Large Cap Mutual Funds – Meaning, Performance & Returns in 2025
Large cap mutual funds are a type of equity fund, a category of mutual funds that usually invest in well-established, financially stable companies with a large market capitalisation. These funds are known for their focus on investing in blue-chip companies. For many, top large cap mutual funds can be a good choice for investors seeking relatively lower risk and long-term growth prospects in the world of mutual fund investments. In this article, we will discuss large cap mutual funds, their features, benefits, risks and more.
Top 10 Large Cap Mutual Funds in India
| Largecap Fund Name | Fund Size (Rs. in Cr) | Expense Ratio (%) | CAGR 5Y (%) |
|---|---|---|---|
| Nippon India Large Cap Fund | 44,164.76 | 0.65 | 25.05 |
| ICICI Pru Large Cap Fund | 71,787.87 | 0.85 | 22.11 |
| HDFC Large Cap Fund | 38,116.69 | 1 | 21.61 |
| Invesco India Largecap Fund | 1,528.01 | 0.71 | 20.77 |
| Mahindra Manulife Large Cap Fund | 708.93 | 0.66 | 20.43 |
| Tata Large Cap Fund | 2,631.27 | 0.99 | 20.20 |
| Kotak Large Cap Fund | 10,342.14 | 0.61 | 20.12 |
| Aditya Birla SL Large Cap Fund | 30,234.55 | 0.95 | 20.03 |
| Edelweiss Large Cap Fund | 1,291.81 | 0.61 | 19.86 |
| Franklin India Large Cap Fund | 7,772.63 | 1.08 | 19.82 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Note: The data on the top 10 large cap mutual funds in India list is from 8th September 2025, and the data is derived from Tickertape Mutual Fund Screener, using the following parameters:
- Category: Large Cap Fund
- Plan: Growth
- 5-yr CAGR: Sorted from highest to lowest
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Overview of the Best Large-Cap Funds in India
Nippon India Large Cap Fund
Nippon India Large Cap Fund is often included at one of the top spots in list of large-cap mutual funds in India. The mutual fund focuses on well-established companies with strong market presence. Their portfolio is designed for stability and long-term capital appreciation, maintaining a diversified approach across various sectors.
ICICI Pru Large Cap Fund
ICICI Prudential Large Cap Fund is recognised as one of the best mutual funds in India, investing in leading blue-chip companies with a strong financial track record. This mutual fund aims to generate wealth by focusing on businesses with competitive advantages and sustainable growth prospects.
HDFC Large Cap Fund
The HDFC Large Cap Fund is an equity mutual fund that invests primarily in large-cap companies with established business models and strong market presence. It aims to deliver long-term capital appreciation by focusing on financially stable firms with consistent growth potential, while maintaining relatively lower volatility compared to mid- or small-cap funds.
Invesco India Largecap Fund
Invesco India Largecap Fund focuses on high-quality large-cap stocks with strong financials. It follows a systematic approach to stock selection, ensuring exposure to market leaders. The mutual fund portfolio aims for steady long-term returns, making it a good choice for those considering the best mutual fund for long-term investment.
Mahindra Manulife Large Cap Fund
Mahindra Manulife Large Cap Fund is widely included in the list of large-cap mutual funds in India. The fund aims for long-term financial growth by investing in high-quality companies. The mutual fund portfolio emphasises businesses with strong governance, leadership, and financial resilience. It follows a structured approach to stock selection, ensuring a well-diversified portfolio across different industries.
Tata Large Cap Fund
The Tata Large Cap Fund is an equity mutual fund that focuses on investing in large-cap companies with strong fundamentals and stable earnings. It aims to provide long-term capital growth by building a diversified portfolio of industry leaders while maintaining relatively lower volatility compared to mid– and small-cap funds.
Kotak Large Cap Fund
Kotak Large Cap Fund invests in large-cap stocks with strong fundamentals and consistent performance. It aims to deliver long-term capital appreciation by focusing on market leaders across various sectors. The fund follows an active investment strategy to identify companies with sustained growth potential.
