Best Large Cap Mutual Funds:9 Large Cap Funds to Invest in 2024

Best Large Cap Mutual Funds to Invest in India in 2024

Large Cap Funds are those mutual funds that invest a larger portion of their funds in equity shares of large-cap companies.

The Securities & Exchange Board of India or SEBI categorizes companies whose market capitalization is among the top 100 in the market as Large Cap. Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.

Why Invest in Large Cap Mutual Funds?  

Here are some reasons why investing in large-cap mutual funds in india can be a wise decision:

⇛ Stability: Large-cap mutual funds invest in stocks of large, well-established companies, which are generally considered to be stable and have a proven track record. These companies are usually leaders in their respective industries and are less susceptible to market volatility and economic downturns.

⇛ Lower Risk: One of the mutual fund basics is that you should always seek to minimize risk. Large-cap mutual funds are considered less risky than mid-cap or small-cap funds, as large companies have a higher degree of financial stability, and their stocks are usually less volatile. This makes them a good option for investors who are looking for a relatively safe investment option.

⇛ Higher Liquidity: Large-cap stocks are more liquid than mid-cap and small-cap stocks, which means that they are easier to buy and sell. This higher liquidity can be beneficial for investors who want to sell their investments quickly in case of any emergencies.

⇛ Potential for Dividends: Many large-cap companies pay dividends to their shareholders, which can provide a regular source of income for investors. Additionally, some large-cap equity mutual funds also distribute dividends to their investors, making them a good option for investors who are looking for regular income.

⇛ Long-Term Investment: Large-cap or blue-chip funds are a good option for long-term investors who are looking to grow their wealth steadily over time. While they may not provide high returns in the short term, they have the potential to generate significant returns over a longer period.

⇛ Stability During Economic Downturns: Large-cap companies are usually well-established and have a strong financial position, which allows them to weather economic downturns better than smaller companies. By investing in large-cap mutual funds, investors can benefit from the stability of these companies during economic recessions or market corrections.

⇛ Low Expense Ratio: Large-cap mutual funds usually have a lower expense ratio compared to mid-cap and small-cap funds. This is because large-cap companies are more widely researched, making it easier for fund managers to make investment decisions.

Top Large Cap Mutual Funds

The following are the top-rated large-cap funds as per ZFunds scoring for the quarter ended 30th June 2020. The funds with the highest ZF Score (refer: methodology here) are ranked at the top. 

*Returns as of 22 December 2020 and AUM as of 30 November 2020.

Watch the Top 3 Large Cap Mutual Fund Video Here  : 

Video: https://www.youtube.com/embed/z02y3d0lJVo?si=lYBEM7FAbeIihMKO

Let's have a closer look

1. ICICI Prudential Bluechip Fund

Investors seeking the best large cap mutual funds to invest in should consider the ICICI Prudential Bluechip Fund. This fund has consistently showcased strong performance, ranking among the top performers. ZFunds Ratings highlight its excellent scores in crucial parameters like volatility and capture ratio.

• Consistent Performance: Despite occasional fluctuations, this fund outperforms its benchmark and category average returns over extended periods.
• Ideal for Long-Term: With its ability to beat benchmarks, ICICI Prudential Bluechip Fund aligns well with long-term investment goals.
• Diversification: Notably, the fund also dedicates around 6.42% to the mid-cap category, enhancing portfolio diversification.

Investors can anticipate growth, with ₹10,000 invested in December 2015 now valued at approximately ₹17,000. Moreover, a ₹1,000 monthly SIP since January 2016 would have grown to around ₹80,000.

2. Axis Bluechip Fund

For investors prioritizing consistent performance and stability, the Axis Bluechip Fund stands out as one of the best large cap mutual funds available. It maintains a strong track record as one of the most reliable performers in the large-cap space. Its entire corpus is strategically allocated to large-cap stocks, solidifying its focus.

• Consistency and Reliability: With a history of consistent outperformance, the Axis Bluechip Fund is ideal for stability-focused investors.
• Exemplary ZFunds Ratings: This fund ranks highest in consistency, capture ratio, and risk-adjusted score, promising robust performance.
• Long-Term Value: Despite higher valuations, the fund's anticipated lower volatility makes it a valuable choice.

Investors would have witnessed growth, with ₹10,000 invested in December 2015 now valued at about ₹19,000. Further, a ₹1,000 monthly SIP since January 2016 would have grown to approximately ₹91,100.

