Large Cap Mutual Funds

Large Cap Mutual Funds

Large Cap Mutual Funds is the investment option offered by mutual fund companies that invest in stocks with higher market capitalization. These mutual funds offer higher consistent returns, the large-cap mutual funds are offered by the companies who have a stable and good track record in the market. Large-cap mutual funds operated by the companies which are predominantly stay top in the market, when compared with the small or mid companies these companies stay stable and have good track records. These mutual funds are the best investment option for first-time equity investors, and as it offers low or no risk it would be the best option for risk-averse investors.

What are the Features of Large-Cap Mutual Funds?

  • Offers higher returns.
  • Minimal or No Risk
  • Stable investment funds
  • Good Management
  • Provides evaluation of the existing data.

What are the points to be considered before investing in Large Cap Funds?

Before investing in large-cap mutual funds, an investor should consider some points, so he/she may not be a victim at last, as these funds depend on the performance of the market, there may be some chances that the companies may face the market risk, so an investor should check for the age of the company, the risk profile. company goals, investment horizon, etc. Apart from these the investor should check for the below points before going for investing in large-cap funds.

  • The investor should recognize the suitable investment option.
  • Check the past performance of the funds.
  • Know the experience of the fund manager.
  • Tract the expense ratio
  • Notice the exit load.

How to select the best Large-Cap Mutual Funds?

The below-mentioned points help an investor to evaluate the best Large-Cap Mutual Funds, they are-

The Sharpe Ratio:

It helps you to measure the risk adjustment during the returns, the higher the Sharpe ratio the better is the performance.

Sharp Ratio=(Mean Porfolia Return-Risk Free Rate)/(Standard Deviation Portfolio Return)

Standard Deviation:

Standard Deviation is directly proportional to the volatility of the annual rate return, higher the standard deviation higher the price range vice versa.


  • Beta represents the fund's sensitivity to tie in the market.
  • Beta = 1.0 (Volatility equal to the benchmark of the market)
  • Beta = 0.90/Less (10% less volatile)
  • Beta = 1.40 (40% to the benchmark)

R-Squared -

It indicates the percentage of the returns that fall in line with respect to the benchmark returns. If the R-Squared is 100% it provides higher security.

Alpha -

it indicates the fun manager ability or performance to estimate the profits. the Alpha can be equal to 1.0 or less. Higher the alpha higher the manager's ability to provide profits.

What are the Advantages of Large-Cap Mutual Funds?

  • These Mutual funds offer higher stability.
  • Regular payments of the dividends
  • Check for the financial details to decide.

What are the disadvantages of the Large- Cap Funds?

The Underlined Stock is limited, it tends to higher risk Sometimes due to the fluctuation in the market performance the returns generated may be lower than the mid-cap funds. If the fund manager takes a decision that not favourable with the market performance, it may make you little or no control over the portfolio.

What are the Top Large- Cap Fund?

Based on the market performance, here is the list of top-performing Large-cap fund investing platforms.

  • Axis Focus 25 Fund
  • Axis Blue chip Fund
  • HDFC Index Fund Sensex Plan
  • Canara Robeco Blue chip Equity Fund
  • Nippon India Large Cap Fund.

Bottom Line:

Large Cap Mutual Funds are subject to market risk, before investing in mutual funds, check with the expert to make the right decision to earn higher returns.