Aditya Birla SL Large Cap Fund
Aditya Birla Sun Life Frontline Equity Fund is widely recognised as one of the best mutual funds in India, investing in leading large-cap companies across various sectors. It follows a research-based investment approach, focusing on businesses with strong fundamentals and competitive advantages.
Edelweiss Large Cap Fund
Edelweiss Large Cap Fund, known for its strong mutual fund performance, invests in market-leading companies with competitive advantages. The fund follows a research-driven strategy to capture consistent growth opportunities and is recognised among the best equity mutual funds in India. It seeks to create long-term wealth through investments in fundamentally strong businesses across various sectors.
Franklin India Large Cap Fund
Franklin India Large Cap Fund is an equity scheme that invests predominantly in large-cap companies with strong balance sheets and established market positions. It seeks to deliver long-term capital appreciation through a diversified portfolio of industry leaders, offering stability and relatively lower risk than mid- or small-cap investments.
What are Large Cap Mutual Funds?
Large Cap Mutual Funds are equity schemes that invest primarily in the top 100 companies in India by market capitalisation. These companies are typically well-established, financially stable, and industry leaders with consistent performance records. Such funds aim to provide long-term capital appreciation while offering relatively lower volatility compared to mid- and small-cap funds, making them suitable for investors seeking stability with steady growth potential.
How to Invest in Large Cap Mutual Funds?
You can easily invest in the best large cap mutual funds by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best large cap fund investment which aligns with your investment thesis. You can easily select and learn more about the best large cap funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance and conduct a large cap fund portfolio analysis.
- Once you have selected the funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
Features of the Best Large-Cap Mutual Funds
- Portfolio Composition: These funds invest at least 80% of assets in the top 100 companies by market capitalisation, as mandated by SEBI regulations.
- Market-Cap Focus: These funds target large-cap stocks with a market capitalisation typically above ₹20,000 cr, ensuring exposure to established companies.
- Investment Objective: They are designed to generate long-term capital appreciation while prioritising portfolio stability through investments in industry leaders.
- Benchmark Alignment: Equity large cap funds are usually benchmarked against indices like Nifty 100, ensuring performance is measured against relevant large-cap peers.
- Risk Profile: Categorised as moderate-risk funds under SEBI’s risk meter, since large cap stocks tend to be less volatile than mid- and small-caps.
Who Should Invest in Large-Cap Funds?
- Long-term investors: Large cap mutual funds, including the best large cap SIP options, may attract long term investors (at least 5 years). This is because the stock market can be volatile in the short term, but large cap companies tend to generate steadier returns over the long term.
- Risk-averse investors: Large cap mutual funds are generally considered to be lower-risk investments than other types of equity funds, such as small-cap and mid-cap mutual funds. Thus, they may attract risk-averse investors.
- Investors who need to access their money quickly: Large cap stocks are more liquid than smaller stocks, meaning that they can be more easily bought and sold.
- Investors who are looking to build a core portfolio: Large cap mutual funds can be a good way to build a core portfolio of equity investments. A core portfolio is a portfolio of low-cost, diversified investments that can help investors achieve their long-term financial goals.
How to Identify Large-Cap Mutual Funds?
- Performance: You can look for large cap mutual funds for long term that have a consistent track record of outperforming their benchmark index and peers over a long-term period, typically at least 5 yr. Analysing the historical performance can give you insights into how the fund has managed various market cycles.
- Expense Ratio: Choosing funds with a lower expense ratio may be beneficial as it helps reduce the overall investment cost. A lower expense ratio means that a greater portion of the returns stays with you, potentially enhancing your long-term gains.
- Investment Strategy: It is important to ensure that the fund’s investment strategy aligns with your own investment objectives and risk tolerance. Large cap mutual funds for long term generally invest in well-established companies, but you should consider whether the fund’s approach matches your financial goals.
- Portfolio Concentration: You can evaluate the fund’s portfolio concentration to avoid funds that are overly invested in a few sectors or stocks. High concentration can increase risk, so diversifying across various sectors may help mitigate potential downsides.