3. Nippon India Large Cap Fund

Investors in search of the best large cap mutual fund to invest in should consider the Nippon India Large Cap Fund. Its high valuation score according to ZFunds Ratings, along with commendable performance in concentration metrics, positions it among the top 10 large-cap funds.

• Strong Valuations: Nippon India Large Cap Fund gains prominence due to its robust valuation score.
• Diversified Exposure: Notably, the fund strategically allocates around 14% to mid-cap and 6% to small-cap stocks.
• Promising Outlook: With a strong performance history and potential for growth, this fund holds promise for the future.

Investors would have witnessed growth, with ₹10,000 invested in December 2015 now valued at approximately ₹15,100. Additionally, a ₹1,000 monthly SIP since January 2016 would have grown to around ₹74,900.

4. Mirae Asset Large Cap Fund

As investors seek the best large cap mutual funds for high returns, the Mirae Asset Large Cap Fund shines brightly. Its history of delivering impressive returns, coupled with strong ZFunds Ratings, positions it as a top contender.

• Historical Returns: The Mirae Asset Large Cap Fund has consistently delivered high returns.
• Exemplary Ratings: It excels in parameters like capture ratio, risk-adjusted score, and consistency as per ZFunds Ratings.
• Balanced Portfolio: While primarily focused on large-cap stocks, its strategic exposure to mid-cap and small-cap stocks enhances diversification.

Investors can anticipate growth, with ₹10,000 invested in December 2015 now valued at approximately ₹18,300. Furthermore, a ₹1,000 monthly SIP since January 2016 would have grown to around ₹83,400.

5. HDFC Top 100 Fund

The HDFC Top 100 Fund secures its place among the best large cap mutual funds with its consistent returns over the long term. Its impressive ZFunds Ratings in key metrics make it a reliable choice for investors.

• Consistent Returns: Over extended periods, the HDFC Top 100 Fund has consistently delivered favorable returns.
• Comprehensive Metrics: High ZFunds Ratings in valuation, concentration, and volatility metrics underscore its performance.
• Strategic Allocation: The fund allocates around 9% to mid-cap and 1% to small-cap companies, enhancing diversification.

Investors would have experienced growth, with ₹10,000 invested in December 2015 now valued at around ₹15,600. Further, a ₹1,000 monthly SIP since January 2016 would have grown to approximately ₹74,600.

6. Franklin India Bluechip Fund

For investors in pursuit of the best large cap mutual funds, the Franklin India Bluechip Fund holds significant appeal. Renowned for its consistent performance, this fund has established its position as a reliable choice in the large-cap category.

• Consistency in Performance: The Franklin India Bluechip Fund has consistently delivered commendable returns, bolstering investor confidence.
• Diversified Portfolio: With an aim to achieve growth through a diversified portfolio, this fund offers exposure to a mix of blue-chip stocks.
• Long-Term Value: Investors looking for stable growth over the long term will find this fund aligning well with their objectives.

Growth potential is evident, with ₹10,000 invested in December 2015 appreciating to around ₹18,000. Furthermore, a ₹1,000 monthly SIP since January 2016 would have grown to approximately ₹85,300.

7. UTI Mastershare Unit Fund

The UTI Mastershare Unit Fund shines as a compelling option among the best large cap mutual funds. With its impressive track record, it has consistently delivered returns that appeal to both seasoned and novice investors.

• Proven Performance: The UTI Mastershare Unit Fund's history of consistent returns underscores its reliability.
• Focused Approach: The fund primarily invests in large-cap stocks, offering a focused approach to potential growth.
• Investor-Friendly: This fund's performance and structure make it suitable for investors seeking stability and growth over the long term.

Investors would have witnessed growth, with ₹10,000 invested in December 2015 now valued at approximately ₹20,000. Additionally, a ₹1,000 monthly SIP since January 2016 would have grown to around ₹94,800.

8. Aditya Birla Sun Life Frontline Equity Fund

Investors eyeing the best large cap mutual funds should consider the Aditya Birla Sun Life Frontline Equity Fund. Renowned for its steady performance, this fund presents a well-balanced option for capital appreciation.

• Steady Growth: The Aditya Birla Sun Life Frontline Equity Fund has consistently provided steady growth over time.
• Strategic Investments: With a blend of large-cap stocks, the fund maintains a strategic allocation for potential gains.
• Long-Term Focus: This fund aligns with investors seeking gradual and consistent growth over the long term.

