15 Best Large Cap Mutual Funds in India to Invest in April 2023

Large cap mutual funds are those equity schemes that invest a major portion of their assets under management in stocks of some of the biggest companies in the country as per total market capitalisation. The large cap companies – also referred to as blue chip companies – are often known as prominent market leaders that stand for growth, stability and sustainability. Read on as we discuss 15 best large cap mutual funds to consider investing in 2023.

15 Top Large Cap Mutual Funds in India in 2023

Here’s a list of 15 top actively-managed large cap mutual funds in India in 2023 across multiple asset management companies (AMC) based on their current 5-year annualised returns to help you make informed investment decisions.

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Performance of Best Large Cap Mutual Funds 2023

Now let’s dig deep into each of the large cap mutual funds mentioned above listed as per current five-year annualised returns: 

1. Canara Robeco Bluechip Equity Fund

Launched in 2010, the Canara Robeco Bluechip Equity Fund is currently being managed by Vishal Mishra and Shridatta Bhandwaldar with equity and cash allocation of 96% and 3.9%, respectively. The equity allocation is among eight sectors like Financials, Others, Technology, Energy, Consumer Staples, etc. Here are the fund details:

• Fund Size: ₹8,672.96 crore
• NAV: ₹45.66
• Expense Ratio: 0.48%
• Risk: Very High
• Min Investment: Rs.1,000 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 1.2%
  • Annualised 3-Year Return: 25.5%
  • Annualised 5-Year Return: 14.6%

2. Axis Bluechip Fund

One of the biggest large cap funds in the country in terms of fund size, the Axis Bluechip Fund is currently being managed by Shreyash Devalkar and Vinayak Jayanth. The fund currently has a holding allocation into equity, debt and cash of 87.4%, 12.7% and -0.1%, respectively, with over 43% allocation in the financial sector. Here are the details:

• Fund Size: ₹33,049.77 crore
• NAV: ₹46.70
• Expense Ratio: 0.59%
• Risk: Very High
• Min Investment: ₹100 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: -6.5%
  • Annualised 3-Year Return: 18.2%
  • Annualised 5-Year Return: 12.2%

3. Edelweiss Large Cap Fund

The Edelweiss Large Cap Fund recently celebrated its 10th anniversary and is currently being managed by Bhavesh Jain and Bharat Lahoti. The fund’s holding allocation for equity, debt and cash are 95.2%, 6.2% and -1.4%, respectively, with over 32% allocation in the financial sector. Here are the details:

• Fund Size: ₹399.36 crore
• NAV: ₹61.19
• Expense Ratio: 0.93%
• Risk: Very High
• Min Investment: ₹100 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 4.1%
  • Annualised 3-Year Return: 27.6%
  • Annualised 5-Year Return: 13.1%

4. Baroda BNP Paribas Large Cap Fund

Launched in 2004, the Baroda BNP Paribas Large Cap Fund is currently being managed by Jitendra Sriram and Miten Vora with an equity holding allocation of 95.8%. The fund currently has over 32% exposure in the financial sector alone. Here are the details:

• Fund Size: ₹1,347.24 crore
• NAV: ₹158.06
• Expense Ratio: 0.94%
• Risk: Very High
• Min Investment: ₹500 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 2.4%
  • Annualised 3-Year Return: 24.4%
  • Annualised 5-Year Return: 12.9%

5. IDBI India Top 100 Equity Fund

Launched in 2012, the IDBI India Top 100 Equity Fund is currently being managed by Alok Ranjan with equity and cash allocation of 98.1% and 1.9%, respectively. The equity allocation is divided into six sectors with a maximum allocation of 38.2% in the financial sector. Here are the details:

• Fund Size: ₹599.73 crore
• NAV: ₹43.48
• Expense Ratio: 1.26%
• Risk: Very High
• Min Investment: ₹500 (for SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 0.1%
  • Annualised 3-Year Return: 27.1%
  • Annualised 5-Year Return: 12.5%

6. Kotak Bluechip Fund

The Kotak Bluechip Fund will celebrate its 20th anniversary in February 2023, and is currently being managed by Harish Krishnan and Arjun Khanna. The fund has an equity and cash allocation of 98% and 2% respectively, with a maximum exposure of 27.7% in the financial sector among eight equity sectors. Here are the details:

• Fund Size: ₹5,259.24 crore
• NAV: ₹415.91
• Expense Ratio: 0.64%
• Risk: Very High
• Min Investment: ₹100 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 2.1%
  • Annualised 3-Year Return: 28%
  • Annualised 5-Year Return: 11.9%

