Investing in equity has historically provided investors with the potential for attractive returns over the medium to long term. Despite recent volatility in the Nifty 50 index over the past 2-3 years, it has still delivered a whopping 85% return over a 5-year period. If you’re seeking stable returns within a medium-term horizon, investing in large-cap mutual funds can be a rewarding choice. In this article, we will provide you to 10 large-cap mutual funds that have consistently delivered strong returns over the last 5 years and share insights into their performance in terms of rolling returns.
How we have selected these funds?
We’ve short listed the top 10 large-cap funds that have generated the highest returns, regardless of their Assets Under Management (AUM). This selection process is straightforward based on the highest returns and can be replicated by anyone using financial websites like Moneycontrol or ValueResearchOnline.
List of 10 Large-cap Mutual Funds Offering Maximum Returns in 5 Years
| Scheme Name | 1Y | 2Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|
| Canara Robeco Bluechip Equity Fund | 11% | 5% | 17% | 17% | 16% |
| Baroda BNP Paribas Large Cap Fund | 13% | 7% | 18% | 16% | 16% |
| Edelweiss Large Cap Fund | 16% | 8% | 19% | 16% | 15% |
| Kotak Bluechip Fund | 12% | 5% | 18% | 16% | 15% |
| Nippon India Large Cap Fund | 19% | 13% | 26% | 16% | 18% |
| ICICI Prudential Bluechip Fund | 16% | 9% | 21% | 15% | 16% |
| Invesco India Largecap Fund | 14% | 4% | 18% | 15% | 16% |
| SBI Blue Chip Fund | 12% | 6% | 19% | 15% | 16% |
| Tata Large Cap Fund | 12% | 5% | 19% | 15% | 14% |
| HDFC Top 100 Fund | 17% | 11% | 23% | 14% | 15% |
Key Observations from the Top-performing Large-cap Funds in the Last 5 Years
Despite Nifty 100 delivering an annualized return of 12.4% over the last 5 years, these 10 large-cap funds have outperformed, generating over 14% returns.
Even when compared to Nifty 50, which provided an annualized return of 12.9% over the same period, these large-cap funds have shown superior performance.
The majority of these large-cap funds have performed well over a medium to long-term horizon, delivering returns between 14% and 16% over the last 5 to 10 years. Patience is crucial here.
Investors should invest consistently through SIP (Systematic Investment Plan) in mutual funds, irrespective of market conditions, to benefit from the power of compounding and consistent returns.
While some of these funds have performed extremely well in the medium to long term, they may have generated lower returns (around 5%) over the past 2-3 years. It’s important to note that stock markets are generally volatile in the short term (1 to 3 years), whereas large-cap funds tend to perform well in the medium to long term.
From a 3-year rolling perspective, all 10 large-cap funds, except for HDFC Top 100 Fund, have consistently generated positive returns. HDFC Top 100 Fund generated negative returns only 3% of the time.
From a 5-year rolling perspective, these 10 large-cap funds have shown remarkable consistency, delivering positive returns over 99.2% of the time.
Key Takeaways:
Rather than chasing mutual funds solely based on their historical returns, prioritize your investments according to your financial goals and investment horizon. If you have a long-term objective and looking for stable returns, investing in these large-cap funds may be a good choice. If you are looking for high risk high returns mutual funds, you can check for small cap mutual funds.
Look for consistency in mutual fund returns. Most of these funds have generated a remarkable track record, with positive returns for over 99% of the time, except for HDFC Top 100 Fund.
Adopt a disciplined investment approach by investing in mutual funds through SIPs. Take advantage of market corrections that occur every 3 to 6 months. You can create 1 Crore mutual fund corpus with as low as Rs 5,000 SIP
While expert recommendations or ChatGPT MF recommendations or Google Bard AI recommended mutual funds list can be a useful starting point, do your own research to find mutual funds that align with your investment style.
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Thanks Suresh garu.