Largecap mutual funds are popular among investors who prefer stability and consistent growth. These funds primarily invest in the top 100 companies by market capitalization, making them relatively safer compared to midcap or smallcap funds. While the expectation is that largecap funds deliver returns close to or better than the benchmark, not all funds succeed in doing so. In this article, we have identified 10 10 Largecap Mutual Funds That Failed to Beat the Benchmark in Last 5 Years. We analyzed all largecap funds, compared their 5-year returns with their benchmarks, and shortlisted those laggards. Let’s deep dive into each of these funds and see whether investors should continue holding them.
Earlier we analysed on some of the Best Largecap Mutual Funds to invest in 2025.
How We Identified These Large Cap Funds
- We considered all largecap mutual funds currently available.
- We compared their 5-year annualized returns (Direct Plan) with their benchmark indices (BSE 100 TRI / Nifty 100 TRI).
- Funds generating lower returns compared to their benchmarks were included.
- From this exercise, we got 10 largecap funds that lagged behind expectations.
- Data as of 21-Sep-2025 and data source is from AMFI and ValueResearch.
10 Largecap Mutual Funds That Failed to Beat the Benchmark in Last 5 Years
Here are the list of largecap mutual funds that underperformed the benchmark.
| Scheme Name | Benchmark | 5Y Return (%) | Benchmark 5Y Return (%) | Gap (Underperformance) |
|---|---|---|---|---|
| Axis Large Cap Fund | BSE 100 TRI | 15.83 | 19.56 | -3.73 |
| Taurus Large Cap Fund | BSE 100 TRI | 17.11 | 19.56 | -2.45 |
| PGIM India Large Cap Fund | Nifty 100 TRI | 17.11 | 18.84 | -1.73 |
| LIC MF Large Cap Fund | Nifty 100 TRI | 17.43 | 18.84 | -1.41 |
| Union Largecap Fund | BSE 100 TRI | 18.16 | 19.56 | -1.39 |
| UTI Large Cap Fund | BSE 100 TRI | 18.36 | 19.56 | -1.20 |
| JM Large Cap Fund | BSE 100 TRI | 18.52 | 19.56 | -1.03 |
| Mirae Asset Large Cap Fund | Nifty 100 TRI | 18.17 | 18.84 | -0.67 |
| Groww Large Cap Fund | Nifty 100 TRI | 18.21 | 18.84 | -0.64 |
| Bandhan Large Cap Fund | BSE 100 TRI | 19.33 | 19.56 | -0.22 |
Deep Dive into these Underperforming Largecap Mutual Funds
1. Axis Large Cap Fund
- Benchmark: BSE 100 TRI
- 5-Year Returns: 15.83% vs Benchmark 19.56% (Underperformed by 3.73%)
Fund Objective: Seeks to generate long-term capital growth by investing in largecap companies.
Annualised Returns:
- 1 Year: -0.1%
- 3 Years: 12.8%
- 5 Years: 15.8%
- 10 Years: 13.9%
Who Can Invest: Conservative investors preferring well-known companies.
Risk Factors:
- Consistent disappointment vs benchmark
- Portfolio concentration risk
- Market volatility impact
If you see my earlier article about Largecap Funds where Suresh KP is investing, I reviewed this fund (Axis Bluechip Fund was renamed now to Axis Largecap Fund in 2025) and exited during that time.
2. Taurus Large Cap Fund
- Benchmark: BSE 100 TRI
- 5-Year Returns: 17.11% vs 19.56% (Underperformed by 2.45%)
Fund Objective: To provide long-term capital appreciation by investing in largecap companies.
Annualised Returns:
- 1 Year: -0.8%
- 3 Years: 12.6%
- 5 Years: 17.1%
- 10 Years: 10.6%
Who Can Invest: Investors seeking moderate exposure to largecap stocks.
Risk Factors:
- Weak long-term track record
- High volatility in short term
- Limited alpha generation
3. PGIM India Large Cap Fund
- Benchmark: Nifty 100 TRI
- 5-Year Returns: 17.11% vs 18.84% (Underperformed by 1.73%)
Fund Objective: Aims to provide capital appreciation through investments in top 100 companies.
Annualised Returns:
- 1 Year: 0.3%
- 3 Years: 14.5%
- 5 Years: 17.1%
- 10 Years: 12.5%
Who Can Invest: Investors with medium to long-term horizon.
Risk Factors:
- Below-expectation performance
- Benchmark-driven fluctuations
- Economic slowdown risks
4. LIC MF Large Cap Fund
- Benchmark: Nifty 100 TRI
- 5-Year Returns: 17.43% vs 18.84% (Underperformed by 1.41%)
Fund Objective: Focus on largecap stocks with growth and stability.
