Large Cap Mutual Funds

Invest in Large Cap Mutual Funds to get access to India's top 100 companies by market capitalisation. Explore funds that maintain a lower risk profile than flexi-cap, mid-cap, and small-cap funds. Benefit from stable and consistent growth with a focus on blue-chip companies.

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Best Large Cap Mutual Funds to Invest

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ICICI Prudential Asset Management Company LimitedHDFC Asset Management Co LtdSBI Funds Management LtdKotak Mahindra Asset Management Co LtdNippon Life India Asset Management LtdAditya Birla Sun Life AMC LtdAxis Asset Management Company LimitedUTI Asset Management Co LtdMirae Asset Investment Managers (India) Private LimitedTata Asset Management LimitedDSP Asset Managers Private LimitedBandhan Asset Management Company LimitedDSP Investment Managers Private LimitedHSBC Asset Management(India)Private LtdIDFC Asset Management Company LimitedCanara Robeco Asset Management Co. Ltd.Franklin Templeton Asst Mgmt(IND)Pvt LtdEdelweiss Asset Management LimitedQuant Money Managers LimitedInvesco Asset Management (India) Private LtdPPFAS Asset Management Pvt. LtdMirae Asset Mutual FundSundaram Asset Management Company LtdMotilal Oswal Asset Management Co. LtdMirae Asset Global Inv (India) Pvt. LtdBaroda BNP Paribas Asset Management India Pvt. Ltd.LIC Mutual Fund Asset Management LimitedJM Financial Asset Management LimitedPGIM India Asset Management Private LimitedDaiwa Asset Mgmt. (India) Pvt. Ltd.Mahindra Manulife Investment Management Pvt. Ltd.Fund PineBridge Mutual FundUnion Asset Management Co. Pvt. Ltd.Baroda Asset Management India LimitedPrincipal Asset Management Private LimitedWhiteOak Capital Asset Management LimitedBajaj Finserv Asset Management LimitedJPMorgan Asset Management India Pvt. Ltd360 ONE Asset Management LimitedEdelweiss Mutual FundBank of India Investment Managers Private LimitedITI Asset Management LimitedNavi AMC LimitedNJ Asset Management Private LimitedICICI Prudential Asset Mgmt.Company LimitedFranklin Templeton Asset ManagementIDBI Asset Management LimitedQuantum Asset Management Co Pvt. Ltd.Samco Asset Management Pvt LtdHelios Capital Asset Management (India) Private LimitedGroww Asset Management Ltd.Trust Asset Management Private LimitedTaurus Asset Management Company LimitedShriram Asset Management Co LtdZerodha Asset Management Private LimitedOld Bridge Asset Management Private LimitedING Investment Mgnt (India) Private Ltd.Baroda BNP Paribas Mutual Fund
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What are Large Cap Mutual Funds?

Large Cap Mutual Funds invest your money in the biggest and most stable companies in the stock market - firms with a market cap above ₹20,000 crores. These funds present a lower-risk option for your investment portfolio as compared to other mutual funds like flexi-cap, mid-cap, and small-cap funds. As per SEBI, these funds invest 80% of their assets in the top 1 to 100 companies on the stock exchange.

Benefits of Investing in Top Large Cap Mutual Fund

  • Steady in Rough Markets

    These funds invest in large companies that are often less affected by market ups and downs, providing a much steadier investment option.

  • Proven Performers

    The companies in Large Cap Funds have a history of consistent performance, which can mean more predictable results and reliable growth of your investment.

Limitations of Investing in Equity Large Cap Funds

  • Lower Growth Potential

    Large cap funds invest in established companies that may offer slower growth compared to smaller companies. Investors seeking higher returns may find large cap funds less attractive.

  • Market Sensitivity

    While large cap funds are generally less volatile, they are not immune to market downturns. Economic downturns or sector-specific issues can impact their performance, leading to potential losses.

Who should invest in best Large Cap Funds?

  • Stable Growth Seekers

    Large cap funds invest in well-established, financially sound companies with a history of stable performance. These funds are ideal for investors looking for consistent growth and lower volatility compared to mid or small cap funds.

  • Risk-Averse Investors

    Large cap funds tend to be less volatile than smaller-cap funds. They are suited for investors who prefer a safer investment with relatively lower risk, especially during market downturns.

Taxation on Large Cap Funds

  • Short-term capital gains (STCG):

    If you sell your mutual fund units within a year of buying them, any profit you make is counted as short-term capital gains and is taxed at 15%.

  • Long-term capital gains (LTCG):

    If you sell your units after holding them for more than a year, the profit is considered long-term capital gains. Here, any gains above ₹1 lakh in a financial year are taxed at 10%.

Frequently Asked Questions

Large Cap Mutual Funds are equity mutual funds that invest primarily in large-cap companies, which are typically the top 100 companies by market capitalization in a particular stock market. These companies are well-established, financially stable, and have a strong track record of performance. Large cap funds aim to provide steady and reliable returns with lower volatility compared to mid-cap or small-cap funds. They are suitable for investors seeking relatively lower risk and consistent growth over the long term.

Based on 5 year returns, the best large cap mutual funds to invest are:
 

S.noFund Name5 Year Returns
(Annualized)
1Baroda BNP Paribas Large Cap Fund Direct Growth20.27%
2JM Large Cap Fund Direct Growth20.18%
3Nippon India Large Cap Fund Direct Growth20.10%
4Canara Robeco Bluechip Equity Fund Direct Growth20.08%
5ICICI Prudential Bluechip Fund Direct Growth19.80%


 

While large cap funds are generally safer than other types of funds like small cap or mid cap funds, they are not completely risk-free. The value of your investment can go down if the companies the fund invests in perform poorly.

Large cap mutual funds are best suited for long-term investment horizons, typically ranging from 5 to 10 years or more. Investing for the long term helps to mitigate short-term market volatility and allows the investment to benefit from the stable growth of well-established companies.

It's a good idea to check on your investments at least once a year. This helps you understand how your funds are performing and whether you need to make any changes based on your financial goals or market conditions.

Large cap funds are typically recommended for long-term investments because of the nature of equity markets. For short-term goals, less volatile investment options like debt mutual funds might be more suitable.

According to AMFI, large cap mutual funds should invest at least 80% investment in large cap stocks. These funds primarily invest in well-established companies with a large market capitalization, typically those that are leaders in their industries. These companies are generally listed on major stock exchanges and have a strong track record of performance, stability, and profitability. Examples include blue-chip companies in sectors like technology, finance, healthcare, and consumer goods.

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