Highest Return Mutual Funds in the Last 10 Years – Large Cap (Bluechip) Fund Category

September 10, 2024 Mutual Fund

India’s bellwether indices, the Nifty 50 and BSE Sensex, have consistently reached new highs in recent years. This growth has been fuelled by India’s robust GDP growth aided by government policies related to infrastructure development, tax reforms, and a focus on domestic manufacturing, etc., that fostered a positive business environment. Subsequently, numerous large-cap stocks have scaled fresh peaks.

[Read: Sensex at 80,000! How to Approach Equity Mutual Funds Now]

India’s corporate segment too has registered healthy growth, driven by increased efficiency and cost-cutting measures.

The banking sector was among the top performers, benefiting from increased lending activity and improved asset quality. The IT sector has continued to thrive, driven by strong global demand for software services. Meanwhile, consumer-oriented companies benefited from the rising disposable incomes and increased consumption.

As a result, Foreign Institutional Investors (FIIs) are confident of India’s long-term growth story and have been steadily, but cautiously, buying into the Indian equity market, particularly in large-cap stocks.

Increased participation from retail investors, especially through the Systematic Investment Plans (SIPs) of mutual funds, has provided a steady stream of inflows in the market. Besides, attractive dividend yields offered by several large-cap companies have also attracted investors.

Consequently, Large Cap Funds have reported a remarkable growth in their NAVs over the years.

In this article, explore the highest return mutual funds in the last 10 years from the Large Cap Fund (Bluechip Fund) category, selected based on SIP returns.

Highest Return Large Cap Fund in the Last 10 Years #1: Nippon India Large Cap Fund

Launched in August 2007, Nippon India Large Cap Fund is a Large Cap Mutual Fund that has notably exceeded expectations, particularly in rising markets, and has consistently delivered superior returns compared to many peers that have been struggling to generate alpha. It was originally launched as a Large & Midcap Fund but was recategorised as a Large Cap Fund in 2018. The fund aims to identify stocks poised for substantial future growth. The fund has done exceptionally well in the last few years amid a broad-based market rally and a focus on high-growth stocks, and has found a place among the top-performing schemes in the category.

Performance of Nippon India Large Cap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 03, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Nippon India Large Cap Fund grew at an XIRR of 19.5% compared to a growth of 24.1% in its benchmark BSE 100 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 33,52,220.

Top holdings of Top holdings of Nippon India Large Cap Fund

Portfolio data as of July 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Nippon India Large Cap Fund usually holds a diverse portfolio of around 55-60 stocks. As of July 31, 2024, the fund held 64 stocks in its portfolio, with the top 10 stocks accounting for nearly 48.8% of its assets. The fund’s top stock holdings include popular bluechips such as HDFC Bank, Reliance Industries, ITC, ICICI Bank, and Infosys. Notably, the fund’s top 10 holdings comprise five stocks belonging to the Banking & Finance sector. In the last one year, Nippon India Large Cap Fund’s portfolio turnover has ranged 20%-45% of its assets, signifying low churning in the portfolio.

Highest Return Large Cap Fund in the Last 10 Years #2: ICICI Pru Bluechip Fund

Launched in May 2008, ICICI Pru Bluechip Fund is a renowned Large Cap Fund known for its persistent track record of delivering noteworthy returns to its investors over the long term. It focuses on identifying high-conviction quality stocks, which has helped it become the largest scheme in the category currently managing an AUM of Rs 62,717 crore. ICICI Prudential Bluechip Fund aims to create a diverse portfolio of large-sized and well-established companies, selected without any sector bias. The fund holds a value bias as it aims to identify high-growth potential stocks available at reasonable valuations. This strategy has enabled the fund to mitigate downside risk during uncertain and volatile market conditions, while it has also rewarded investors with above-average returns during market upswings.

Performance of ICICI Pru Bluechip Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 03, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, ICICI Pru Bluechip Fund grew at an XIRR of 18.8% compared to a growth of 16.7% in its benchmark Nifty 100 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 32,31,645.

Top holdings of ICICI Pru Bluechip Fund

Portfolio data as of July 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

As of July 31, 2024, ICICI Prudential Bluechip Fund held a well-diversified portfolio comprising 63 stocks. The top 10 stocks accounted for 50.6% of the fund’s total holdings and are spread across diverse sectors. The fund held higher exposure in index heavyweights such as ICICI Bank, Reliance Industries, L&T, HDFC Bank, and Infosys. Many of these names have been prominent holdings in the fund’s portfolio for well over 2 to 3 years now. ICICI Pru Bluechip Fund has high conviction in its stock holdings, and therefore, carries a low turnover ratio of around 25%.

Highest Return Large Cap Fund in the Last 10 Years #3: Baroda BNP Paribas Large Cap Fund

Incepted in September 2004, Baroda BNP Paribas Fund is a cautiously managed Large Cap Fund. The fund has a strong history of delivering above-average returns and outperforming the benchmark across different time frames since its inception. Baroda BNP Paribas Fund aims to follow the investment philosophy of ‘Growth at a Reasonable Price’ to select high-potential companies available at reasonable valuations. The fund has demonstrated commendable performance across diverse market conditions in the past, particularly during market corrections. Its focus on picking large-cap stocks having healthy balance sheets along with strategic exposure to mid caps has enabled it to deliver well on the returns front.