Annualised Returns:
- 1 Year: 0.1%
- 3 Years: 13.4%
- 5 Years: 17.4%
- 10 Years: 12.1%
Who Can Invest: Long-term conservative investors.
Risk Factors:
- Disappointed vs benchmark growth
- Lower consistency in returns
- Market cycle dependency
We reviwed this fund as part of 10 Worst Performing Mutual Funds in last 20 years article earlier.
5. Union Largecap Fund
- Benchmark: BSE 100 TRI
- 5-Year Returns: 18.16% vs 19.56% (Underperformed by 1.39%)
Fund Objective: Aims at long-term capital appreciation by investing predominantly in largecap companies.
Annualised Returns:
- 1 Year: -0.1%
- 3 Years: 14.4%
- 5 Years: 18.1%
- 10 Years: NA
Who Can Invest: Moderate risk-takers looking for largecap focus.
Risk Factors:
- Limited performance history (10 years not available)
- Mild underperformance
- Market sentiment risks
6. UTI Large Cap Fund
- Benchmark: BSE 100 TRI
- 5-Year Returns: 18.36% vs 19.56% (Underperformed by 1.20%)
Fund Objective: Long-term growth by investing in largecap companies.
Annualised Returns:
- 1 Year: -0.9%
- 3 Years: 13.9%
- 5 Years: 18.3%
- 10 Years: 13.1%
Who Can Invest: Long-term investors seeking diversified largecap portfolio.
Risk Factors:
- Lagged behind benchmark
- Higher downside risk in corrections
- Inconsistent alpha generation
UTI Mastershare Fund waas renamed to UTI Large Cap Fund in 2023. This is one of the 5 Oldest Mutual Funds that was launched 30 years back. .
7. JM Large Cap Fund
- Benchmark: BSE 100 TRI
- 5-Year Returns: 18.52% vs 19.56% (Underperformed by 1.03%)
Fund Objective: To provide long-term wealth creation opportunities through largecap stocks.
Annualised Returns:
- 1 Year: -3.9%
- 3 Years: 17.1%
- 5 Years: 18.5%
- 10 Years: 12.7%
Who Can Invest: Aggressive investors ready to take short-term volatility.
Risk Factors:
- Poor 1-year performance
- Below benchmark consistency
- Volatility risk
8. Mirae Asset Large Cap Fund
- Benchmark: Nifty 100 TRI
- 5-Year Returns: 18.17% vs 18.84% (Underperformed by 0.67%)
Fund Objective: To generate long-term capital appreciation by investing in largecap companies.
Annualised Returns:
- 1 Year: 1.7%
- 3 Years: 14.5%
- 5 Years: 18.1%
- 10 Years: 14.7%
Who Can Invest: Long-term investors preferring consistency.
Risk Factors:
- Marginal underperformance
- High AUM concentration risk
- Benchmark-driven corrections
This fund is among 10 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 10 Lakhs in 15 Years.
9. Groww Large Cap Fund
- Benchmark: Nifty 100 TRI
- 5-Year Returns: 18.21% vs 18.84% (Underperformed by 0.64%)
Fund Objective: To deliver long-term capital growth via largecap stocks.
Annualised Returns:
- 1 Year: -0.4%
- 3 Years: 15.8%
- 5 Years: 18.2%
- 10 Years: 13.3%
Who Can Invest: Investors with medium risk appetite.
Risk Factors:
- Disappointed vs benchmark despite decent performance
- Short-term volatility risk
- Sector concentration
10. Bandhan Large Cap Fund
This fund is among 13 Wealth Builder Mutual Funds with 5 Star Rating from ValueResearch to invest in 2025.
- Benchmark: BSE 100 TRI
- 5-Year Returns: 19.33% vs 19.56% (Underperformed by 0.22%)
Fund Objective: Long-term wealth creation through investment in largecap companies.
Annualised Returns:
- 1 Year: NA
- 3 Years: NA
- 5 Years: 19.3%
- 10 Years: NA
Who Can Invest: Long-term investors seeking near-benchmark performance.
Risk Factors:
- Marginal underperformance
- Short history of performance
- Benchmark-tracking risk
Conclusion
While largecap mutual funds are considered relatively stable, not all of them have managed to meet investor expectations in the last 5 years. The disappointment ranges from marginal (0.22%) to significant (3.73%). Investors should not take decisions purely based on short-term or medium-term underperformance. However, consistent laggards with weak track records (like Axis, Taurus, JM) may need to be reviewed appropriately.
If you are invested in any of these funds, check your investment horizon, compare with peers, and evaluate whether switching to a consistent performer could benefit you in the long run.
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