7. ICICI Prudential Bluechip Fund

The ICICI Prudential Bluechip Fund is another ₹35,000 crore+ large cap equity fund currently being managed by Priyanka Khandelwal, Anish Tawakley and Vaibhav Dusad. The fund’s current allocation for equity, cash and debt are 93.2%, 6.4% and 0.4%, respectively, with financial sector allocation of over 29% among six other equity sectors. Here are the details:

• Fund Size: ₹34198.52 crore
• NAV: ₹73.20
• Expense Ratio: 1.06%
• Risk: Very High
• Min Investment: ₹100 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 3.6%
  • Annualised 3-Year Return: 29.4%
  • Annualised 5-Year Return: 12.6%

8. Mirae Asset Large Cap Fund

Launched in 2008, this ₹32,000 crore+ large cap fund is currently being managed by Gaurav Khandelwal and Gaurav Mishra. The fund has equity and cash holdings of 99.4% and 0.6%, respectively, with over 34% exposure in the financial sector. Here are the details:

• Fund Size: ₹32,910.58 crore
• NAV: ₹84.47
• Expense Ratio: 0.53%
• Risk: Very High
• Min Investment: ₹1,000 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 0%
  • Annualised 3-Year Return: 26.8%
  • Annualised 5-Year Return: 12.5%

9. SBI Blue Chip Fund

This ₹33,000 crore+ large cap mutual fund operated by SBI Mutual Fund is currently being managed by Sohini Andani and Mohit Jain. The fund has an equity, cash and debt allocation of 93.7%, 6.2% and 0.1%, respectively, with over 32% allocation in the financial sector and 12% in the automobile sector. Here are the details: 

• Fund Size: ₹33,987.07 crore
• NAV: ₹67.32
• Expense Ratio: 0.90%
• Risk: Very High
• Min Investment: Rs.500 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 3.4%
  • Annualised 3-Year Return: 28.5%
  • Annualised 5-Year Return: 11.5%

10. UTI Mastershare Unit Scheme

India’s first equity oriented fund launched in 1986, the UTI Mastershare Equity Scheme is currently being managed by Karthikraj Lakhmanan with over 82% allocation in equities and over 35% exposure in the financial services sector alone. Here are the details:

• Fund Size: ₹10,312.04 
• NAV: ₹199.38
• Expense Ratio: 0.97%
• Risk: Very High
• Min Investment: ₹1,000
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: -3.4%
  • Annualised 3-Year Return: 25.8%
  • Annualised 5-Year Return: 11.7%

11. Nippon India Large Cap Fund

The Nippon India Large Cap Fund, launched in 2007, is currently being managed by Sailesh Raj Bhan, Ashutosh Bhargava and Akshay Sharma. The fund has an equity to cash allocation of 98.9% to 1.1%,, with over 33% exposure in the financial sector. Here are its current details:

• Fund Size: ₹12,524.53 crore
• NAV: ₹53.99
• Expense Ratio: 1.85%
• Risk: Very High
• Min Investment: ₹100
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 6.5%
  • Annualised 3-Year Return: 30.7%
  • Annualised 5-Year Return: 11.7%

12. Invesco India Largecap Fund

The Invesco India Largecap Fund is currently being managed by Amit Nigam and Dhimant Kothari. The fund has an equity to cash allocation of 99.5% to 0.5%, with over 34% allocation in the financial sector alone. Here are the current details:

• Fund Size: ₹724.90 crore
• NAV: ₹49.05
• Expense Ratio: 0.81%
• Risk: Very High
• Min Investment: ₹100 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: -2.4%
  • Annualised 3-Year Return: 25.8.2%
  • Annualised 5-Year Return: 11.3%

13. LIC MF Large Cap Fund

Launched in 1998, the LIC MF Large Cap Fund is currently being managed by Yogesh Patil. The fund has an equity to cash allocation of 97.7% to 2.3%, with over 37% exposure in the financial sector alone. Here are the details: 

• Fund Size: ₹648.08 crore
• NAV: ₹42.72
• Expense Ratio: 1.39%
• Risk: Very High
• Min Investment: ₹1,000 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: -3.6%
  • Annualised 3-Year Return: 21.1%
  • Annualised 5-Year Return: 11.3%

14. JM Large Cap Fund

The JM Large Cap Fund turned 10 in January 2023, and is currently being managed by Satish Ramanathan, Asit Bhandarkar and Gurvinder Singh Wasan. The fund has an equity to cash allocation of 96.3% to 3.7%, with 26.8% exposure in the financial sector among a total of eight equity sectors. Here are its current details and overview

• Fund Size: ₹44.90 crore
• NAV: ₹109.68
• Expense Ratio: 1.80%
• Risk: Very High
• Min Investment: ₹500 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 1.1%
  • Annualised 3-Year Return: 19.1%
  • Annualised 5-Year Return: 10.6%

15. Tata Large Cap Fund

Another scheme that recently marked its 10th anniversary, the Tata Large Cap Fund is currently being managed by Amey Sathe, Venkat Samala and Arvindkumar Kumaresan Chetty. The fund currently has an equity to cash allocation of 94.7% to 5.3%, with over 31% allocation in the financial sector. Here are its current details.

