Mutual Funds · Large cap
Large-Cap Funds
SEBI-mandated to invest 80%+ in top-100 listed companies by market cap. The most stable equity category — lower drawdowns, lower returns than mid/small. Best as the foundation of an equity portfolio (40-60% allocation for most investors). Typical 3-yr returns: 14-18% CAGR; expense ratio 0.5-1.5% direct.
Who needs this
Conservative equity investors. First-time MF buyers. Anyone wanting equity exposure without rollercoaster volatility. Retirement-oriented portfolios.
Category at a glance
Min equity allocation
80%
SEBI mandate
Top-100 stock universe
Required
Nifty 100-equivalent
Typical 3-yr CAGR
14-18%
Category median
Expense ratio (direct)
0.5-1.5%
Lower = better
Volatility (std dev)
12-18%
Lowest in equity
Tax (LTCG)
12.5%
Above ₹1.25L/yr
Top 5 large-cap funds
Source: AMFI + AMC factsheets · refreshed quarterly
| Fund | AMC | Expense % | 3y CAGR |
|---|---|---|---|
| Mirae Asset Large Cap | Mirae Asset | 0.55% | 16.8% |
| Axis Bluechip Fund | Axis | 0.62% | 14.2% |
| ICICI Prudential Bluechip | ICICI Pru | 0.83% | 17.5% |
| Nippon India Large Cap | Nippon | 0.78% | 18.2% |
| HDFC Top 100 Fund | HDFC | 0.91% | 16.4% |
Key decisions
- Q1
Active large-cap or index fund?
Index (Nifty 50 / Nifty 100) wins for most. Active large-caps struggle to beat index after fees — only ~30% of active large-caps beat their benchmark over 5 years. Pick active only if expense ratio < 1% AND 5-yr alpha > benchmark.
- Q2
How much portfolio allocation?
30s-40s: 40-50% of equity. 50s+: 60-70% of equity. Younger / aggressive: 30%.
- Q3
Direct or regular plan?
Direct (no commission, lower expense). Available via Coin / Groww / Kuvera / MFCentral.
SEBI rules + scheme specifics
- SEBI categorisation (Oct 2017): Large Cap = top 100 stocks by market cap.
- Minimum 80% in large-cap stocks, max 20% in non-large-cap.
- Benchmark: Nifty 100 TRI (Total Return Index).
- LTCG: 12.5% on gains > ₹1.25L/year (held ≥ 12 months).
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