Prior to investing in a mutual fund scheme, investors often examine the returns given by a scheme within a given time frame and compare the same with the corresponding schemes in the same category launched by other fund houses.
Typically, the schemes offering highest returns tend to draw a large number of investors, thus mounting the pressure on fund managers to continue to deliver high performance. Sometimes, the pace continues, whereas in some cases, it does not.
So, one should not assume that the historical returns of a mutual fund scheme will continue in the future as well.
ALSO READ: These 15 equity MF schemes delivered the best return in three years. Do you own any?
What are large cap mutual funds?
Large cap mutual funds refer to the schemes, which invest a minimum of 80 percent of assets in large cap stocks, as per the Sebi’s categorisation of mutual funds. And large cap stocks are the securities of those companies which are positioned between 1 to 100 when ranked as per market capitalisation.
Here we select the top-performing large cap mutual funds which have delivered over 40 percent return in the past one year.
| Large Cap funds | 1-year-return (%) |
| Quant Large Cap Fund | 56.31 |
| Bank of India Bluechip Fund | 49.09 |
| JM Large Cap Fund | 47.09 |
| Nippon India Large Cap Fund | 46.42 |
| ICICI Prudential Bluechip Fund | 41.80 |
| Invesco India Largecap Fund | 41.60 |
| ITI Large Cap Fund | 41.47 |
| Baroda BNP Paribas Large Cap Fund | 41.31 |
(Source: AMFI, returns as on April 4, 2024)
As we see in the table, there are eight large cap schemes which have delivered over 40 percent return in the past one year.
The top-performing schemes include Quant Large Cap Fund (56 percent), Bank of India Bluechip Fund (49 per cent), JM Large Cap Fund (47 per cent) and Nippon India Large Cap Fund (46 per cent), among others.
However, it is important to note that the past returns do not guarantee a scheme’s future returns. So, one must keep in mind an array of factors before deciding to invest in a scheme.
These include the category of scheme, reputation of the fund house, overall macroeconomic situation and importantly — investor's risk appetite, among others.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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Published: 08 Apr 2024, 12:11 PM IST