Performance of Baroda BNP Paribas Large Cap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 03, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Baroda BNP Paribas Large Cap Fund grew at an XIRR of 18.6% compared to a growth of 16.7% in its benchmark Nifty 100 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 32,00,967.

Top holdings of Baroda BNP Paribas Large Cap Fund

Portfolio data as of July 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Baroda BNP Paribas Large Cap Fund holds about 45-50 stocks in its portfolio. As of July 31, 2024, the fund held 50 stocks in its portfolio with the top 10 stocks forming 41.2% of its assets. The fund’s primary aim is to focus on companies that are market leaders, have healthy cash flows and sustainable long-term earnings growth. It is currently bullish on ICICI Bank, Reliance Industries, HDFC Bank, L&T, and TCS that carry allocation in the range of about 4-6%. The fund’s turnover ratio in the last one year has been around 60%, signifying moderate churning of the portfolio.

Highest Return Large Cap Fund in the Last 10 Years #4: Canara Robeco Bluechip Equity Fund

Launched in August 2010, Canara Robeco Bluechip Equity Fund is a prudently managed Large Cap Fund that has a past record of performing consistently well across various market phases. The fund registered strong growth compared to the benchmark and the category average on multiple occasions in the past, especially between 2018 and 2020, which helped it make it to the list of category outperformers over long-term time frames. Moreover, its superior long-term track record has helped it to get the attention of investors; enabling it to become one of the largest schemes in the category. Although Canara Robeco Bluechip Equity Fund may exhibit relatively muted growth in the short run, its long-term performance is encouraging.

Performance of Canara Robeco Bluechip Equity Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 03, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Canara Robeco Bluechip Equity Fund grew at an XIRR of 18.6% compared to a growth of 17.2% in its benchmark BSE 100 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 31,86,547.

Top holdings of Canara Robeco Bluechip Equity Fund

Portfolio data as of July 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Canara Robeco Bluechip Equity Fund usually holds a fairly diversified portfolio of about 45 to 55 stocks. As of July 31, 2024, the fund held 54 stocks in its portfolio spread across sectors. The top 10 stock holdings accounted for about 46% of the portfolio. Index heavyweights like ICICI Bank, HDFC Bank, Reliance Industries, Infosys, and Bharti Airtel currently find a place in the top portfolio holdings. A majority of these stocks have been part of the fund’s top holding for over two years now. The fund focuses on a ‘buy-and-hold’ investment approach and avoids frequent adjustments in the portfolio at the stock and sector level.

Highest Return Large Cap Fund in the Last 10 Years #5: Invesco India Largecap Fund

Launched in August 2009, Invesco India Largecap Fund aims to invest predominantly in growth stocks with exposure to few value opportunities. It also tactically invests up to 20% in stocks of mid-cap and small-cap companies. The fund has outperformed the benchmark and the category average on multiple occasions in the past, which has enabled it to generate healthy long-term returns. It has generated significant lead over the benchmark and majority of its peers in the last one year, which improved its long-term prospects. The fund frequently churns a portion of its portfolio to benefit from available market opportunities but has shown patience with several of its core stock holdings. It stays full invested in equities taking no cash calls.

Performance of Invesco India Largecap Fund

Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory
Data as of September 03, 2024
Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN) 

In the last 10 years, Invesco India Largecap Fund grew at an XIRR of 18.4% compared to a growth of 16.7% in its benchmark Nifty Midcap 250 – TRI. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) in the fund would now be valued at Rs 31,51,257.

Top holdings of Invesco India Largecap Fund

Portfolio data as of July 31, 2024
(Source: ACE MF, data collated by PersonalFN) 

Invesco India Largecap Fund holds about 45-50 stocks in its portfolio. As of July 31, 2024, the fund held 49 stocks in the portfolio with the top 10 stocks comprising around 45% of its assets. The fund’s core holdings include highly liquid names such as HDFC Bank, ICICI Bank, Reliance Industries, TCS, and Infosys. The fund has restricted allocation in each mid-cap and small-cap stock to under 2%. Its churning rate in the last one year has ranged between 70-90%, indicating relatively higher turnover compared to many of its peers.

Final thoughts

An expected positive economic outlook and healthy corporate balance sheet may continue to work in favour of the equity market. Moreover, the prospects of a rate cut by the US Federal Reserve may also result in fresh inflows in the Indian market by FIIs, taking them to new highs. However, potential risks may arise due to geopolitical tensions in various parts of the world, rising valuations, spike in inflation levels, slowdown in rural consumption growth, among other factors.

Large Cap Funds are known for their ability to offer stable growth and are generally considered less volatile than Mid Cap Funds and Small Cap Funds. This makes them a relatively safer option during uncertain and volatile times, such as the one we are witnessing now.

[Read: Do Large Cap Funds Make More Sense in An Overheated Equity Market?]

However, Large Cap Funds should be not be construed to be a risk-free option as they too are prone to market fluctuations. Thus, consider investing in Large Cap Funds only if you have a long-term investment horizon of at least 3-5 years.

Ensure that you select well-established Large Cap Funds that have consistently performed well across market phases and investment time frames compared to the benchmark and the category. Avoid chasing top-performing schemes of the past as their performance may not always sustain in the future.

Lastly, conduct a periodic review of the mutual funds in your portfolio to ensure that you are on the right path to achieving your set financial goals.

Watch this video to explore the top-performing mutual funds SIPs in the last 10 years:

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