Best Large Cap Mutual Funds to invest in 2022

Best Large Cap Mutual Funds to Invest in 2022

What is a Large Cap Mutual Funds?

Large Cap Mutual Funds are Equity Mutual funds that invest in Large Cap Stocks (companies) and other securities like bonds, fixed income assets, etc. Large Cap companies are categorized as India’s leading 100 companies as per Market Capitalization.

These 100 companies will be stable in business, revenue, profit, and market capital of more than 20,000 Crores on average. So, these Large-cap companies provide a consistent share price (capital gain) return.

Many investors tend to choose Large-cap stocks over mid or small-cap companies. At the same time, indices like SENSEX, Nifty 50, Nifty Next 50, Nifty 100 hold these top 100 stocks. It provides a 12-16% nominal return, depending on the performance. Still, if you invest in Large Cap Mutual funds, then you should at least (minimum) hold your investments for 5 years.

Here is the complete listing of the 10 best Large Cap Mutual Funds in India in 2022. We draft this list post multiple analyses on the following parameters,

  • AUM (Asset Under Management)
  • 5 Years Performance.
  • Volatility against Index
  • Expense Ratio
  • Percentage of equity holdings.

What are the Best Large Cap Mutual Funds in India 2022

Axis Bluechip Fund Direct plan Growth

One of our top picks from our analysis, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.48%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 32322.5 Crores
  • Expense Ratio – 0.51%
  • 5 Years Performance – 14..65%
  • Percentage of Equity Holding – 86.43%
  • Risk vs Category – Low

Axis Bluechip Fund Direct plan growth is managed by the most experienced fund managers Shreyash Devalkar (since Nov 2016) and Hitesh Das (since Nov 2020). This fund has an asset allocation of Equity (95.9%), Debt (4.5%), and Cash (-0.4%).

The equity portfolio consists of various sectors like Financial (37.8%), Technology (21.6%), Services (10.5%), Healthcare (6.5%), Construction (6.1%), Others (17.65).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 17.59 vs 21.45 (Index)
  • Sharp Ratio – 0.89 vs 0.69 (Index)
  • Alpha – 4.22 vs 7.91 (Index)
  • Beta – 0.78 vs 1 (Index)
  • R2 – 89.37 vs 46.23 (Index)

checkout our article for a better understanding of the Risk ratios of a mutual fund.

Other Details of the Fund:

  • P/E – 38.61
  • P/B – 5.22
  • Top 5 Equities hold 43% of AUM
  • Top 20 Equities hold 85% of AUM
  • Exit Load – 1 %if redeemed within 1 year
  • Stamp Duty – 0.005%
Pros
  • 5 Years Performance is highest among the category
  • 16.49% returns since Inception
  • Expense Ratio is 0.48%, which is relatively low.
  • Low risk compared to the Category
Cons
  • Last 1 Year returns was low compared to category average

Mirae Asset Large Cap Fund Direct Plan Growth

Mirae Asset Large Cap Fund Direct Plan-Growth is another top pick as the best large cap mutual funds, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 17.71%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 31297 Crores
  • Expense Ratio – 0.54%
  • 5 Years Performance – 16.3%
  • Percentage of Equity Holding – 98.7%
  • Risk vs Category – Moderate Risk

Mirae Asset Large Cap Fund Direct Plan-Growth is managed by the most experienced fund managers Gaurav Khandelwal (since Oct 2021) and Gaurav Misra (Jan 2019). This fund has an asset allocation of Equity (98.7%), and Cash (1.3%).

