Best Large Cap Mutual Funds 2025
List of the top-performing large cap mutual funds sorted by returns, with their AUM and expense ratios.
What are Large Cap Mutual Funds?
As the name suggests, a large-cap fund invests primarily in large-cap stocks. According to SEBI (Securities and Exchange Board of India), large-cap companies are those that rank within the top 100 by market capitalisation. These companies are well-established with a strong track record of performance.
These funds are required by SEBI to invest at least 80% of their investments in equity and equity-related investments in large-cap companies.
According to recent data, large-cap funds have delivered average returns of 17-23% over the past 5 years, though performance varies significantly among fund managers. These funds require a disciplined investment approach and a minimum 5-7 year investment horizon to ride out market volatility and capture compound growth.
Large-cap funds are great to form the core of your equity mutual fund portfolio. Due to their size and stability, large-cap companies are considered safer investments compared to mid-cap and small-cap companies.
AUM Growth of Large Cap Mutual Funds - December 2025
In the past one month, the Nippon India Large Cap Fund - Direct Plan - Growth Plan has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹968.38 crore. This positions it as one of the top-performing Large Cap mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | |
|---|---|---|---|
 Nippon India Large Cap Fund Current AUM: 48.87K Cr | +₹968.38 Cr | 2.15% | Invest |
 HDFC Large Cap Fund Current AUM: 39.78K Cr | +₹271.33 Cr | 0.72% | Invest |
 UTI Large cap Fund Current AUM: 13.24K Cr | +₹223.87 Cr | 1.73% | Invest |
 ICICI Prudential Large Cap Fund Current AUM: 75.86K Cr | +₹206.63 Cr | 0.29% | Invest |
 DSP Large Cap Fund Current AUM: 6.93K Cr | +₹131.77 Cr | 2.06% | Invest |
Top Stock added by Large Cap Mutual Funds - December 2025
Over the last month, Titan Co Ltd has been added to the portfolios of 9 out of 36 Large Cap mutual funds. This signals growing confidence in the stock’s long-term growth prospects among Large Cap fund managers.
Top Stock sold by Large Cap Mutual Funds - December 2025
In contrast, HDFC Bank Ltd has been sold by 6 of 36 Large Cap mutual funds in the last one month. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.
Sector allocation of Large Cap mutual funds - December 2025
Over the last 6 months, Large Cap category has seen increased allocation towards Consumer Cyclical, Basic Materials, Industrial sectors and allocation in Real Estate, Energy, Tech sectors has decreased
Sector | AUM |
|---|---|
 Financial Services Increased by 2.02%, in last 6M | 1.35L Cr |
 Consumer Cyclical Increased by 30.07%, in last 6M | 58.36K Cr |
 Industrial Increased by 22.45%, in last 6M | 39.81K Cr |
 Tech Decreased by 0.03%, in last 6M | 31.22K Cr |
 Energy Decreased by 0.28%, in last 6M | 30.62K Cr |
 Consumer Defensive Increased by 5.45%, in last 6M | 29.23K Cr |
 Basic Materials Increased by 24.75%, in last 6M | 27.21K Cr |
 Health Increased by 10.91%, in last 6M | 25.63K Cr |
 Communication Increased by 11.56%, in last 6M | 17.88K Cr |
 Utilities Increased by 9.74%, in last 6M | 13.37K Cr |
 Real Estate Decreased by 5.65%, in last 6M | 2.7K Cr |
Benefits of Large Cap Mutual Fund
Large-cap mutual funds invest in companies that are established and are relatively less risky than a mid-cap or small-cap fund. Let’s look at the key benefits for an investor looking to invest in a large-cap fund:
1. Reliable Growth
Companies in these funds have a track record of offering steady growth in the medium to long term. They are big players that have stood through the volatility of the stock market. This means they are perfect for risk-averse investors.
2. High Liquidity
Unlike mid-cap or small-cap stocks, large-cap stocks are traded in high volume in the stock market. This means that if a proportion of investors were to withdraw their investments from the fund, they would easily be cashed out without affecting the value (NAV) of their assets.