Investors can anticipate growth, with ₹10,000 invested in December 2015 now valued at around ₹18,600. Furthermore, a ₹1,000 monthly SIP since January 2016 would have grown to approximately ₹89,800.

9. SBI Bluechip Fund

The SBI Bluechip Fund stands tall among the best large cap mutual funds, offering investors a balanced and dependable avenue for growth. Its performance track record positions it as a strong contender in the large-cap category.

• Balanced Growth: The SBI Bluechip Fund's performance history underscores balanced and consistent growth.
• Favorable Metrics: The fund showcases favorable metrics, demonstrating its reliability in terms of returns.
• Investor Confidence: Investors seeking stability and potential growth will find this fund aligning with their aspirations.

Investors would have experienced growth, with ₹10,000 invested in December 2015 now valued at around ₹19,200. Further, a ₹1,000 monthly SIP since January 2016 would have grown to approximately ₹90,500.

10. Kotak Bluechip Fund

The Kotak Bluechip Fund emerges as a compelling choice among the best large-cap mutual funds, offering a strong combination of consistent performance and potential for growth.

• Consistent Performance: The Kotak Bluechip Fund has consistently delivered strong performance, making it a reliable investment option.
• Diverse Holdings: With a portfolio comprising of leading blue-chip stocks, this fund offers diversification and potential for gains.
• Long-Term Growth: Investors aiming for steady growth over the long term will find this fund well-aligned with their financial goals.

Investors would have witnessed growth, with ₹10,000 invested in December 2015 now valued at approximately ₹18,500. Further, a ₹1,000 monthly SIP since January 2016 would have grown to around ₹89,200.

How do Large Cap Mutual Funds Work?

Large Cap funds primarily invest in India’s top 100 companies as per market capitalization. This list includes some of the most renowned and celebrated conglomerates in the country, such as Reliance, HDFC, ITC, Hindustan Unilever, etc. The norms set by the regulatory authorities require large-cap mutual fund schemes to allocate at least 80 percent of their funds to the top 100 companies in India. Large-cap companies boast excellent past performance and offer less volatility as compared to mid and small-cap companies. Thus, one may rest assured about gaining good returns from their medium to long-term investments in large-cap mutual fund companies or large-cap mutual fund schemes.  

Taxation on Large Cap Mutual Fund Investments  

Returns from large-cap mutual fund investment schemes are treated for tax as returns from any other equity assets. Thus, all gains earned from large-cap mutual fund investments held for a period of less than one year or 365 days are classified as STCG or short-term capital gains and are taxed at 15 percent. Whereas, all gains from investments held by an investor for a period of more than a year or 365 days are classified as LTCG or long-term capital gains. As per the Indian Income Tax, there is no income tax on long-term capital gains of up to INR one lakh. However, any surplus gains are taxed at 10 percent without indexation benefit.  

Why Choose ZFunds for your Mutual Fund Investments?

ZFunds’ experts ensure Sahi and Asaan mutual fund investing generates the highest returns and helps you create wealth in the long term. Here is what sets us apart from other mutual fund investing platforms in India:  

⇛ A Dedicated Research Team – Our team of investment experts helps you pick the right mutual fund schemes.  

⇛ Certified & Trained Experts – All our experts are certified and go through intensive training to offer you the best investment advice for maximum returns.  

⇛ Hassle-free Investing for New Investors – Our paperless KYC and SIP registration makes mutual fund investing more convenient than ever before.  

How to Invest in the Best Large Cap Mutual Funds in India on ZFunds?

⇛ Download and Install ZFunds App:

• Visit your device's app store and download the ZFunds app.
• Install the best mutual fund app and launch it on your device.

⇛ Create an Account:

• Sign up by providing your personal details, including name, email, and phone number.
• Verify your email and phone number through the OTP (One-Time Password) sent to you.

⇛ Complete KYC Process:

• Follow the in-app instructions to complete the KYC (Know Your Customer) process.
• Upload required documents, such as PAN card, Aadhaar card, and a passport-size photo.

⇛ Log into Your Account:

• Use your registered email/phone and password to log into your ZFunds account.

⇛ Navigate to 'Invest' Section:

• Find the 'Invest' or 'Invest Now' section on the app's homepage.