The equity portfolio consists of various sectors like Financial (32.7%), Technology (17.4%), Energy (8.6%), Healthcare (7.5%), Construction (6.5%), Automobile (5.3%),   Engineering (55), Others (22.1%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 20.98 vs 21.45 (Index)
  • Sharp Ratio – 0.73 vs 0.69 (Index)
  • Alpha – 0.96 vs 7.91 (Index)
  • Beta – 0.97 vs 1 (Index)
  • R2 – 98.79 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 25.62
  • P/B – 3.60
  • Top 5 Equities hold 38% of AUM
  • Top 20 Equities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
Pros
  • 5 Years Performance is higher than category average.
  • 17.71% returns since Inception, highest among the top large cap mutual funds in India
  • Expense Ratio is 0.54%, which is comparatively low.
Cons
  • Last 1 Year returns were low compared to the category average.
  • Moderate Risk compared to Category

SBI Bluechip Fund Direct Growth

SBI Bluechip Fund Direct growth is one of the top picks from our analysis, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.88%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 31570 Crores
  • Expense Ratio – 0.95%
  • 5 Years Performance – 14.25%
  • Percentage of Equity Holding – 98%
  • Risk vs Category – Moderately High Risk

SBI Bluechip Fund Direct Growth is managed by the most experienced fund manager Sohini Andani (since Jan 2013). This fund has an asset allocation of Equity (98%), and Cash (2%).

The equity portfolio consists of various sectors like Financial (30.6%), Technology (12.8%), Construction (11.5%), Automobile (11.2%),  Healthcare (7.5%), Energy (7%), Engineering (5%), Others (14.5%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 21.92 vs 21.45 (Index)
  • Sharp Ratio – 0.72 vs 0.69 (Index)
  • Alpha – 0.91 vs 7.91 (Index)
  • Beta – 1.01 vs 1 (Index)
  • R2 – 97.34 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 24.8
  • P/B – 3.53
  • Top 5 Equities hold 31% of AUM
  • Top 20 Equities hold 68% of AUM
  • Exit Load – 1 %if redeemed within 1 year
  • Stamp Duty – 0.005%
Pros
  • 5 Years Performance is higher than category average.
  • 15.88% returns since Inception
  • Comparatively Low Expense Ratio is 0.95%
Cons
  • Last 1 Year returns were low compared to the category average.
  • Moderately High Risk compared to Category

ICICI Prudential Bluechip Fund Direct Plan Growth

This fund is one of the best large cap mutual funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.65%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 31272 Crores
  • Expense Ratio – 1.08%
  • 5 Years Performance – 15.29%
  • Percentage of Equity Holding – 98%
  • Risk vs Category – Moderate Risk

ICICI Bluechip Fund Direct Growth is managed by multiple fund managers Rajat Chandak (Since Jul 2017), Priyanka Khandelwal (Since Jun 2017), Anish Tawakley (since Sep 2018), Vaibhav Dusad (since Jan 2021). This fund has an asset allocation of Equity (92.9%), Debt (0.3%), and Cash (6.8%).

The equity portfolio consists of various sectors like Financial (36%), Technology (14.2%), Energy (11.3%), Construction (8.7%), Automobile (8%),  Healthcare (6%),  Commuication (5.3%), Others (10.6%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 20.63 vs 21.45 (Index)
  • Sharp Ratio – 0.74 vs 0.69 (Index)
  • Alpha – 1.25 vs 7.91 (Index)
  • Beta – 0.95 vs 1 (Index)
  • R2 – 98.24 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 23.19
  • P/B – 2.89
  • Top 5 Equities hold 36% of AUM
  • Top 20 Equities hold 77% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%

Check out our article on the comparison between the Axis Bluechip fund and ICICI Bluechip fund.

Pros
  • 5 Years Performance is higher than category average.
  • 15.65% returns since Inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • The expense ratio is 1.08%, which is relatively high
  • Moderate Risk compared to Category

Aditya Birla Sun Life Frontline Equity Fund - Direct Plan - Growth

Aditya Birla Frontline Equity Fund Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.04%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 21790.69 Crores
  • Expense Ratio – 1.05%
  • 5 Years Performance – 13.54%
  • Percentage of Equity Holding – 99.1%
  • Risk vs Category – Moderately High Risk

Aditya Birla Frontline Fund Direct Growth is managed by a highly experienced fund manager Mahesh Patil (Since Jan 2013). This fund has an asset allocation of Equity (99.1%), and Cash (0.9%).

