 1 year, 17.6% in the last 3 years, and an 13.2% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Large Cap funds.

  • Min SIP Investment Amt
  • ₹1,000
  • AUM (Cr.)
  • ₹1,122
  • 3Y Return
  • 18.4%

Frequently Asked Questions

What factors to consider before investing in Large Cap Funds?

Before investing in large-cap funds, you must consider factors like Investment Risks, Expense Ratios, investment horizons, and Taxes on Capital gains.

What are the benefits of investing in Large Cap mutual funds?

Large-cap funds have several advantages. They invest in companies that have performed well in the past and are known as permanent investment options. These are best for Investors who wish to balance risk and return. Large-cap-funds provide investment stability, better capital growth, sound investment decisions, high liquidity, and can withstand the recession because of their diversification into several sectors.

Are Large Cap Mutual Funds Tax-Free Equity Funds?

No, returns from large-cap equity funds held longer than 12 months fall under the 10% tax bracket. However, returns up to Rs. 1 lakh are exempted from taxation. If the investment period is less than 1 year, the applicable tax deduction is 15%.

Who Are These Funds Suited For?

Large-cap funds invest mainly in companies with high-end market capitalization greater than Rs. 20,000 crores. These funds are equity funds that invest in big organizations known to generate stable returns and rule the market. Investors looking for an average risk factor, better exposure to equities, and a portfolio that is well-protected from the bearish markets, must invest in large-cap funds. These funds also go through heavy market fluctuations, so investors must consider the risk factor and investment objective before indulging in these schemes.

Large Cap Funds bring much-needed stability to tailor your investment funds accordingly. Large-cap funds may not promise the market’s return expectations, unlike mid- or small-cap stocks; however, they provide a lower level of risk than other types of equity funds.

Is it reasonable to invest in Large Cap Funds?

Large-cap funds are ideal for investors seeking stable returns with relatively lower risk. These funds are based on the horizon of your investment. To get the most out of these funds, it is recommended that you should invest in them for at least 5-7 years. For investors with higher risk tolerance and an appetite for higher returns, it’s better to invest in mid or small-capitalization funds.

Are Large Cap Mutual Funds risky?

Large mutual funds are relatively less risky than the short and medium term when compared to other equity instruments.

Who manages Large Cap Mutual funds?

Like every other Mutual fund system, large-cap funds are also managed by professional fund managers or administrators.

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