⇛ Select 'Large Cap' Category:

• Browse through different fund categories and select 'Large Cap' mutual funds.

⇛ Explore Top Performers:

• Check the list of top-performing large-cap mutual funds available on ZFunds.
• Consider factors like historical performance, fund manager expertise, and expense ratios.

⇛ Read Fund Details:

• Click on a specific fund to access detailed information.
• Review the fund's investment objectives, holdings, and performance over different time frames.

⇛ Set Investment Amount:

• Determine the amount you want to invest in the selected large-cap mutual fund.

⇛ Choose SIP or Lump Sum:

• Decide whether you want to invest through SIP (Systematic Investment Plan) or lump sum.

⇛ Set SIP Frequency (if applicable):

• If opting for SIP, choose the frequency of investment (daily, monthly, quarterly).

⇛ Review and Confirm:

• Review your investment details, including amount, fund name, and investment type.
• Ensure all information is accurate before proceeding.

⇛ Make Payment:

• Choose your preferred payment method (net banking, UPI, debit/credit card).
• Follow the payment process to complete your investment.

⇛ Receive Confirmation:

• Once the payment is successful, you'll receive a confirmation of your investment.

⇛ Monitor Your Investment:

• Log in to your ZFunds account to track the performance of your chosen large-cap mutual fund.
• Stay updated on fund news and any changes in your investment.

⇛ Explore Additional Resources:

• Use the ZFunds app to access educational content, market insights, and investment tips.

⇛ Consult Financial Advisors:

• Consider seeking advice from financial experts to align your investments with your goals and risk tolerance.

Investing in large-cap mutual funds through the ZFunds app, the best mutual fund app, offers a convenient and user-friendly way to access the potential benefits of these funds. Make sure to stay informed about market trends and periodically review your investment strategy to ensure it remains aligned with your financial objectives.

Frequently asked questions (FAQs) about the best large cap mutual funds

1. What are large-cap mutual funds, and why should I consider investing in them?

Large-cap mutual funds primarily invest in well-established, financially stable companies with larger market capitalizations. These companies are known for their stability and growth potential. Investing in large cap funds can offer a balance between potential growth and lower risk compared to mid and small cap funds. They are suitable for investors seeking stable returns over the long term.

2. How do I identify the best large-cap mutual funds for my investment goals?

Look for funds with consistent historical performance over various market cycles. Consider funds that consistently outperform their benchmark indices and have a track record of delivering favorable returns. Also, assess key parameters like expense ratios, fund manager experience, and the fund's investment philosophy. Ratings from trusted sources like ZFunds can provide valuable insights.

3. What is the significance of fund ratings, and how do they help me in selecting the right fund?

Fund ratings provide an objective evaluation of mutual funds based on various performance and risk metrics. Ratings help you gauge a fund's historical performance, risk-adjusted returns, and consistency. Funds with higher ratings are often indicative of strong management practices and potential for generating favorable returns.

4. What role does diversification play in large-cap mutual funds?

Diversification is a key strategy in investing that helps reduce risk by spreading investments across various sectors and industries. While large cap funds primarily invest in established companies, diversification within the large cap segment adds an extra layer of risk mitigation. This approach ensures that the fund is not overly concentrated in a few stocks, reducing the impact of poor performance by any single stock.

5. How should I evaluate historical returns and past performance when considering large-cap mutual funds?

While historical returns provide insights into a fund's performance, it's important to assess them over various timeframes, including both short and long-term. Look for consistent returns that outperform the benchmark and category average. Remember that past performance is not a guarantee of future results, so consider other factors like market conditions and fund management expertise.

6. Which is the best large-cap fund?

ICICI Prudential bluechip fund is the best large-cap fund. 

7. Which is better large-cap or mid-cap fund?

The choice between large-cap and mid-cap funds depends on your risk tolerance and investment goals.

8. Which fund has the highest return?

Sundaram Large Cap Fund - Direct Plan-Growth has the highest annual return. 

9. Which type of MF gives the highest return?

Growth Mutual fund gives the highest return.

Also Read: 

Axis Small Cap Fund

Axis Bluechip Fund Regular Plan

MFD Karein Shuru

Mirae Asset Large Cap Mutual Fund

Best Multi Cap Mutual Funds to Invest in India
Best Small Cap Mutual Funds to Invest in India
Best ELSS Mutual Funds to Invest in India
How to Become a Mutual Fund Advisor