5 Top-performing Large Cap Mutual Funds of 2024 in India Over the Last 5 Years
July 4, 2024 Mutual Fund
Large-cap stocks are on a roll. The Nifty 50 hit an all-time high, closing near 24,300 on July 03, 2024, while the Sensex brushed the milestone of 80,000 mark.
Some key factors fuelling the rally are strong GDP growth, robust corporate balance sheets, and recovery in consumption growth. And as the growth outlook continues to be positive with expectations of a normal monsoon and the government’s fiscal deficit under control, there may be further room for growth in large-cap stocks.
It is noteworthy that there are concerns about a potential bubble in certain pockets of mid and small-cap stocks, and therefore it is advisable for investors to approach the segment with caution.
Meanwhile, the Nifty 50’s current P/E ratio stands at around 23x, which is lower than the long-term average of 24.5x. The 12-month forward P/E ratio of around 21x is trading close to its historical average since 2019, according to RBI’s Financial Stability Report of June 2024. Thus, large-cap stocks appear to be better placed in terms of valuation compared to mid and small caps, offering a better margin of safety.
The Nifty 50 index is trading at all-time highs
Past performance is not an indicator for future returns.
Data as of June 28, 2024
(Source: ACE MF, data collated by PersonalFN)
Large Cap Funds are a convenient mode to get exposure to large-cap stocks. As mentioned by my colleague, Mr Rounaq Neroy, in his recent article, quite a few Large Cap Funds have come out of the shadows of underperformance in the last one year (based on rolling returns) with positive undercurrents.
Out of the 26 Large Cap Funds in India that have a track record of 5 years or more, 16 schemes delivered returns at a CAGR of 15% or more on a 5-year rolling return basis. The top-performing Large Cap Fund generated a CAGR of 17.7% during this period.
In this article, explore the top-performing Large Cap Mutual Funds of 2024 in India in the last 5 years.
Top-performing Large Cap Fund of 2024 #1: Canara Rob Bluechip Equity Fund
Performance of Canara Robeco Bluechip Equity Fund
| Scheme Name | CAGR (%) | Benchmark | CAGR (%) |
| Canara Rob Bluechip Equity Fund | 17.68 | BSE 100 – TRI | 15.42 |
Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of June 28, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Launched in August 2010, Canara Robeco Bluechip Equity Fund has a past record of performing consistently well across various market phases. The fund registered strong performance on multiple occasions in the past, especially between 2018 and 2020, which has helped it make it to the list of category outperformers. In the last five years Canara Robeco Bluechip Equity Fund generated returns at a CAGR of 17.7%, on a rolling return basis, while the benchmark BSE 100 – TRI grew 15.4% during this period. The fund managers’ strategy of sticking to index heavyweights that have been driving the index over the last few years has turned in its favour and paid off the investors with superior returns.
Top holdings of Canara Robeco Bluechip Equity Fund
Portfolio data as of May 31, 2024
(Source: ACE MF, data collated by PersonalFN)
HDFC Bank is currently the fund’s top stock holding, followed by other popular large-cap names such as ICICI Bank, Reliance Industries, L&T, and Bharti Airtel. In terms of sector, it consistently maintains higher exposure to Banking & Finance along with Infotech, Auto & Ancillaries, Pharma, Engineering, and Crude Oil, among others.
Top-performing Large Cap Fund of 2024 #2: Mahindra Manulife Large Cap Fund
Performance of Mahindra Manulife Large Cap Fund
| Scheme Name | CAGR (%) | Benchmark | CAGR (%) |
| Mahindra Manulife Large Cap Fund | 17.67 | NIFTY 100 – TRI | 14.79 |
Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of June 28, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Launched in March 2019, Mahindra Manulife Large Cap Fund aims to invest in market leaders and established businesses. The fund invests in a compact portfolio of about 40 stocks in which the fund manager has high conviction. It selects stocks by utilising a mix of the top-down and bottom-up approaches with a focus on alpha generation. Mahindra Manulife Large Cap Fund follows an active investment style and frequently churns a portion of its portfolio to benefit from various market opportunities. In the last five years, Mahindra Manulife Large Cap Fund generated returns at a CAGR of 17.7%, on a rolling return basis, compared to 14.8% delivered by its benchmark Nifty 100 – TRI.
Top holdings of Mahindra Manulife Large Cap Fund
Portfolio data as of May 31, 2024
(Source: ACE MF, data collated by PersonalFN)
The fund currently holds higher exposure to HDFC Bank, ICICI Bank, L&T, Reliance Industries, and Infosys. Sector-wise, the fund’s portfolio is inclined towards Banks, along with significant exposure to Infotech, FMCG, Crude Oil, Auto & Ancillaries, and Infrastructure.