3. Less Risky as Compared to Mid/Small Cap Fund
One significant advantage of large-cap mutual funds is their relative stability and lower risk profile compared to mid-cap or small-cap funds. This is because large-cap companies are typically well-established, financially sound, and have a proven track record, making them more resilient during economic downturns and less prone to the volatile price swings often seen in smaller, less mature companies.
Disadvantages of Large Cap Mutual Funds
Here are three risks associated with large-cap mutual funds:
1. Lower Growth Potential Compared to Small/Mid-Caps:
While large-cap companies are established and stable, their growth potential is often more limited compared to smaller, emerging companies. They might not offer the explosive growth opportunities that small or mid-cap funds sometimes do, leading to potentially lower returns during strong bull markets.
2. Broader Market Volatility
Despite strong company fundamentals, large-cap funds remain vulnerable to broader market volatility. Economic downturns or market corrections can still depress returns, even for well-performing underlying businesses.
3. Market Risks
Even with their inherent stability, large-cap funds are not immune to broader market downturns. These "market risks" encompass a wide range of factors, such as economic recessions, geopolitical events, shifts in investor sentiment, or rising interest rates, all of which can lead to widespread underperformance across the stock market.
Frequently Asked Questions
Are large cap mutual funds suitable for beginners?
Yes, large cap mutual funds are often recommended for beginners because they invest in stable, well-established companies. This makes them less volatile and easier to hold during market swings.
Why are large cap mutual funds considered less risky than other equity funds?
Large cap mutual funds invest in companies with large market capitalisations; typically among the top 100 companies by size in India. These firms tend to have established track records, stronger balance sheets, higher liquidity, and broader shareholder bases. Because of this, large cap funds generally exhibit lower volatility than mid-cap or small-cap funds, making them a more stable choice for many investors.
Should I Invest in Large Cap Mutual Funds?
Large Cap funds are ideal for investors looking for stable, long-term growth with lower volatility than mid or small-cap funds. If you prefer investing in established market leaders (like Reliance, HDFC Bank, or Tata Motors) and want to avoid the high risks associated with smaller companies, these funds suit your profile.
Why is the expense ratio for a large cap mutual fund lower than others?
Large cap mutual funds generally have lower expense ratios because large, established companies are easier to research and track. Their stocks are widely covered by analysts, which reduces the fund manager’s research effort and overall operating costs compared to mid or small cap funds.
What should be the ideal allocation of large cap mutual funds in my portfolio?
An ideal allocation to large cap mutual funds depends on how much stability you want in your equity portfolio. Many investors keep 40 to 60 percent of their equity allocation in large caps because they offer steadier returns and lower volatility. If you prefer a more conservative approach, you can allocate even more to large cap funds.
How long should I stay invested in a large cap mutual fund?
Since equity markets (even large cap ones) are cyclical, staying invested for at least 5-7 years, and preferably 10 years or more, helps smooth out downturns and gives time for compounding to work. If you invest with a short horizon and exit early during a market downturn, you may not realise full benefit.
If large cap mutual funds are “safer,” why invest in mid cap or small cap funds at all?
Large cap mutual funds provide stability and reliable growth, but they often offer lower potential upside compared to mid cap or small cap funds because the big companies already have much of their growth priced in the stock. If you have a longer time-horizon, higher risk appetite and want higher growth potential, then blending mid and small caps might help. The idea is that large cap funds anchor your portfolio, and higher-risk segments may supplement growth.
How do large cap mutual funds compare with other equity fund categories?
Large cap mutual funds are generally the most stable among equity categories. They invest in well-established companies that tend to be less volatile than mid and small caps. While their returns may be lower than high-growth categories, they offer stronger downside protection and smoother long-term performance.
What special risks unique to large cap mutual funds should I be aware of?
Large cap mutual funds carry lower risk than mid or small caps, but they’re not risk-free. Their main risk is market risk, where overall market downturns can still pull down large company stocks. They also face growth limitations, since large companies grow more slowly, which can hold back returns during strong bull markets when mid and small caps outperform.
Can large cap mutual funds outperform mid and small cap funds?
Large cap mutual funds can outperform during market corrections or uncertain periods because they offer better stability. However, in strong bull markets, mid and small cap funds may deliver higher returns due to faster growth potential.
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