Best Large Cap Funds

Large Cap Mutual Funds

Large-cap mutual funds invest in top-ranked, stable and dominant companies with proven track records based on market capitalization such as Reliance, TCS, and HUL, etc, offering low-risk and long-term growth investment options for investors.
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Disclaimer : Projections/estimations is backtested using historical data

Insights on Large Cap Funds

Performance vs. Mid Cap and Small Cap Funds

  • In the last 1 year, large cap funds have underperformed both mid cap funds and small cap funds
  • In the last 3 years, large cap funds have underperformed both mid cap funds and small cap funds
  • In the last 5 years, large cap funds have underperformed both mid cap funds and small cap funds

Top Large Cap Funds by Net Inflow

  • ICICI Prudential Bluechip Fund Direct Plan Growth has seen net inflow of ₹1053.7 Cr in the last 6 months in the large cap funds category
  • SBI Bluechip Fund Direct Growth has seen net inflow of ₹1039.9 Cr in the last 6 months in the large cap funds category
  • Nippon India Large Cap Fund - Direct Plan - Growth Plan has seen net inflow of ₹897.9 Cr in the last 6 months in the large cap funds category

Bottom Large Cap Funds by Net Outflow

  • Axis Bluechip Fund Direct Plan Growth has seen net outflow of ₹3397.2 Cr in the last 6 months in the large cap funds category
  • Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth has seen net outflow of ₹496.3 Cr in the last 6 months in the large cap funds category
  • Mirae Asset Large Cap Fund Direct Plan Growth has seen net outflow of ₹481.0 Cr in the last 6 months in the large cap funds category

Top Holdings of Large Cap Funds

  • Infosys Ltd is held by 30 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹12832.96Cr
  • Reliance Industries Ltd is held by 30 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹15213.69Cr
  • HDFC Bank Ltd is held by 30 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹19713.84Cr

Top New Holdings Added by Large Cap Funds

  • In the last 6 months, Housing Development Finance Corporation Ltd stock has been added by 6 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹2708.08Cr
  • In the last 6 months, Bharat Electronics Ltd stock has been added by 5 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹97.76Cr
  • In the last 6 months, LTI Mindtree Ltd stock has been added by 5 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹260.64Cr

Top Holdings where Large Cap Funds increased investment

  • In the last 6 Months, Reliance Industries Ltd stock has been added by 20 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹418.36Cr
  • In the last 6 Months, Housing Development Finance Corporation Ltd stock has been added by 15 out of 31 mutual funds in the large cap funds category, with a total investment value of ₹2708.08Cr
  • In the last 6 Months, Infosys Ltd stock has been added by 13 out of 31 mutual funds in the large cap funds category
 

Large Cap Funds

Best large cap mutual funds are those funds that invest a major portion of their corpus in large cap companies. Businesses with a market capitalisation of Rs 20,000 crore or more fall under the large cap category. These companies are financially strong, well-established, and have huge market share. Large cap stocks are the top-listed stocks of any recognised index. As per SEBI’s categorisation, large cap companies rank in the top 100 stocks according to market capitalization. Hence, they are some of the most sought after stocks especially during market underperformance or crisis.

Advantages of investing in best large cap mutual funds

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Stability

Large cap companies have consistent income and growth and are therefore considered a safer investment. Investing in best large cap funds will add stability to your portfolio and give you potentially stable and high returns.
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Capital Appreciation

Large cap funds are able to provide considerable capital appreciation to their investors for an investment period of at least 5-7 years. Some large cap companies also pay regular dividends because of their solid financials and consistent capital generation.
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High Liquidity

Large cap funds offer good liquidity in a bear market. Investors can easily liquidate their portfolios to minimise losses in case of a volatile market. It allows fund managers to maximise returns by buying or selling as needed.
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Diversification

Top Large cap funds give an opportunity to invest in leading companies across diversified sectors without the need for continuous monitoring.
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Withstand Market Slump

Large cap funds are reliable enough to withstand market downturns.

Things to consider before Investing in Best Large Cap Mutual Funds in 2023

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Investment Cost

This includes expense ratio and exit load. Investment companies charge a fee called expense ratio which includes management fees (fees of fund manager) and operational costs. The lower the expense ratio and exit load, the higher the profit. The average expense ratio for a large cap fund is in the range of 0.5% - 1.50%.
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Risk Appetite

Investors who want equity exposure but don’t have high-risk tolerance can opt for large cap funds as market risks don’t impact these funds. If you are looking for stability, you can build your entire portfolio around some of the best large cap mutual funds.
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Investment Horizon

A Large cap fund is most suited for investors with a long investment horizon. To experience the full return potential of the fund, investors should stay invested for a minimum 5-7 year period. The long-term balances out any short-term market underperformance and ensures a stable return.
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Financial Goals

Large cap funds are best suited for those individuals who want equity exposure but are not ready to take the high risk involved in equity investments. These funds are ideal for wealth creation to achieve long-term financial goals.
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Experience of the Fund Manager

A fund manager’s experience is a significant factor to consider before investing. His expertise will only decide the return generation.
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Past Performance

Before shortlisting a fund, do your research well. Select those funds which have been consistent in their performance over a significant period of time. Make your list of top 10 large cap mutual funds, compare and analyse to find the most suitable large cap fund to match your criteria.

How to start investing online in the best large cap funds 2023?

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STEP 1
Download the INDmoney App
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STEP 2
Create your profile
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STEP 3
Select any best large-cap fund from our catalogue
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STEP 4
Choose between Starting a SIP or One time lumpsum
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STEP 5
Complete the payment process

Outlook

Large cap funds are a good investment choice for capital appreciation in the long term because large cap companies are market leaders having a good track record of generating wealth. Market conditions can affect even the top large cap mutual funds; however, the net asset value of large cap funds does not vary much unlike other equity funds. Thus, investment in these companies gives potentially steady returns with low risk.

Limitations of Large Cap Funds

  • Limited Growth Potential: Large-cap companies are already established, this usually leaves them with limited potential for growth.
  • Limited Diversification: There are only 100 large cap stocks, this limits the diversification possibility for the fund.
  • Market Risk: Large-cap stocks are vulnerable to market downturns and economic shocks. Although, their vulnerability is less as they are primarily established companies in their respective industries.
  • High Correlation: Large-cap stocks tend to move together, reducing diversification benefits.
  • Limited Opportunity: Large-cap stocks are widely followed by analysts, limiting the opportunity for outperformance.

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