The equity portfolio consists of various sectors like Financial (35.2%), Technology (16%), Energy (8.9%), Construction (8.2%), FMCG (6.7%),  Healthcare (5.4%),  Commuication (5.4%), Others (14.2%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 21.58 vs 21.45 (Index)
  • Sharp Ratio – 0.67 vs 0.69 (Index)
  • Alpha – (-)0.31 vs 7.91 (Index)
  • Beta – 1.00 vs 1 (Index)
  • R2 – 98.94 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 24.75
  • P/B – 3.21
  • Top 5 Equities hold 34% of AUM
  • Top 20 Equities hold 67% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 100 per month.
Pros
  • 5 Years Performance is higher than category average.
  • 15.04% returns since Inception
  • The Fund is managed by same fund manager since inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • The expense ratio is 1.05%, which is relatively high
  • Moderately High Risk compared to Category
  • Alpha is in negative

Canara Robeco Bluechip Equity Fund - Direct Plan - Growth

Canara Robeco Bluechip Equity Fund Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.55%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 6020.47 Crores
  • Expense Ratio – 0.38%
  • 5 Years Performance – 18.13%
  • Percentage of Equity Holding – 93.8%
  • Risk vs Category – Low Risk

Canara Robeco Bluechip Equity Fund Direct Growth is managed by highly experienced fund managers Vishal Mishra (Since Jun 2021), and Shridatta Bhandwaldar (Since Jul 2016). This fund has an asset allocation of Equity (93.8%), and Cash (6.2%).

The equity portfolio consists of various sectors like Financial (34%), Technology (18.3%), Energy (9.1%),  Construction (8.3%), Healthcare (6.8%), Automobile (5.8%), Others (17.8%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 18.66 vs 21.45 (Index)
  • Sharp Ratio – 0.96 vs 0.69 (Index)
  • Alpha – 5.17 vs 7.91 (Index)
  • Beta – 0.86 vs 1 (Index)
  • R2 – 97.47 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 32.44
  • P/B – 3.96
  • Top 5 Equities hold 35% of AUM
  • Top 20 Equities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 1000 per month.
Pros
  • 5 Years Performance is highest among the category
  • 15.55% returns since Inception
  • Expense Ratio is 0.38%, which is lowest among the category.
  • Low risk compared to the Category
Cons
  • Last 1 Year returns was low compared to category average

Nippon India Large Cap Fund - Direct Plan - Growth

Nippon India Large Cap Fund Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 15.3%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 11168.63 Crores
  • Expense Ratio – 1.07%
  • 5 Years Performance – 14.51%
  • Percentage of Equity Holding – 99.3%
  • Risk vs Category – High Risk

Nippon India Large Cap Fund Direct Growth is managed by highly experienced fund managers Sailesh Raj Bhan Jain (Since Jan 2013), and Ashutosh Bhargava (Since Sep 2021). This fund has an asset allocation of Equity (99.3%), and Cash (0.7%).

The equity portfolio consists of various sectors like Financial (33.4%), Technology (15.6%), Energy (9.2%),  Services (7.2%), FMCG (7.1%), Communication (6.5%), Engineering (6.2%), Others (14.8%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 24.66 vs 21.45 (Index)
  • Sharp Ratio – 0.56 vs 0.69 (Index)
  • Alpha – (-)2.61 vs 7.91 (Index)
  • Beta – 1.11 vs 1 (Index)
  • R2 – 93.51 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 22.91
  • P/B – 2.89
  • Top 5 Equities hold 32% of AUM
  • Top 20 Equities hold 77% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 100 per month.
Pros
  • 5 Years returns is higher than category average.
  • 15.3% returns since Inception
  • The Fund is managed by same fund manager since inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • High Risk compared to Category
  • The expense ratio is 1.07%, which is comparatively high
  • Alpha is in negative

UTI Mastershare Unit Scheme - Direct Plan - Growth

UTI Mastershare Unit Scheme Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 14.71%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 9659.33 Crores
  • Expense Ratio – 1.09%
  • 5 Years Performance – 15.07%
  • Percentage of Equity Holding – 98.9%
  • Risk vs Category – Moderately Low Risk

UTI Mastershare Unit Scheme Direct Growth is managed by a highly experienced fund manager Swati Anil Kulkarni (Since Jan 2013). This fund has an asset allocation of Equity (98.9%), and Cash (1.1%).

