Table of Content:
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 SEBI, top 100 companies in terms of full market capitalisation are categorized as large cap companies.
Why invest in large cap funds?
Large cap companies usually have a sustainable market share and competitive edge in their respective segments. These companies have steady cash flows and strong balance sheets, which makes them better positioned to deal with tough times. These companies are also traded more frequently and hence, are more liquid. All these factors make large cap companies less volatile and more capable of withstanding market downturns. Thus, by investing in large cap funds, investors will save themselves from the perils of undertaking independent stock selection while benefiting from a diversified portfolio consisting of top Indian companies.
Ideally, large cap funds should constitute the core, at least 50%, of one’s equity portfolio. Those with lower risk appetite can consider higher exposure to large cap funds.
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Top 10 Large Cap Mutual Funds
| Fund Name | Returns (% p.a.) | |||
| 1 year | 3 year | 5 year | 10 year | |
| Nippon India Large Cap Fund – Direct Plan | 4.96 | 24.16 | 26.88 | 15.14 |
| DSP Large Cap Fund – Direct Plan | 8.21 | 22.07 | 21.10 | 12.40 |
| ICICI Prudential Large Cap Fund – Direct Plan | 5.64 | 22.01 | 23.77 | 15.10 |
| Invesco India Largecap Fund – Direct Plan | 5.90 | 21.88 | 22.38 | 14.51 |
| Quant Focused Fund – Direct Plan | -0.45 | 21.53 | 25.71 | 15.80 |
| Edelweiss Large Cap Fund – Direct Plan | 3.72 | 20.81 | 21.84 | 13.89 |
| Baroda BNP Paribas Large Cap Fund – Direct Plan | 1.55 | 20.74 | 21.26 | 13.75 |
| Bandhan Large Cap Fund – Direct Plan | 4.57 | 20.53 | 21.21 | 13.59 |
| HDFC Large Cap Fund – Direct Plan | 2.28 | 20.36 | 23.10 | 13.60 |
| ITI Large Cap Fund – Direct Plan | 0.25 | 20.28 | — | — |
Data as on July 10, 2025
16 Comments
i want to create my portfolio with 3 funds in large category started with 5000 per month sip , pls suggest me to better funds who is performing in 2021.
Hi Arpit,
You can consider the top 3 funds mentioned in the table on the basis of their last 5 year returns .
I would like to invest rs 15000/pm in mutual fund via SIP, could you please advise fund name and distribution.
Hi SK Singh,
A more detailed description of your financial goals, exisiting investments and the investment horizons of your financial goals is required for suggesting funds to you. Assuming that you are planning to remain invested for the long term and you have already made sufficient allocation for your emergency fund and short-term financial goals, I will suggest you to start by investing Rs 5,000 per fund in the top 3 large cap funds mentioned in the table as per their last 5 year returns.
Hi, I’m new to mutual fund investments. I want to invest upto 50k in large cap mutual funds (around 2-3 funds) and 50k in multi cap (around 2-3 funds) per month in SIP for 5 years. My goal is to earn 1 crores in 5 years. Can you please suggest how to go about the investment?
Creating a mutual fund corpus of Rs 1 crore with just Rs 1 lakh per month seems to be difficult. Investing Rs 1 lakh per month in large cap and multicap funds for 5 years assuming an annualised return of 12% would create a corpus of Rs 81 lakh. Even assuming an annualised return of 15% from your mutual fund corpus would only create a corpus of Rs 88 lakh. Hence, I will suggest you to either increase your investment horizon to at least 6 years to create your desired corpus or increase your monthly SIP contribution to Rs 1.25 lakh assuming the same annualised return of 12%. Try to top-up your SIPs with lump sum investments in a staggered manner during steep market corrections like the one noticed during March and April this year. That can help you achieve your desired corpus sooner.
You can select the top 5 large cap funds from the table cited above based on their last 5 year returns. Click on https://www.paisabazaar.com/mutual-funds/best-multicap-funds/ to choose the best multicap funds.