Largecap mutual funds are preferred by many investors for their stability, strong fundamentals, and ability to navigate market volatility. However, not all largecap funds consistently beat their benchmark indices. To help investors identify quality performers, we analysed all largecap mutual funds and shortlisted those that have outperformed their benchmarks across 1-year, 3-year, and 5-year periods. This article highlights 6 top-performing largecap mutual funds that delivered superior risk-adjusted returns compared to their respective benchmark indices.
Earlier we covered 10 Largecap Mutual Funds That Failed to Beat the Benchmark in Last 5 Years and readers c0mmented saying I should also focus on funds that beat the indices too (which I already do).
How We Filtered These Funds?
To identify the best largecap mutual funds, we used the following methodology:
- Considered all largecap mutual funds – Direct Plans only.
- Reviewed their performance over 1-year, 3-year, and 5-year periods.
- Compared scheme returns against their benchmark indices.
- Selected only those funds that outperformed the benchmark in all three timeframes.
- Data source – AMFI website, Moneycontrol and valueresearchonline
Based on this analysis, the following 6 largecap funds stood out.
List of 6 Largecap Mutual Funds That Beat Their Indices
- Nippon India Large Cap Fund
- ICICI Prudential Large Cap Fund
- Kotak Large Cap Fund
- Mahindra Manulife Large Cap Fund
- Bandhan Large Cap Fund
- Aditya Birla Sun Life Large Cap Fund
Deep Dive Into Each Mutual Fund Scheme
1. Nippon India Large Cap Fund
Benchmark: BSE 100 TRI
Fund Objective
This fund aims to generate long-term capital appreciation by investing predominantly in largecap companies with strong growth potential, sustainable business models, and market leadership.
CAGR Returns
- 1-Year: 12.19%
- 3-Year: 20.41%
- 5-Year: 23.64%
Benchmark Returns
- 1-Year: 11.63%
- 3-Year: 15.19%
- 5-Year: 17.73%
Who Should Invest?
- Investors seeking long-term wealth creation with stability.
- Suitable for moderate-risk investors looking for index-beating returns.
Risk Factors
- Market risk due to equity exposure.
- Higher volatility during market downturns.
We re-iterated and recommended this fund several times and also at Best Large Cap Mutual Funds to Invest in 2025.
2. ICICI Prudential Large Cap Fund
Benchmark: Nifty 100 TRI
Fund Objective
The fund focuses on investing in established largecap companies with proven performance, aiming to deliver consistent returns through active stock selection.
CAGR Returns
- 1-Year: 12.93%
- 3-Year: 19.03%
- 5-Year: 20.77%
Benchmark Returns
- 1-Year: 11.04%
- 3-Year: 14.30%
- 5-Year: 16.89%
Who Should Invest?
- Investors looking for consistent largecap exposure.
- Suitable for those with a medium to long-term investment horizon.
Risk Factors
- Market fluctuations may impact short-term performance.
- Slightly higher risk due to active management.
3. Kotak Large Cap Fund
Benchmark: Nifty 100 TRI
Fund Objective
This fund aims to generate long-term capital appreciation through investment in largecap companies that show sustainable growth and strong balance sheets.
CAGR Returns
- 1-Year: 11.88%
- 3-Year: 17.18%
- 5-Year: 18.50%
Benchmark Returns
- 1-Year: 11.04%
- 3-Year: 14.30%
- 5-Year: 16.89%
Who Should Invest?
- Investors seeking a balanced largecap portfolio.
- Suitable for long-term wealth creation.
Risk Factors
- Limited flexibility as allocation stays within the largecap universe.
- Returns may fluctuate based on economic cycles.
This fund is among the 5 largecap mutual funds that are top rated by CRISIL as well as ValueResearch.
4. Mahindra Manulife Large Cap Fund
Benchmark: Nifty 100 TRI
Fund Objective
This fund targets long-term growth by investing primarily in fundamentally strong and financially stable largecap companies.
CAGR Returns
- 1-Year: 11.34%
- 3-Year: 15.89%
- 5-Year: 18.44%
Benchmark Returns
- 1-Year: 11.04%
- 3-Year: 14.30%
- 5-Year: 16.89%
Who Should Invest?
- Investors with a moderate risk profile.
- Suitable for those seeking steady returns from established companies.
Risk Factors
- Equity market volatility.
- May underperform during extreme market phases.
5. Bandhan Large Cap Fund
Benchmark: BSE 100 TRI
Fund Objective
This fund invests in high-quality largecap businesses with strong fundamentals, aiming to provide long-term appreciation while minimizing downside risk.
CAGR Returns
- 1-Year: 11.85%
- 3-Year: 18.30%
- 5-Year: 18.36%
Benchmark Returns
- 1-Year: 11.63%
- 3-Year: 15.19%
- 5-Year: 17.73%
Who Should Invest?
- Investors looking for consistent, index-beating performance.
- Suitable for conservative to moderate risk profiles.
Risk Factors
- Performance depends on largecap market cycles.
- Limited diversification beyond the largecap segment.
6. Aditya Birla Sun Life Large Cap Fund
Benchmark: Nifty 100 TRI
Fund Objective
The fund focuses on investing in established largecap leaders with strong competitive advantages and stable cash flows.
CAGR Returns
- 1-Year: 11.21%
- 3-Year: 16.37%
- 5-Year: 18.35%
Benchmark Returns
- 1-Year: 11.04%
- 3-Year: 14.30%
- 5-Year: 16.89%
Who Should Invest?
- Investors seeking broad largecap exposure.
- Suitable for long-term financial planning.
Risk Factors
- Moderate volatility due to equity markets.
- Potential short-term underperformance.
This fund is among Top 9 Largecap Funds that beat the benchmark in medium to long term of 5 to 10 years.
Summary of Mutual Fund Performance
All six largecap mutual funds listed above have successfully surpassed their benchmark indices across 1-year, 3-year, and 5-year durations. This consistent outperformance reflects strong fund management, quality stock selection, and disciplined investment processes. Investors looking for index-beating returns with relatively lower volatility may consider allocating a portion of their portfolio to these funds.
Conclusion
Largecap mutual funds continue to be a reliable category for long-term investors seeking stability and steady appreciation. The six funds highlighted here have demonstrated consistent performance across multiple timeframes, making them strong contenders for inclusion in a diversified portfolio. As always, investors should align investments with their risk profile and financial goals.
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