The equity portfolio consists of various sectors like Financial (27.1%),  Technology (17.5%),  Healthcare (8.4%), Automobile (8.3%), Services (7.4%), Others (31.3%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 20.07 vs 21.45 (Index)
  • Sharp Ratio – 0.8 vs 0.69 (Index)
  • Alpha – 2.37 vs 7.91 (Index)
  • Beta – 0.93 vs 1 (Index)
  • R2 – 98.51 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 33.56
  • P/B – 4.54
  • Top 5 Equities hold 32% of AUM
  • Top 20 Equities hold 68% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 100 per month.
Pros
  • 5 Years returns is higher than category average.
  • 14.71% returns since Inception
  • Moderately Low Risk Fund
  • The Fund is managed by same fund manager since inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • High Risk compared to Category
  • The expense ratio is 1.09%, which is relatively high.

HDFC Top 100 Fund - Direct Plan - Growth

HDFC Top 100 Fund Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 13.48%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 21405.01 Crores
  • Expense Ratio – 1.18%
  • 5 Years Performance – 12.94%
  • Percentage of Equity Holding – 99.2%
  • Risk vs Category – High Risk

HDFC Top 100 Fund Direct Growth is managed by highly experienced fund managers Prashant Jain (Since Jan 2013), and Sankalp Baid (Since Jan 2021). This fund has an asset allocation of Equity (99.2%), and Cash (0.8%).

The equity portfolio consists of various sectors like Financial (36.3%), Energy (23.5%), Technology (14.5%),  Healthcare (7.1%), Construction (5.7%), Others (14.5%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 23.03 vs 21.45 (Index)
  • Sharp Ratio – 0.53 vs 0.69 (Index)
  • Alpha – (-)3.12 vs 7.91 (Index)
  • Beta – 1.04 vs 1 (Index)
  • R2 – 94.10 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 14.37
  • P/B – 2.19
  • Top 5 Equities hold 37% of AUM
  • Top 20 Equities hold 79% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 300 per month.
Pros
  • 5 Years returns is higher than category average.
  • 12.94% returns since Inception
  • The Fund is managed by same fund manager since inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • High Risk compared to Category
  • The expense ratio is 1.18%, which is highest among the best Large Cap Mutual Funds
  • Alpha is in negative

Franklin India Bluechip Fund - Direct - Growth

Franklin India Bluechip Fund Direct-Growth is one of the top pick funds in India to invest in 2022, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has yielded a CAGR of 13.25%. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best large cap mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 6633.15 Crores
  • Expense Ratio – 1.18%
  • 5 Years Performance – 12.56%
  • Percentage of Equity Holding – 90.4%
  • Risk vs Category – Moderately High Risk

Franklin India Bluechip Fund Direct-Growth is managed by highly experienced fund managers Anand Radhakrishnan (Since Jan 2013), R Janakiraman (Since Oct 2021), Venkatesh Sanjeev (Since Oct 2021), and Sandeep Manam (Since Oct 2021). This fund has an asset allocation of Equity (90.4%), and Cash (9.6%).