Taxation on Large Cap Mutual Funds
Large-cap mutual funds are usually equity funds that are taxed accordingly. Being aware of these tax implications is essential for making informed financial decisions.
Short-Term Capital Gains Tax
Any gains made when holding equity mutual funds for less than 12 months are considered short-term capital gains. The Union Budget 2024-25 increased the tax rate on these gains to 20%. The STCG tax rate was previously 15%.
Long-Term Capital Gains Tax
For equity mutual funds held for over a year, gains are classified as long-term capital gains. The new budget introduces these key changes:
- Tax-Free Limit: Capital gains up to ₹1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
- Tax Rate: The gains exceeding ₹1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
- Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Benefits of Large Cap Funds in India
- Stability in Volatile Markets: Large cap companies have established business models and strong financials, making their stocks less prone to extreme price swings compared to mid- and small cap stocks.
- Reliable Track Records: These funds invest in industry leaders with a history of consistent large cap fund performance 2025, giving investors confidence during uncertain economic conditions.
- Steady Wealth Creation: While not as aggressive as mid- or small-cap funds, the top rated large cap funds India aim for sustainable long term growth by focusing on fundamentally strong companies.
- Resilience During Downturns: Large cap companies often have diversified revenue streams and stronger cash flows, helping them withstand economic slowdowns better than smaller firms.
Risks Involved While Investing in Large Cap Index Funds
- Market Fluctuations: Mutual fund returns are always subject to market fluctuations. Investing in large-cap funds means you can experience some of these market swings.
- Concentration Risk: The best performing large cap funds can often be weighted towards a handful of the biggest companies. This concentration can make you vulnerable if those few companies face trouble.
- Limited Growth: Large cap companies are already well-established, which means their growth might be slower compared to smaller companies. So, you may not see rapid returns even with the best large-cap mutual funds in India.
- Inflation: Inflation can eat into your real returns over time. Large-cap index funds may not always outpace inflation, potentially affecting your purchasing power.
Factors to Consider Before Investing in Large-Cap Mutual Funds
- Your Investment Goals & Risk Appetite: High return large cap mutual funds are generally considered to be lower-risk investments than other types of equity funds, but they also tend to generate lower returns.
- Fund’s Performance History: It is important to look at the fund’s performance history over the long term (at least 5 years) to assess its consistency. You can also compare the fund’s performance to its benchmark index and other large-cap mutual funds.
- Fund’s Expense Ratio: The expense ratio is the annual fee that is charged to manage the fund. Lower expense ratios may lead to higher returns for investors.
- Fund’s Investment Strategy: Large-cap mutual funds can have different investment strategies. Some funds may focus on investing in value stocks, while others may focus on investing in growth stocks.
- Fund’s Track Record of the Fund Manager: The fund manager plays an important role in the performance of a mutual fund. It is important to look at the fund manager’s track record and experience to assess their ability to generate returns.
To Wrap It Up…
In conclusion, investing in Large Cap Index Funds can be a smart move for those who seek a steady and reliable path to wealth growth. So, whether you’re new to investing or a seasoned pro, you can perhaps find a place for Large Cap Index Funds in your portfolio. Remember, while they may not be the flashiest option, they bring a reliable, long-term approach to your investment journey.
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Frequently Asked Questions (FAQs) on Large Cap Funds
Large-cap mutual funds can be suitable investments for 3 years or more. However, it is important to note that all investments carry some risk, and there is no guarantee that large cap funds will generate positive returns over any given period of time.
Large-cap mutual funds can be a good option for new investors. This is because they are relatively low-risk and offer the potential for good returns over the long term. However, all investors need to conduct their own research and consult a financial advisor before investing.
Returns on large-cap mutual funds vary depending on the fund and the market conditions. For example, the Nifty 50 index has generated an average annual return of over 12% over the past 10 years.
Investors should evaluate their investment objectives and risk tolerance before deciding how long to stay invested in any kind of mutual fund.
Investing in and adding two large-cap mutual funds is not mandatory. However, one must consider their risk appetite and investment goals before investing.
You can choose to invest in large cap mutual funds at any time.
