In large-cap mutual funds, a big portion of the investment is done in companies with a large market capitalization and are generally the top 100 companies in a market. Such companies are called large-cap companies.

These companies are strong, reputable and trustworthy. They have a long track-record of performance. Over a long-term, these large-cap funds might generate wealth slowly and steadily for their investors.

So, let’s look at the 3 best large-cap mutual funds you can invest in 2018.

Top 3 Large Cap Funds of 2018

Large-cap funds are the safest equity mutual funds you can invest in. They have the least risk among all equity mutual funds and offer the best returns for that level of risk.

It is recommended that you invest a majority of your equity investment in large-cap funds.

Here are the top 3 funds in the large-cap category.

1. SBI Bluechip Direct Fund

This large-cap equity oriented mutual fund launched on January 1, 2013. It is a fund with a moderately high risk and has given a return of 17.13% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 10.71%
3 years 11.42%
5 years 18.04%

This fund invests in the top 100 companies in terms of market capitalization, with the flexibility to invest up to 20% in mid-cap stocks. This fund is one of the most popular large-cap funds available in the market right now.

Key Information SBI Bluechip Fund:

NAV of SBI Bluechip Fund is ₹39.2701 (23-May-2018).

Rating by Groww4 star
AUM (Fund Size)₹17,869 Cr
Minimum SIP₹500
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark BSE S&P 100 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.35%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

2. Mirae Asset India Equity Fund

This large-cap equity oriented mutual fund launched on January 1, 2013. It is a fund with moderately a high risk and has given a return of 18.78% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 11.28%
3 years 13.33%
5 years 20.62 %

Returns from this fund is high as compared to other top funds in the same category, but you have to be patient and invest in for the longer horizon, at least 4 years

Key Information of Mirae Asset India Equity Fund as follows:

NAV of Mirae Asset India Equity Fund is NAV ₹47.717 (23-May-2018).

Rating by Groww5 star
AUM (Fund Size)₹6,123 Cr
Minimum SIP₹1000
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark BSE S&P 200 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.32%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

3. Reliance Large Cap Fund

This large cap equity oriented mutual fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 16.04% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 9.83%
3 years 10.27%
5 years 17.86%

This scheme is the most popular large-cap fund of 2018. As it is an equity oriented scheme, it is advisable to invest in through Systematic Investment Plan (SIP).

SIP is increasingly becoming a favorite of investors as they tend to more or less smoother out the anxiety related to market volatility.

Key Information of Reliance Large Cap Fund is as follows:

NAV of Reliance Large Cap Fund is ₹45.8921 (23-May-2018).

Rating by Groww5 star
AUM (Fund Size)₹4,149 Cr
Minimum SIP₹100
Minimum SWP₹1,00
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark BSE S&P 100 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.32%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

The secondary objective is to generate consistent returns by investing in debt and money market securities.

Top 5 Large Cap Funds: Bonus List

Here is an extended list of next top 5 large-cap funds to give you more options to invest in this mutual fund category.

1. Aditya Birla Sun Life Frontline Equity Fund 

This large-cap equity oriented mutual fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 15.94% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 9.11%
3 years 10.44%
5 years 16.95%

The fund usually maintains a large-cap allocation of 80 to 90%, with a mid-cap allocation of 10-20%. In the last few months, the mid-cap weights have been pegged up, resulting in an overweight position relative to the category.

Key Information of this fund is as follows:

Rating by Groww3 star
AUM (Fund Size)₹20,702 Cr
Minimum SIP₹1,000
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark BSE S&P 200 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.31%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

2. ICICI Prudential Focused Bluechip Equity Fund

This large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 15.89% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 18.24%
3 years 12.76%
5 years 18.60%

The fund has consistently beaten its benchmark and peers, though the margins of out-performance haven’t been large. It is a good fund for conservative investors.

Key Information of this fund are as follows:

Rating by Groww4 star
AUM (Fund Size)₹16,539 Cr
Minimum SIP₹1,000
Minimum SWP₹500
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark NIFTY 50 Total Return since its launch.
Age of the fund5 years old
Expense Ratio1.26%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

3. Motilal Oswal MOSt Focused 25 Fund 

This Large Cap Equity Oriented Mutual Fund launched on May 13, 2013. It is a fund with moderately high risk and has given a return of 17.72% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 9.32%
3 years 10.59%
5 years 17.92%

The fund’s track record is as yet too limited to draw conclusions about performance as it is new fund in large-cap category.

Key Information of this fund is as follows:

Rating by Groww4 star
AUM (Fund Size)₹945 Cr
Minimum SIP₹1,000
Minimum SWP₹1,000
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark NIFTY 50 since its launch.
Age of the fund5 years old
Expense Ratio1.46%
Exit LoadIf redeemed between 0 Days to 365 Days; exit load is 1%;
Type Open-ended

4. DSP BlackRock Focus Fund

This large-cap equity oriented mutual fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 13.86% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 7.21%
3 years 8.90%
5 years 16.93%

The fund has suffered a setback to returns in the last one year, with its returns trailing the benchmark by about 2 percentage points.

Key Information of this fund are as follows:

Rating by Groww4 star
AUM (Fund Size)₹2,843 Cr
Minimum SIP₹500
Minimum SWP₹500
Performance w.r.t its BenchmarkHas not consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.58%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

5. Invesco India Largecap Fund 

This large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 15.98% since its launch.

Returns per annum over the years from this fund are:

DurationReturns
1 year 13.54%
3 years 10.70%
5 years 16.40%

This fund has a slightly different mandate from other large-cap funds as it selects businesses that are in leadership positions in a sector. The fund saw its 3 star rating upgraded to 4 stars two years ago and has held on to the rating.

Key Information of this fund are as follows:

Rating by Groww4 star
AUM (Fund Size)₹137 Cr
Minimum SIP₹500
Minimum SWP₹500
Performance w.r.t its BenchmarkHas consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund5 years old
Expense Ratio1.14%
Exit LoadIf redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type Open Ended

The fund has been quite large-cap tilted, with a 90% plus allocation to large caps and 5-10% allocation to mid caps. Lately, the portfolio has been almost entirely large-cap oriented, with a 95% plus allocation. This could have slowed recent performance, given the sustained out performance from mid-cap stocks.

The objective of this fund is to generate long-term capital appreciation by investing in equity and equity related instruments including equity derivatives of companies which in our opinion are leaders in their respective industry or industry segment.

Things to Remember

There are a lot of factors you should look into before selecting a mutual fund scheme which will match your investment goals.

Following the few important things you should always remember before investing in Mutual Funds :

  1. Higher rates: don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.
  2. Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.
  3. Systematic Investment Plan (SIP) is much better and safer option for investing in equity oriented mutual funds.
  4. Direct plan for mutual fund gives you higher returns as compared to the regular plan of mutual fund schemes.
  5. STP route is best for all those investors who wish to invest a lump sum in mutual fund schemes because this way they get the dual benefits of comparative risk investment.
  6. Review your investment from time to time but not too often. Once a few weeks is good enough.

Also, there are many myths and false beliefs about mutual funds circulating in the markets from time to time. The most successful investors are the ones that ignore the myths and pay attention only to what actually needs their attention.

Read More: 10 Secrets Only Successful Mutual Fund Investors Know

To know more tips of investing in a mutual fund, Read More: 10 Tips on investing in Mutual Funds

Happy Investing!

Disclaimer:the views expressed here are of the author and do not reflect those of Groww.