Top-performing Large Cap Fund of 2024 #3: Baroda BNP Paribas Large Cap Fund
Performance of Baroda BNP Paribas Large Cap Fund
| Scheme Name | CAGR (%) | Benchmark | CAGR (%) |
| Baroda BNP Paribas Large Cap Fund | 17.55 | NIFTY 100 – TRI | 14.79 |
Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of June 28, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Launched in September 2004, Baroda BNP Paribas Large Cap Fund aims to follow the investment philosophy of Growth at a Reasonable Price (GARP) to select high-potential companies available at reasonable valuations. The fund aims to focus on companies that are market leaders, having healthy cash flows and sustainable long-term earnings growth. It seeks to actively shuffle sectoral holdings based on the economic conditions. This strategy has enabled the fund to significantly outperform the benchmark and the category average on multiple occasions in the past. In the last five years, Baroda BNP Paribas Large Cap Fund generated returns at a CAGR of 17.6%, on a rolling return basis, compared to 14.8% delivered by its benchmark Nifty 100 – TRI.
Top holdings of Baroda BNP Paribas Large Cap Fund
Portfolio data as of May 31, 2024
(Source: ACE MF, data collated by PersonalFN)
The fund’s top holdings comprise ICICI Bank, HDFC Bank, Reliance Industries, L&T, and TCS. In terms of sector, the fund prefers Banking, followed by Crude Oil, Auto & Ancillaries, Infotech, FMCG, and Infrastructure, among others.
Top-performing Large Cap Fund of 2024 #4: Nippon India Large Cap Fund
Performance of Nippon India Large Cap Fund
| Scheme Name | CAGR (%) | Benchmark | CAGR (%) |
| Nippon India Large Cap Fund | 17.39 | BSE 100 – TRI | 15.42 |
Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of June 28, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Originally launched as a Large & Mid Cap Fund in August 2007, Nippon India Large Cap Fund is now mandated to invest a major portion of its assets in large-cap stocks after its recategorisation in 2018. In the last five years, Nippon India Large Cap Fund’s NAV grew at a CAGR of 17.4% on a rolling returns basis, compared to a growth of 15.4% in its benchmark BSE 100 – TRI. Notably, Nippon India Large Cap Fund witnessed a lean phase between 2019 and 2020 as its bets in certain segments took time to pay off. However, the fund gained immensely from 2021 onwards when the fund’s high conviction calls in the Banking, Engineering, Manufacturing, Hotels, and PSU segments turned out to be rewarding.
Top holdings of Nippon India Large Cap Fund
Portfolio data as of May 31, 2024
(Source: ACE MF, data collated by PersonalFN)
The fund’s top holdings include HDFC Bank, Reliance Industries, ICICI Bank, ITC, and SBI. In terms of sector, the fund’s portfolio is skewed towards Banking & Finance, while it also holds diversification to FMCG, Crude Oil, Auto & Ancillaries, Infotech, and Power, among others.
Top-performing Large Cap Fund of 2024 #5: ICICI Pru Bluechip Fund
Performance of ICICI Pru Bluechip Fund
| Scheme Name | CAGR (%) | Benchmark | CAGR (%) |
| ICICI Pru Bluechip Fund | 17.01 | NIFTY 100 – TRI | 14.79 |
Past performance is not an indicator for future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of June 28, 2024
Returns are on a rolling basis and in %. Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Launched in May 2008, ICICI Prudential Bluechip Fund has created a successful track record of generating stable returns over the long run. With an AUM of Rs 55,459 as of May 31, 2024, ICICI Prudential Bluechip Fund is currently the largest scheme not just in the Large Cap Fund category but also among diversified equity mutual funds. In the last five years ICICI Pru Bluechip Fund’s NAV grew at a CAGR of 17% on a rolling returns basis. The fund focuses on identifying high-growth potential stocks available at reasonable valuations. With this strategy, the fund has displayed its ability to limit the downside risk during bearish market conditions, while it has also rewarded them with above-average returns during market rallies.
Top holdings of ICICI Pru Bluechip Fund
Portfolio data as of May 31, 2024
(Source: ACE MF, data collated by PersonalFN)
The fund’s prominent holdings include ICICI Bank, Reliance Industries, L&T, HDFC Bank, and Maruti Suzuki India. In terms of sector, its portfolio is spread predominantly across Banking, Crude Oil, Auto & Ancillaries, Infotech, Infrastructure, and Healthcare among others.
To conclude:
The stellar rally in mid and small-cap stocks has induced numerous investors to embrace risky investments while simultaneously shunning the stability and high liquidity of Large Cap Funds. However, one should remember that Large Cap Funds comprise well-established companies that can offer steady returns over the long run.
Investments in Large Cap Funds can offer better protection against the downside risk compared to Mid Cap Funds and Small Cap Funds, while they can also do well during market uptrends. Due to this characteristic, Large Cap Funds can ideally form part of the ‘Core’ portfolio of every investor.
That said, Large Cap Fund investments are not without risk; they too are prone to market fluctuations. Thus, one should have a long-term investment horizon of at least 3-5 years when investing in Large Cap Funds.
Watch this video to find out if Large Cap Funds make more sense in an overheated market:
Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.
This article first appeared on PersonalFN here
