These funds invest in the bluechip companies in India by market capitalisation. As per regulations, large-cap funds need to invest at least 80% of their assets in the top 100 companies.
Large-cap funds are relatively less volatile because they invest in market leaders that are generally stable.
Large-cap funds provide you ownership in household names.
These funds should be a part of your core portfolio & held for at least 5 years.
Top schemes of Large Cap Mutual Funds
Fund Name | Returns | Actions | ||
---|---|---|---|---|
1 Year | 3 Year | 5 Year |
Total Invested : ₹ 6,00,000
Profit : ₹ 56,200,000
Current value : ₹ 1,16,20,000
Large-cap funds are considered relatively low risk compared to other categories like mid and small-cap funds. These funds invest the majority of their assets in India's top companies that have a track record, proven business model, are well-established, and stable. Thus, these funds fall less during market volatility.
Although equity funds are volatile by nature. You should invest according to your financial goals, risk tolerance, and time horizon.
To find the best large-cap funds, you should look for:
Consistent Performance - Look for funds that have outperformed their benchmark over 3, 5, and 10 years.
Expense Ratio - Although the expense ratio matters, other factors are equally important.
Strong Fund Manager - Experience and track record matter.
Diversified Portfolio - Exposure to top-performing sectors and stable companies.
Low Volatility & High Liquidity - Less risk compared to mid/small-cap funds.
Good Risk-Adjusted Returns - Check Sharpe Ratio & Beta to assess performance vs. risk.
Capital appreciation: The large-cap category has provided an average 14% return since its inception. However, past performance may or may not be repeated.
Low risk: Large-cap funds, due to their stability, are comparatively lower risk than mid and small-cap funds.
High liquidity: Large-cap stocks are highly liquid; they are frequently traded.
You should choose a large-cap fund that aligns with your investment goals and risk profile. But consult your financial advisor or MFD before investing.
Large-cap mutual funds might be a good investment for someone who:
Want steady & stable long-term returns (5-7 years horizon).
Prefer lower risk compared to mid/small caps.
Are new to investing or building wealth gradually.
When selecting the best blue chip fund, you should define your investment objectives, like:
Goal: What do you want to achieve
Time: When do you want to achieve the goal
Risk: How much risk can you take
Stable Returns (10-15% CAGR) - Lower volatility but steady growth.
Established Companies - Invest in market leaders with strong fundamentals.
Medium to Long-Term (5+ years) - Safer for wealth preservation.
Low to Moderate Risk - Less impacted during market crashes.
High Liquidity - Easy to buy & sell anytime.
Ideal for Conservative Investors - Best for those seeking low-risk, steady growth.
High Growth Potential - Can deliver 20%+ CAGR in bull markets.
Undervalued Opportunities - Invest in emerging companies with massive upside
Best for Long-Term (7-10+ years) - Needs time to ride out volatility.
High Volatility - Can drop 30 %+ in bear markets.
Lower Liquidity - Harder to sell in market downturns.
For Aggressive Investors - Best for those who can handle risk & long holding periods.
New & inexperienced investors
Risk-averse individuals
Someone who wants a solid core for a portfolio
Someone looking for steady wealth creation
Long-term investors