• Fund Size: ₹1,365.71 crore
• NAV: ₹368.20
• Expense Ratio: 1.24%
• Risk: Very High
• Min Investment: ₹150 (SIP)
• Type of Fund: Equity Large Cap
• Returns:
  • Annualised 1-Year Return: 0.7%
  • Annualised 3-Year Return: 27.2%
  • Annualised 5-Year Return: 11.6%

*Disclaimer – Data for informational purposes only, taken as per AMC websites as on February 31, 2023. All details as per direct plans – growth.

Mutual Fund investments are subject to market risk. Read scheme-related documents carefully before investing.

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How Do Large Cap Mutual Funds Work?

As per Securities Exchange Board of India (SEBI) guidelines, a company with a market capitalisation of Rs.20,000 crore or more can be qualified as a large cap company, and a mutual fund scheme with at least 80% investments in large cap stocks can be categorised as a large cap fund. Fund managers of actively-managed large cap funds make active investment decisions among the basket of large cap companies based on research and analysis with the target to beat their respective benchmark indexes.

While the associated risks of large cap funds could be lower than mid cap or small cap mutual funds due to the prominent nature of the stock holdings, the market volatility risk cannot be ignored especially for short-term investment tenures. Also, the actively-managed large cap funds usually charge a higher total expense ratio than their passive counterparts like index funds and exchange-traded funds. 

As on January 25, 2023, large cap funds have given category returns of 9.85% and 12.13% for 5 years and 10 years, respectively, as against 9.75% and 16.66% for mid cap funds, 9% and 13.13% for flexi cap funds, and 10.51% and 18.40% for small cap funds. 

Features of Large Cap Mutual Funds

Here are some of the important features of large cap mutual funds:

1. Due to their high reputation, performance and reliability, large-scale companies are considered a safe haven for investors in times of market recessions.
2. Investing in large cap funds could be relatively less risky than investing in other equity fund categories like small cap and mid cap funds.
3. Even if large-scale losses happen, large cap companies have a high chance of making a recovery. 
4. Investing in large-cap funds could provide stable and high returns in the long run, depending on the fund performance.

Benefits of Investing in Large Cap Mutual Funds

Large cap mutual funds owing to the prominent nature of their holding stocks could have a higher returns potential, especially when invested for the long term. 

Other important advantages of investing in large cap mutual funds are discussed below.

1. Relatively Safer Option for First-time Investors

Large-cap stocks are usually a safer bet compared to other types of equity investments. If you are investing in mutual funds for the first time, investing in large-cap funds could be a wise choice. That said, they still carry very high levels of market risks and the actual performance also depends on the effectiveness of the decisions taken by the fund managers among other factors.

2. Less Affected by a Bear Market

The long-term track record of large-cap stocks getting steady returns adds to their advantage. They not just offer large profits during the bull markets but also offer a safer investment option in bear phases of the market. 

3. Better Appreciation and Returns

Large-cap Investments show the potential to generate attractive returns in the long run. As these investments are done in high-performing companies, the stock prices typically do not show much fluctuation. In the long run, these can show better capital appreciation for investors. 

Offers Growth along with Stability: Large-cap funds provide an opportunity for growth in investors’ portfolios. These could also offer stability in returns.

How to Invest in Best Large Cap Mutual Funds?

As per information available on the website of the Association of Mutual Funds in India (AMFI), you can invest in any of your chosen large cap mutual funds in either offline or online mode.

• For offline mode, submit a duly completed application form alongwith a cheque or bank draft at the branch office or the designated investor service centres of your chosen fund house.
• For online mode, one can choose to invest via the website or mobile app of the chosen mutual fund, or through registered aggregator websites or mobile applications.
• One may also invest with the help of a registered mutual fund distributor.
• One can also invest via online or conventional paper mode through MF Utilities Pvt. Ltd (MFU).
• Irrespective of the mode of investment, one must first complete the KYC process before starting a mutual fund investment.
• One can invest in chosen large cap funds through SIP mode or lump sum, and in direct plans or regular plans, as per the terms and conditions of the mutual fund house in accordance with SEBI guidelines.