The equity portfolio consists of various sectors like Financial (35.7%),  Technology (18.9%), Construction (11.2%), FMCG (7.4%), Healthcare (6.5%), Automobile (6.4%), Services (5.3%), Others (8.7%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 22.22 vs 21.45 (Index)
  • Sharp Ratio – 0.65 vs 0.69 (Index)
  • Alpha – (-)0.22 vs 7.91 (Index)
  • Beta – 0.99 vs 1 (Index)
  • R2 – 90.85 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 17.57
  • P/B – 2.32
  • Top 5 Equities hold 33% of AUM
  • Top 20 Equities hold 79% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP (Systematic Investment Plan) – Rs. 500 per month.
Pros
  • 5 Years returns is higher than category average.
  • 12.94% returns since Inception
  • The Fund is managed by same fund manager since inception
Cons
  • Last 1 Year returns were low compared to the category average.
  • High Risk compared to Category
  • The expense ratio is 1.18%, which is highest among the best Large Cap Mutual Funds
  • Alpha is in negative

Who Should Invest in Large Cap Mutual Funds?

As the investments are made over top companies of India, which are stable and well-established. These companies produce a standard rate of return in terms of revenue, profit, dividend to shareholders. So, investing in these companies produce a stable return to investors.

Large cap mutual funds are suitable for investors who aspire to invest in the equity market with relatively low to moderate risk. As you have seen the 10 best large cap mutual funds in India, the risk is between low to moderate in more than 50% of the funds. 

At the same time, the average 10 years return as per CAGR is around 15%. Let us assume, that you invest Rs. 10,000 as SIP (systematic investment plan) in any of the above mutual funds. The return after 10 years will be 27.9 lakhs, and the wealth gain is 15.9 lakhs. This can’t be possible by fixed deposits or postal saving schemes.

In fact, the above 10 funds analysis would have made you understand, even the worst performance, high-risk mutual funds have produced 12%-13% CAGR in the last 10 years.

The only thing, you should keep in mind is to be a stayed investor. Don’t care about market price fluctuations, market news, and keep investing via SIP. If you can do this consistently with patients, large cap mutual fund should be a piece of your asset allocation.

Risk Involved in Large Cap Mutual Funds?

Even though the risk involved in large-cap funds is low to moderate, there is risk in the investments. Let’s brief in detail.

1. Equity Market Risk:

Stock markets are always prone to risk, fluctuation, bear, and Bull at any time. I mentioned Bull at last because, even after the market plunges to 30-50%, it rises more substantially like a bull to 100%.

2. Concentration Risk:

When a fund manager parks significant funds in a particular sector, you can make your investments at rest at any time. Few large cap mutual funds concentrate on one or two industries. When these two sectors plunge continuously, this risks the investors, and the fund may face a considerable sell-off.

3. Liquidity Risk:

There is no liquidity pressure in Mutual Funds, as you can redeem the funds as per your need. The amount will be transferred to your account within 2 working days.

When there is no buyer for the current market price for stocks in your portfolio, automatically, the price has to come down for liquidity. Every Mutual fund holds 1-5% of the total AUM as cash, and it is was paid to you during redemption.

When more investors redeem, this cash holding will exhaust, and the fund manager has to sell the securities to pay you. This is why we suggest investing in mutual funds holding an AUM of more than 1000 crores.

4. Interest rate Risk:

Interest rates fluctuate depending on whether or not issuers have access to credit and whether or not there is demand in the market. Therefore, an increase in the interest rate may adversely affect the security’s price.

5. Credit Risk:

When the security issuer does not pay interest or return the principal at maturity, it creates a credit risk. As large cap funds hold some percentage of bonds or debt materials, this fund can be prone to credit risk.

Investing in large cap mutual funds: What should an investor consider?

1. Investment Objective:

Investment Goal is the primary focus of every large cap mutual fund while it launches and promotes. First, you should be clear on the benchmark index that your fund is competing. An investor must know the proportion of investment on securities and portfolio of equities. This fundamental analysis provides you few lights on the expected performance of the fund.

2. History of the Fund:

One thing you should know is the history. When the fund opened, what is the performance to date from inception? Peeking at 1 year or 3 years performance is the not way to look at history of fund. Besides NFO, always check the funds that have completed 5 years in the market and yield more than the benchmark index.

3. Fund Manager’s Past Experience:

Fund Managers are the ones who are going to decide the performance the fund you invest. So, it’s necessary to have a quick at the fund managers history.

