The reverse of the small cap is a large cap where the funds invest in companies that have capital worth 20,000 crores or more. They are more trusted and stable compared to all other businesses in the market, and the funds that invest in these tend to provide stable returns. It has returns that are taxed at 15% if sold before one year, post this period a 10% tax is applicable on the gains
Large Cap funds are funds which invest a major component of investor’s money in all sizes of large companies. These funds have an objective of seeking capital appreciation through investment in high growth stocks.
Investing in Large Cap funds gives investors a chance of earning high returns which usually range between 10-14% in the long term but the tenure of investment also needs to be considerably large to avoid any losses in short term due to normal fluctuations and movements in business cycles.
Equity mutual funds give good results over a long period of time. The higher the investor is willing to take risk, the higher return will he be getting.
The least risky among mutual funds are large cap mutual funds. Here large cap funds usually invest in large cap companies. In India, large cap companies are usually very stable and can handle tough economic conditions far better than smaller companies. Therefore, when one invests in the best large cap mutual funds, his money gets invested in stable companies. Large cap refers to the top 100 companies by market size.
Same way mid cap mutual funds are comparatively more risky than large cap mutual funds. Here investment is made in companies with market capitalisation that can be roughly anywhere between INR 50 billion and INR 200 billion. These companies are comparatively less stable than large cap companies but also give better returns than large cap. Stocks of this company are volatile.
Small cap mutual funds have the riskiest stocks because of the high volatility. These are companies with lower market capitalisation. These are very unstable companies and will take the worst hit in case of a market downturn. Investors willing to take a lot of risk invest in this type of funds.
Large Cap funds are suitable for investors who are willing to take average amount of risk with their capital, have longer time horizon for their investments and are looking for higher returns.
Yes, you can definitely invest in Large Cap funds if your investment criteria matches with the above stated objectives and you already have investments in other small and mid cap funds or in other asset classes like fixed deposits, gold, real estate etc.
Also it is advisable to invest through SIP route as you will be able to derive the benefits of rupee cost averaging, your investment will not be skewed towards one side in the economic cycle and you can invest a part of your income every month without feeling any financial burden.
Purpose: Among equity funds, these funds carry lesser risk and hence suitable for moderate risk in the long term.
| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Reliance Large Cap Fund | Equity | Moderately High | 1.3% | 5star | ₹10,898 | |
| ICICI Prudential Bluechip Equity Fund | Equity | Moderately High | 0.5% | 5star | ₹16,539 | |
| Axis Bluechip Fund | Equity | Moderately High | 6.2% | 5star | ₹2,877 | |
| Indiabulls Blue Chip Fund | Equity | High | -1.4% | 4star | ₹384 | |
| SBI Bluechip Fund | Equity | Moderately High | -2.5% | 4star | ₹19,213 | |
| DHFL Pramerica Large Cap Fund | Equity | Moderately High | -2.8% | 3star | ₹388 | |
| merged with Reliance Focused Equity Fund | Equity | Moderately High | 9.4% | 3star | ₹1,360 | |
| Edelweiss Large Cap Fund | Equity | Moderately High | 2.3% | 3star | ₹137 | |
| Invesco India Largecap Fund | Equity | Moderately High | 0.6% | 3star | ₹163 | |
| Aditya Birla Sun Life Frontline Equity Fund | Equity | Moderately High | -2.5% | 3star | ₹20,702 | |
| Canara Robeco Bluechip Equity Fund | Equity | Moderately High | 3.8% | 3star | ₹135 | |
| Union Focussed Largecap Fund | Equity | Moderately High | -5.2% | 3star | ₹283 | |
| Kotak Bluechip Fund | Equity | Moderately High | -1.7% | 2star | ₹1,338 | |
| Essel Largecap Equity Fund | Equity | Moderately High | -4.8% | 2star | ₹297 | |
| Tata Large Cap Fund | Equity | Moderately High | -2.7% | 2star | ₹720 | |
| View All Top 10 Large Cap Mutual Funds |
Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 12.87% annualized returns in the last 3 years. In the last 1 year, it gave 1.26% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.26% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Ashwani Kumar, Sailesh Raj Bhan
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 5star |
| AUM | ₹10,898Cr |
| 1Y Returns | 1.3% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 13% annualized returns in the last 3 years. In the last 1 year, it gave 0.45% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.45% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.
