If you are a mutual fund investor looking for consistency, stability, and long-term wealth creation, largecap mutual funds should definitely be part of your core portfolio. These funds invest in top 100 companies by market capitalisation, which are generally industry leaders with strong fundamentals. In this article, we’ll discuss the Top-rated largecap mutual funds that have delivered over 22.9% CAGR returns in the last 5 years. We’ll also explore why largecap funds are a must-have, how mutual funds are rated, and dive deeper into the specifics of each high-performing scheme.
Earlier we reviewed about 8 Morningstar 5-Star Rated Mutual Funds to Invest in 2025.
What Are Largecap Mutual Funds?
Largecap mutual funds are equity funds that primarily invest in the top 100 companies listed in India based on market capitalisation. These companies are known for their robust business models, good corporate governance, and consistent performance. Because they are leaders in their respective sectors, they offer relative stability and steady returns.
Why Should Largecap Mutual Funds Be Part of Your Core Portfolio?
- Stability in Volatile Markets: Largecap stocks tend to be less volatile compared to midcap or smallcap stocks.
- Proven Track Record: These companies have survived multiple market cycles, making them reliable.
- Liquidity: Largecap stocks are highly liquid and easy to buy/sell.
- Long-Term Growth: Ideal for wealth creation over 5-10 years.
What is CRISIL Mutual Fund Rating?
CRISIL ranks mutual funds based on factors such as past performance, risk-adjusted returns, and consistency. The highest rating is Rank-1, which indicates superior performance, and the lowest is Rank-5, indicating relatively weak performance.
While the official CRISIL website presents these rankings as Rank-1 to Rank-5, the Moneycontrol website displays them as star ratings for ease of understanding — i.e., Rank-1 as 5-Star, Rank-2 as 4-Star, and so on until Rank-5 as 1-Star.
In this article, we will follow the Moneycontrol-style star ratings for consistency and easier understanding for our readers.
Investors can check out our earlier article on 10 CRISIL 5 Star Rated Mutual Funds with over 30% CAGR in the last 5 years to invest in 2025.
What is Value Research Online (VRO) Rating?
Value Research rates mutual funds from 1 to 5 stars, based on risk-adjusted historical performance. A 5-star rating indicates the top 10% funds in a category.
How We Filtered These Mutual Funds
We have shortlisted largecap mutual funds that have:
- Received 4-star or 5-star ratings from both CRISIL and Value Research Online.
- Delivered 22.9% or more CAGR over the last 5 years.
- Strong historical performance over multiple time horizons (1Y, 3Y, 5Y, 10Y).
Data source is Value Research and Moneycontrol as of 30-Jun-2025
List of Top-Rated Largecap Mutual Funds with Over 22.9% CAGR in 5 Years
| Fund Name | VRO Rating | CRISIL Rating | 5Y CAGR |
|---|---|---|---|
| Nippon India Large Cap Fund | 5 Star | 5 Star | 27.5% |
| ICICI Prudential Largecap Fund | 5 Star | 5 Star | 24.6% |
| Invesco India Largecap Fund | 4 Star | 4 Star | 23.4% |
| Kotak Bluechip Fund | 4 Star | 4 Star | 22.9% |
| Edelweiss Large Cap Fund | 4 Star | 4 Star | 22.9% |
Get full List here on 13 Value Research 5 Star rated Mutual Funds with over 30% CAGR Returns in 5 years to invest in 2025.
Why These 5 Funds Are Unique?
- Not from a single AMC: The funds are spread across different Asset Management Companies (AMCs), reducing AMC-specific risk.
- Highly Rated: Each fund is rated either 4-star or 5-star by both CRISIL and Value Research, indicating top-tier performance.
- Consistent Performance: All have delivered over 22.9% CAGR in the past 5 years, a strong indicator of consistency.
- Diversified Strategy: These funds have different stock-picking strategies and sectoral exposures, which adds to portfolio balance.
- Suitable for Long-Term SIPs: Their consistent returns and stable performance make them ideal for SIP-based investing.
5 Top-Rated Largecap Funds with Over 22.9% CAGR in 5 Years – Deep Dive
Lets deep dive in these funds. The returns are rounded off.
#1 – Nippon India Large Cap Fund
- Fund Objective: To invest predominantly in largecap companies with an aim to generate long-term capital appreciation.
- Annualised Returns:
- 1 Year: 7.8%
- 3 Years: 26.3%
- 5 Years: 27.5%
- 10 Years: 15.4%
- VRO Rating: 5 Star
- CRISIL Rating: 5
- Assets Under Management (AUM): ₹41,750 Cr
- Risks:
- Market risk due to equity exposure
- Concentration in top 100 companies
- May underperform in short-term volatile markets
- Who Can Invest?
