Large Cap Funds

In large-cap fund is a fund where minimum 80% of the corpus is invested in well-established companies with large market capitalization. These funds are safer and have low volatility. Stocks, where these funds invest in are called large cap stocks. Examples of large cap stocks are HDFC, HDFC Bank, TCS, reliance Industries, etc. Well established large corporations that may be part of the large cap index (BSE-30, NIFTY-50, BSE TOP 100 etc) comprise large cap universe. Large cap stocks also have track record of consistent growth and a dividend payout.

Large cap funds usually provide stable returns and known to provide stability to a portfolio. As per a recent SEBI circular. large cap funds need to invest a minimum of 80% of the corpus in large cap stocks. And large cap stocks are top 100 stocks as per market capitalization.

Following are the examples of a few large cap funds:

  • Franklin India bluechip fund
  • Birla sun life frontline equity fund
  • ICICI Prudential focused bluechip fund
  • Mirae Asset India equity fund

Large-cap funds are ideal for investors who are not savvy with market nuances but still would like to gain from the stock market. However, first time investors need to be cautious even with large cap funds. Ideally, they may try investing through SIP and as they get used to equity investing they may invest lump sum.

Top 10 Large Cap Funds

Scheme (Returns as on Jul 19, 2018) 6 Months 1 Year 2 Years 3 Years 5 Years
SBI Blue Chip Fund (G) -4.7% 3.9% 10.5% 8.5% 17.7%
L&T India Large Cap Fund (G) -2.3% 5.5% 19.5% 13.6% 31.9%
Motilal Oswal Focused 25 - (G) -1.1% 7.2% 15.9% 8.7% 17.5%
BNP Paribas Large Cap Fund (G) -5.0% 2.8% 9.7% 5.7% 15.9%
Franklin India Bluechip (G) -6.3% 1.0% 8.0% 6.7% 14.1%
Invesco India Dynamic Equity (G) -0.9% 7.3% 13.4% 8.2% 15.3%
UTI Core Equity Fund (G) -10.1% - 9.2% 5.6% 13.8%
Tata Large Cap Fund - Regular Plan (G) -5.7% 3.1% 9.9% 6.3% 13.6%
IDFC Focused Equity - Regular (G) -6.0% 6.8% 20.0% 11.0% 14.8%
Kotak Standard Multicap Fund (G) -2.3% 6.0% 15.4% 11.7% 21.1%