Best Large Cap Mutual Funds

What are Large Cap Funds?

Large Cap Mutual Funds are open-ended equity schemes, which primarily invest in large cap companies. These funds have to invest at least 80% of their total assets in equity and equity related instruments of large cap companies. According to the SEBI guidelines, top 100 companies in terms of full market capitalisation are categorized as large cap companies.

Why Invest in Large Cap Funds?

• Large cap stocks tend to be less volatile than mid cap and small cap stocks, which leads large cap funds to deliver more stable returns than mid cap and small cap funds
• Large cap funds are free to invest across sectors, styles & themes, which allows these funds wider spectrum of investment opportunities than sectoral or thematic funds
• Being invested in large cap companies, these funds have investment exposure to sector leaders with strong pricing power.
• The relative stability provided by large cap funds makes them an excellent choice for building one’s core investment portfolio and steady wealth creation
• Large cap funds are likely to face lower drawdowns or value erosion than mid cap, small cap or ‘large & midcap’ funds during bearish market conditions
• Large cap funds usually tend to recover faster than small cap or midcap funds from steep market corrections or bearish market conditions

Top 10 Large Cap Mutual Funds

Fund Name	Returns (% p.a.)
	1 year	3 year	5 year	10 year
Nippon India Large Cap Fund	4.16	18.26	20.76	15.22
DSP Large Cap Fund	4.67	17.44	15.76	12.65
ICICI Prudential Large Cap Fund	6.14	17.31	18.52	15.30
Bandhan Large Cap Fund	3.67	16.25	15.61	13.83
Invesco India Largecap Fund	0.58	16.10	16.41	13.62
WhiteOak Capital Large Cap Fund	2.74	15.66	–	–
HDFC Large Cap Fund	2.71	14.94	17.64	14.07
Baroda BNP Paribas Large Cap Fund	-0.21	14.65	15.27	13.41
Aditya Birla Sun Life Large Cap Fund	4.34	14.58	16.16	13.53
JM Large Cap Fund	-2.82	14.54	14.80	12.00

Data as on December 11, 2025 

Explore Investment Options:

Bonds	Types of Bonds	Bonds vs FD
Corporate Bonds	Tax Free Bonds	Capital Gain Bonds
Government Bonds	Zero Coupon Bonds	Floating Rate Bonds

Risks of Investing in Large Cap Funds

• Despite their lower volatility, large cap funds can still generate negative returns depending on the market performance of their portfolio constituents and overall market conditions
• Macroeconomic factors like domestic or geo-political uncertainties, changes in taxation, adverse regulatory or policy changes, or industry specific factors like deteriorating demand supply conditions, increased competition, rising cost of capital, etc. can adversely impact the performance of the large cap companies in which the large cap schemes are invested in
• As mid cap and small cap companies offer higher growth potential than large cap companies, large cap funds often deliver lower returns than small cap and mid cap funds during periods of steep economic expansion

Who Should Invest in Large Cap Funds

• Large cap funds are suitable for investors seeking investment exposure to large cap stocks due to their lower volatility, proven track record, stronger fundamentals and consistent long term returns
• These funds also provide diversification for investors seeking to invest their funds across various themes and sectors
• The relative stability of large cap funds makes them a good option for first-time or relatively new equity market investors
• Large cap funds are also suitable for those who do not seek to chase the highest possible returns at all times