Who Should Invest in Large Cap Mutual Funds?

Investing in the best large-cap mutual funds could be a safer bet than investing in small-cap funds, primarily due to the risk factor. Irrespective of that, you should invest keeping these factors in mind – your goal, risk tolerance and investment horizon. Here are a few key points to consider before investing in large cap mutual funds: 

1. Risk-averse Investors

Investors with lower risk tolerance may consider investing in large cap funds owing to their prominent nature of the blue chip stock holdings that are often known for their stability, growth and resilience. 

2. New Investors

Large cap funds could also be a relatively safer bet for investors who are just starting out and don’t have a lot of time and expertise to make finer investment decisions. 

3. Long-term Investors

Investors with long-term financial goals could also consider investing in top-rated large cap funds in a diversified manner preferably via the SIP mode. Simply because, the longer they stay invested, the more time their investments would get to absorb and bounce back from short-term market volatility impacts.

Factors to Consider Before Investing in Large Cap Mutual Funds

Although top-rated large cap mutual funds could be safer than other equity funds, one should consider a few essential factors before investing in them. To make an informed decision, here are some of the parameters one should look into:

1. Investment Objective and Financial Goals

Before opting for a mutual fund to invest in, an investor will want to be sure if it suits his/her financial objectives. Large cap investments are suitable for first-time investors or those looking for equity investments with relatively lower levels of risk. 

One should also be sure of how much time he/she wants to stay invested. For large-cap mutual funds, the minimum recommended investment horizon is seven years.

2. Past Performance and Consistency

It is necessary for the investors to look into the past performance of the large cap funds they are interested in. They should compare a fund’s performance with its peers before investing in one.

You should also remember that a fund performing excellently in the past might show a decline in the volatile market. However, if the fund has maintained a consistent record, there could be chances of fruitful results. That said, while historical returns could give us insights about the fund’s inherent potential, it provides no guarantee of future returns. 

3. Expense Ratio

The annual maintenance charges levied by a fund house to finance the expenses to operate a mutual fund is called the expense ratio of the fund. It’s calculated in percentage terms by dividing the total expenses by the total assets of a fund. As per SEBI, fund houses cannot charge an expense ratio of over 2.25%. 

Checking the expense ratio before finalising an investment decision is important as a high expense ratio could significantly eat into the profit margins. 

4. Exit Load

Exit Loads are charged to discourage investors from redeeming their funds before a certain period. For example, a fund house can charge an exit load of 1% for an investment period of less than 12 months. If you are investing for a shorter period, do check the exit load structure of your shortlisted scheme.

While investing, you should make sure that you do not need the money urgently. Redeeming before a certain period could lead to the exit load being deducted from your returns. 

How to Evaluate Best Large Cap Mutual Funds? 

You need to consider certain financial ratios to evaluate these mutual funds. They are as follows:

1. Sharpe Ratio

This measures the risk-adjusted return of a mutual fund scheme. You can use this formula to compute it:
Sharpe ratio = (Mean portfolio return-Risk free rate)/Standard deviation of portfolio return. 

2. Standard Deviation

By using standard deviation, you can measure the deviation of a set of data from its mean or average. 

3. Beta

This indicates a fund’s changes to the correlated market movements.

4. R-squared

It determines how close a fund’s returns are to that of the benchmark index. 

5. Alpha

This measures a fund manager’s ability to generate profits when the benchmark is at a profit. 

Tax Implications on Large Cap Funds

The tax implication on large-cap funds depends on the holding period. The tax implications are stated below:

• When redeemed before the span of 12 months, profits will be classed as short-term capital gains (STCG) and taxed at a 15% rate.
• When the holding period is 12 months or more and the capital gain is up to Rs.1 lakh, the gains will be exempt from tax.
• If the holding period is 12 months or more and the gains are over Rs.1 lakh, long-term capital gains (LTCG) tax will apply on the gains above Rs.1 lakh at a 10% rate without indexation.

Final Word

Large cap mutual funds are extremely popular because they invest in some of the leading companies in the country that often stand for growth, stability and resilience. They could generate high returns, especially when invested for the long term, depending on the fund performance. That said, they still carry substantial amounts of risks being market-linked instruments. Choosing the best large cap mutual funds 2023 should involve alignment with one’s returns expectations and risk tolerance, and one should not hesitate to consult a certified investment advisor to stategise the desired investment approach. 

If you want to invest in company stocks without human bias, invest in Navi Mutual Fund’s index fund schemes. Navi offers a wide range of low-cost funds across sectors and geographies, including Nifty 50, Nifty Next 50, NASDAQ 100, US Total Stock Market etc.

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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.

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