Best mutual funds: These 7 large cap schemes beat the benchmark in past 1, 3 and 5 years

When a retail investor opts for a mutual fund scheme, they tend to give a considerable priority to the returns delivered by the scheme vis-à-vis other schemes in the category.

For instance, when you want to invest in a large cap mutual fund, it is rational to examine the past returns delivered by the schemes across mutual fund houses to make an attempt towards gauging their long-term potential.

Although investment experts often caution investors against deciding to invest in a scheme solely on the basis of its past returns, also known as historical returns, it is not wise to overlook this factor either.

Here we filter out a number of large cap mutual funds based on their past returns across tenures such as one, three and five years. A mutual fund scheme can perform well for a year coincidentally, but consistently performing well for a number of years exemplifies a scheme’s long-term potential.

Large cap funds

Large cap mutual funds are the ones which invest 80 percent of their assets in large cap stocks, according to the Sebi’s categorisation of mutual funds. And large cap stocks refer to the securities of companies, which are ranked from 1 to 100 when sorted on the basis of market capitalization.

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There are seven mutual funds in the large cap category which have managed to beat the benchmark in the past one, three and five years.

These include Nippon India Large Cap Fund, Tata Large Cap Fund and ICICI Prudential Bluechip Fund.

(Source: AMFI; returns as on April 16, 2024)

There are a few mutual fund schemes which have done well in the past one year but their regular returns did not manage to beat the benchmark returns in the past three and five years.

These include DSP Top 100 Equity Fund, Bank of India Bluechip Fund, HSBC Large Cap Fund, Quant Large Cap Fund and Taurus Large Cap Fund.

It is vital to mention here that the past returns of a mutual funds do not guarantee its future returns just as the past year’s performance of a stock is no assurance of its future performance.

Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.