- Investors with moderate to high-risk appetite
- Those looking for long-term capital growth through SIPs
- Ideal for core portfolio allocation
- This fund is part of 20 Equity Funds that generated positive returns every year in the last 10 years.
#2 – ICICI Prudential Large Cap Fund
- Fund Objective: Aims to provide capital appreciation by investing in large and stable bluechip companies.
- It was renamed from ICICI Pru Bluechip Fund to ICICI Pru Large Cap Fund recently.
- Annualised Returns:
- 1 Year: 8.8%
- 3 Years: 23.5%
- 5 Years: 24.6%
- 10 Years: 15.2%
- VRO Rating: 5 Star
- CRISIL Rating: 5
- AUM: ₹69,762 Cr
- Risks:
- Exposed to market volatility
- May lag in midcap or smallcap rallies
- Who Can Invest?
- Conservative to moderate risk investors
- Those seeking consistent and stable returns
- Suitable for SIP-based long-term investing
#3 – Invesco India Large Cap Fund
- Fund Objective: Fund invests in largecap stocks.
- Annualised Returns:
- 1 Year: 9.3%
- 3 Years: 23.7%
- 5 Years: 23.4%
- 10 Years: 14.7%
- VRO Rating: 4 Star
- CRISIL Rating: 4
- AUM: ₹1,488 Cr
- Risks:
- Smaller AUM compared to peers may limit fund house’s ability to manage large inflows or outflows efficiently.
- Concentration risk if few top holdings underperform.
- Market volatility can impact returns as the fund remains fully invested in largecap stocks.
Who Can Invest?
-
- Investors looking for consistent exposure to blue-chip companies.
- Those who can stay invested for 5+ years to benefit from compounding and market cycles.
- Ideal for moderate to high-risk investors preferring a largecap-only portfolio.
- Suitable for SIP investors aiming to build long-term wealth with relatively lower downside risk.
#4 – Kotak Bluechip Fund
- Fund Objective: Seeks to invest in largecap companies with sound fundamentals and sustainable business models.
- Annualised Returns:
- 1 Year: 7.5%
- 3 Years: 21.2%
- 5 Years: 22.9%
- 10 Years: 14.3%
- VRO Rating: 4 Star
- CRISIL Rating: 4
- AUM: ₹10,138 Cr
- Risks:
- Moderate risk due to concentration in largecap segment
- Can underperform in highly bullish markets dominated by smaller companies
- Who Can Invest?
- Investors looking for balanced exposure to equity
- Suitable for medium to long-term financial goals
- Ideal for conservative investors new to equity markets
- This fund is part of our earlier reco on 5 Best Blue Chip Mutual Funds to invest in 2025.
#5 – Edelweiss Large Cap Fund
- Fund Objective: Focuses on investing in largecap stocks that demonstrate long-term value creation potential.
- Annualised Returns:
- 1 Year: 6.5%
- 3 Years: 22.5%
- 5 Years: 22.9%
- 10 Years: 14.0%
- VRO Rating: 4 Star
- CRISIL Rating: 4
- AUM: ₹1,270 Cr
- Risks:
- Smaller AUM may impact fund management flexibility
- Risk of underperformance if stock selection strategy falters
- Who Can Invest?
- Seasoned investors who monitor performance regularly
- Those seeking diversification within largecap space
- Suitable for long-term equity allocation via SIPs
There were 7 Mutual Funds that turned ₹ 1 Lakh to ₹ 5 Lakh in 5 years.
Should You Invest in All These 5 Mutual Funds?
While all these mutual funds have shown outstanding historical returns and ratings, it is not necessary to invest in all of them. Instead, you can:
- Select 2-3 funds based on your financial goals and risk appetite
- Diversify across fund houses and strategies
- Invest through SIPs to benefit from rupee cost averaging
- Focus on medium to long-term horizons (5 to 10 years) for optimal returns
This strategy allows you to balance risk while maximizing potential returns from India’s top largecap companies.
Conclusion
Largecap mutual funds offer a balanced route to equity investing—combining stability with long-term growth potential. The five funds discussed above have delivered stellar returns over the last 5 years with a CAGR of 22.9% or more. These funds are backed by strong CRISIL and Value Research ratings, making them credible options for your core portfolio. If you are aiming for long-term wealth creation with relatively lower risk compared to mid and smallcaps, these top-rated largecap funds could be excellent additions to your investment strategy.
As always, consider your financial goals and consult your financial advisor before investing.
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
Why you have not mentioned the expense ratio for these funds? In fact, no AMCs are not mentioning their products’ expense ratio? Why?
This article is about top rated funds from rating agencies and all details of mutual funds need not be incorporated. We have moneycontrol or valueresearch if you want the data.