Top Large Cap Mutual Funds in India: Best Investment Picks 2025

Indian stock markets have seen fluctuations in recent times, yet long-term investments have consistently yielded strong returns. Large-cap mutual funds, known for their stability, have delivered substantial gains over the last five years. Some funds have generated annualized returns exceeding 18 per cent, outperforming their respective benchmarks. Investors seeking lower-risk equity options may find large-cap funds a viable choice for long-term wealth accumulation.

Top Large Cap Mutual Funds Based on Five-Year Returns

The following large-cap mutual funds have recorded higher returns than their benchmark indices:

- Nippon India Large Cap Fund – 18.84 per cent (BSE 100 TRI: 15.82 per cent)

- ICICI Prudential Bluechip Fund – 18.30 per cent (Nifty 100 TRI: 15.03 per cent)

- HDFC Large Cap Fund – 17.2 per cent (Nifty 100 TRI: 15.03 per cent)

- JM Large Cap Fund – 18.65 per cent (BSE 100 TRI: 15.82 per cent)

- Canara Robeco Bluechip Equity Fund – 18.52 per cent (BSE 100 TRI: 15.82 per cent)

- Kotak Bluechip Fund – 16.38 per cent (Nifty 100 TRI: 15.03 per cent)

- Edelweiss Large Cap Fund – 18.37 per cent (Nifty 100 TRI: 15.03 per cent)

- Mahindra Manulife Large Cap Fund – 16.37 per cent (Nifty 100 TRI: 15.03 per cent)

- Baroda BNP Paribas Large Cap Fund – 18.2 per cent (Nifty 100 TRI: 15.03 per cent)

- Invesco India Large Cap Fund – 15.97 per cent (Nifty 100 TRI: 15.0 per cent)

Large-cap mutual funds allocate investments primarily in top-tier companies ranked among the top 100 in market capitalization, as per the Securities and Exchange Board of India (SEBI) guidelines. These companies include well-established entities such as Reliance Industries and Tata Consultancy Services (TCS), known for their market leadership and stable financial performance.

Why Invest in Large Cap Mutual Funds?

- Lower Volatility: Large-cap funds are relatively stable compared to mid-cap and small-cap funds, making them a preferred choice for risk-averse investors.

- Long-Term Growth Potential: Despite short-term market corrections, historically, large-cap funds have delivered strong long-term returns.

- Benchmark Outperformance: Several large-cap funds have consistently outpaced benchmark indices, providing competitive returns.

Factors to Consider Before Investing

While past performance can be an indicator, investors should evaluate multiple factors before selecting a mutual fund, including:

- Expense ratio

- Fund manager’s track record

- Portfolio composition

- Investment horizon

- Risk tolerance

Investing in large-cap mutual funds in 2025 can be a prudent choice for those looking for stability and consistent growth. Market trends suggest that these funds will continue to play a crucial role in portfolio diversification. However, conducting thorough research and aligning investments with financial goals remains essential before making any investment decisions.