What are the mutual funds they managed? How long there are managing the current fund? What is the performance vs category of all the fund they managed?.

These analysis will sure provide a exhibit hope on them. It is an advantage if a fund manager is managing the fund you choose since inception.

4. Expense Ratio:

As per the above listing on best large cap mutual funds in India, you can find the funds with lower expense ratio have perform better. So, it’s your duty on choosing the funds with low or moderately low expense ratio (especially when it comes to large cap funds)

5. AUM (Asset Under Management):

One of the important factor, which many investor forgets to look at. When AUM is higher than 1000 Crores, the liquidity or NAV price risks comes down. Be wise in picking the funds with higher AUM.

6. Direct or Regular Plan:

It has seen from the history that, Direct plan overperform Regular funds. On investors stand point, the major difference between direct and regular fund is the expense ratio. You would seen, the 10 best large cap mutual funds we have choose are direct plan.

We have listed few choosing factors, but you should know the complete checklists on how to choose a mutual fund in India.

Advantages of Large Cap Mutual Funds:

  • The most significant advantage of investing in large cap funds is they provide a stable return.
  • These companies have a solid track record in financial revenue flow and pay regular dividends to their shareholders.
  • Large Cap Mutual Funds have low to moderate risk and are nullified if the investment is made for 15 to 20 years.
  • Return on investment ranges between 13% to 16%, higher than fixed deposits, Life Insurance Endowment policies, and other saving schemes.
  • Diversification of investment over the leading companies of India.
  • High Liquidity is another advantage.

Disadvantages of Large Cap Mutual Funds:

  • The returns are not as considerably high as other mutual funds (Mid Cap, Small Cap funds)
  • Investments can be at risk if prior analyze are not done.
  • We have only 10 years of data for the best large cap mutual funds in India.
  • Decision on portfolio management is only with fund managers.
Frequently Asked Questions (FAQ)
Which Large Cap Mutual Fund is Best for 2022?

The Best Large Cap Mutual Funds in 2022 are Axis Bluechip Fund, Mirae Asset Large Cap Fund, SBI Bluechip Fund, ICICI Prudential Bluechip Fund, Canara Robeco Bluechip Equity Fund. All the above funds are Direct plans. We have picked on the basis of Performance from inception, Expense ratio, AUM, and risk compared to the benchmark.

Where do Large Cap Mutual Funds Invest?

Large Cap funds invest in the top 100 companies of India. The top 100 are chosen based on the market capitalization of more than 20,000 crores. As these companies are well-established and stable, the investment returns will also be durable.

Which Mutual Funds is Given the Highest Return?

From the list of the best large cap mutual funds, we picked the top 3 funds on returns from inception. In this case, the mutual funds with the highest returns are Axis Bluechip Fund Direct-Growth, Mirae Asset Large Cap Fund Direct-Growth, and SBI Bluechip fund Direct Growth.

Is it Good to Invest in Large Cap Mutual Funds?

The simple answer is “Yes”. Here is the reason why Large Cap Mutual Funds are good to invest in 2022. These funds are stable, low to moderate risk, return more than debt funds, fixed deposits, endowment policies, saving schemes, etc.

Are Large Cap Mutual Funds high risk?

On average, only a few funds among the picked large cap mutual funds are mapped under high risk. Major large-cap funds have risk meters ranging from low to moderate.

Even, these risk meters can be nullified if you invest for long term.

What Kind of Returns can I earn from Large Cap Funds?

The returns from Large Cap Funds are 2-3x times higher than the inflation of India. Here is the average return from the top 10 large cap mutual funds is 15.22% (average) for the last 5 years, and 15.3% (average) for the last 9 years.

Should I Invest in Large Cap Mutual Funds

Yes, Large Cap funds should be a slice of your asset allocation. Investing in large cap funds provide you stable returns, with lower risk compared to other equity mutual funds. But, it is purely on basis of your investment goal, and risk appetite.

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