What are Large Cap Mutual Funds?


Large cap mutual funds are those which invest a large fraction of their investment in companies with large market capitalization. They are known for their constant returns over a certain time-span and are leaders in the field of business, thus, end up remaining stable other than mid-cap companies, especially during market volatility.

What are The Best Large Cap Mutual Funds?

Reliance Large Cap Fund(G)-Direct Plan

Mutual Fund 5 Star

Returns 3Y: 18.52%

Aditya Birla SL Frontline Equity Fund(G)

Return 3Y: 13.17%

ICICI Pru Bluechip Fund (G)-Direct Plan

Mutual Fund 5 Star

Return 3Y: 16.53%

Invesco India Largecap Fund (G) - Direct

Return 3Y: 15.19%

Indiabulls Blue Chip Fund (G) - Direct Plan

Return 3Y: 16.01%

  • Past Performance Is No Guarantee of Future Results

The best large cap mutual funds are those which invest a large proportion of their investment in companies that have a large market capitalization. The prime reason behind investment in Large cap funds is that, they provide consistent returns over a period. These companies are mostly leaders in their business domain and hence tend to remain stable during volatility period. Apart from that they tend to have a good amount of experience in the market and carry a strong performance record. Also they have a strong support of investors both domestic and FII’s (foreign institutional investors).

Who Should Invest in Large Cap Mutual Funds?

Currently, there are plenty of options available to the investor to choose from. But Large Cap Funds are safe to invest. They give the best returns at minimum risk. But different investors have diversified investment goals as well as risk profile and investment horizon. Large Cap Mutual Funds are ideal for investors who want to earn great returns without being exposed to market volatility. For an early investor, Large cap Mutual funds are one of the best options. The largest fund companies have a history of many years of consistent performances during the bull and bears of the market. Any investor who wants good returns at minimum risk, then they must invest in large cap fund.

How to evaluate your Large Cap Funds?


For any investor, the easiest way to select any fund is to look at their historical records. But as an investor, one must also look at other factors to evaluate before investing in large cap funds. Financial ratio does play a key role in evaluating the large cap funds.

  • Alpha:

An alpha is one of the most important metrics to measure the fund performance. It shows the ability of the fund manager to make a profit in comparison to the benchmark. The higher the value of the alpha, more is the ability of the manager to make a profit.

  • Sharpe Ratio:

It provides the measurement of the risk adjusted return of a portfolio. In case, if an investment fund has a higher Sharpe ratio, which means that the portfolio is quite superior to their respective peers.

  • Standard Deviation:

Standard Deviation is basically used by investors to predict a range of returns for various mutual funds. Mainly it indicates the volatility of an investment from its annual rate of return. A stock with having a higher deviation will have a larger price range vis-a vis to stocks with a low standard deviation.

Advantage of Large Cap Funds


One of the advantages of having large cap mf is the stability they bring in your portfolio. Because of their presence for many years in the market, the investor can access their profitability as well as financial details for a certain time period of their performance before finalizing any decision.

NOTE: Make sure to consult an expert for the same.

Key Points To Be Consider as Investor To Invest For Large Cap Mutual Funds


Large cap funds are not subject to risk as their small-cap and mid-cap counterparts. But as an investor, you must consider a few things before you consider to invest in large cap mutual funds. Here:

  1. Before investing, make sure you know the objective of your goals. Try to understand the style and performance of fund management.
  2. With large cap mf, the check on the past performance is crucial. All you need to do is understand the performance of the fund both in the bearish and bullish market cycle. Prefer picking those funds that have been consistent in their numbers regarding the market cycles and conditions.
  3. Fund managers with expertise and experience will be able to make a good position to move the capital in an appropriate direction (according to the positioning of the market).
  4. Before finalizing anything, prefer determining the cost, fees, returns, and the NAV. There are some fund houses that offer high fees with high returns.

Frequently Asked Questions


Large cap mutual fund lookin period?

Tax on Large cap mutual fund Returns?

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Attention Investor
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.

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Mutual fund investments are subject to market risks, read all scheme documents carefully.

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