Fund Manager: S Naren, Rajat Chandak
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹100 |
| Groww Rating | 5star |
| AUM | ₹16,539Cr |
| 1Y Returns | 0.5% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 12.57% annualized returns in the last 3 years. In the last 1 year, it gave 6.17% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.17% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Shreyash Devalkar
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 5star |
| AUM | ₹2,877Cr |
| 1Y Returns | 6.2% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 12.46% annualized returns in the last 3 years. In the last 1 year, it gave -1.4% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -1.4% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Sumit Bhatnagar
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹500 |
| Groww Rating | 4star |
| AUM | ₹384Cr |
| 1Y Returns | -1.4% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 10.56% annualized returns in the last 3 years. In the last 1 year, it gave -2.54% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.54% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Sohini Andani
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹19,213Cr |
| 1Y Returns | -2.5% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave -2.82% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.82% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Alok Agarwal
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹388Cr |
| 1Y Returns | -2.8% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 10.27% annualized returns in the last 3 years. In the last 1 year, it gave 9.37% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.37% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Meenakshi Dawar
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹1,360Cr |
| 1Y Returns | 9.4% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 11.31% annualized returns in the last 3 years. In the last 1 year, it gave 2.29% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.29% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Bharat Lahoti
| Launch Date | 7 Jan 2013 |
|---|---|
| Min Investment Amt | ₹1,000 |
| Groww Rating | 3star |
| AUM | ₹137Cr |
| 1Y Returns | 2.3% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 10.6% annualized returns in the last 3 years. In the last 1 year, it gave 0.6% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.6% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Vinay Paharia, Taher Badshah
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹163Cr |
| 1Y Returns | 0.6% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 11.39% annualized returns in the last 3 years. In the last 1 year, it gave -2.51% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.51% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Mahesh Patil
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹500 |
| Groww Rating | 3star |
| AUM | ₹20,702Cr |
| 1Y Returns | -2.5% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 11.98% annualized returns in the last 3 years. In the last 1 year, it gave 3.83% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.83% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Ravi Gopalakrishnan, Shridatta Bhandwaldar
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹135Cr |
| 1Y Returns | 3.8% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave -5.2% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -5.2% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Anshul Mishra
| Launch Date | 10 May 2017 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹283Cr |
| 1Y Returns | -5.2% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 9.48% annualized returns in the last 3 years. In the last 1 year, it gave -1.72% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -1.72% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Harish Krishnan
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹1,338Cr |
| 1Y Returns | -1.7% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 10.71% annualized returns in the last 3 years. In the last 1 year, it gave -4.8% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.8% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Amit Nigam
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹1,000 |
| Groww Rating | 2star |
| AUM | ₹297Cr |
| 1Y Returns | -4.8% |
Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 9.71% annualized returns in the last 3 years. In the last 1 year, it gave -2.69% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.69% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Equity mutual fund in India.
Fund Manager: Gopal Agrawal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 2star |
| AUM | ₹720Cr |
| 1Y Returns | -2.7% |
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One of the best ways to hedge against the market volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.
It is not possible for any investor to start investing in mutual funds without having completed the KYC process. Under the Prevention of Money Laundering Act (PMLA), Know Your Customer (KYC) norms have been mandated to track the legality of funds used in an investment. KYC is a one-time process which every first-time mutual fund investor needs to follow, to be able to invest in a mutual fund. KYC process on Groww can be completed in 2-3 days. KYC can be completed online with the help of E-KYC or electronic KYC. E-KYC Aadhar (based on OTP) : Investor can use online KYC facility using just the aadhar card number and PAN number, by visiting the website and following the easy process. After entering relevant details like aadhar and PAN number, investor will receive an OTP and KYC will be completed instantly. However, one can invest only up to ₹50,000 per fund house per year under this method.
Thinking of investing in an equity mutual fund, it is very crucial to decide on most appropriate market capitalization to choose the fund from – i.e. among large cap, mid cap, small cap, sectoral cap or multi-cap fund category. Market capitalization is calculated by multiplication of the number of outstanding shares company offered with the current market price of one share. Each category of market capitalization categories has its own advantages and disadvantage. In large cap fund, a large portion of investment is done in companies with large market capitalization. These companies are strong, reputable and trustworthy. Large cap companies are mature and firmly established players in the market having a strong corporate governance practices. Also, these companies are well researched and highly followed in market. Over a long term, these large cap funds might generate wealth slowly and steadily for their investors. Large cap funds have great future prospects in Indian under its current economic situation. Our Indian stock markets depends a lot on Foreign Institutional Investors (FII) flows though the domestic buyers also catching up fast. FII mostly invest their money in the stocks of large capitalization companies. With the boost in ranking of Indian in ease of doing business and latest capital infusion of ₹2.11 Lakh crore in Public Sector Banks (PSB), Indian economy is on recovery track, which will in term bring in more investment from FII in these large cap companies. So, if you are thinking of investing a lumpsum amount or for longer duration, large cap funds are just perfect choice for you. Large cap funds may give you good returns on your lumpsum investment over the long term. The companies in the large cap funds portfolio are steady compounders and pay dividend on regular basis. They are ideal for investors with low risk appetite. With large cap funds adopt a long-term perspective, be patient and remain invested to get good returns over the long term.
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