Less than 50% of large cap mutual fund schemes beat benchmark returns over 5 years

Large-cap mutual fund schemes are which invest at least 80% of their investment in large-cap stocks. Large-cap stocks refer to the securities of companies which are positioned among the top 100 companies when ranked based on their market capitalisation.

There are 31 mutual fund schemes, which fall in the category of large-cap funds with total AUMs amounting to ₹3.45 lakh crore, as on June 30, 2024. Out of these 31 mutual fund schemes, there are only 12 schemes that managed to beat their respective benchmark in the last five years. The large-cap category has two benchmarks NIFTY 100 TRI and BSE 100 which have yielded returns of 18.21% and 17.17% in the last 5 years respectively. The category average returns stand at 17.66% for 5 years.

Let’s explore the top five large-cap funds beating their respective benchmark

ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund, previously known as ICICI Prudential Focused Bluechip Equity Fund is an equity fund managed by ICICI Prudential Mutual Fund, launched on May 5, 2008. It tracks the NIFTY 100 TRI benchmark.

As of May 31, 2024, it has a total asset value of ₹55,459.29 crore. The fund's total expense ratio (TER) is 1.49%, with an exit load of 1% if redeemed within a year. The NAV on July 9, 2024, is ₹106.05.

In the last 5 years, it has achieved a compound annual growth rate (CAGR) of 20.20%, compared to the benchmark's 18.21%.

If you had invested ₹1,000 monthly via SIP over the last 5 years, your corpus would now be ₹1,12,403. A lump sum investment of ₹10,000 five years ago would have grown to ₹25,088.

Nippon India Large Cap Fund

Nippon India Large Cap Fund (formerly Reliance Large Cap Fund-Growth Plan) is an open-ended equity scheme, managed by Nippon India Mutual Fund. Launched on August 8, 2007, it invests in large-cap stocks and uses the BSE 100 as its benchmark.

As of May 31, 2024, the fund has a total asset value of ₹26,925.1 crore with a Total Expense Ratio of 1.62%. The fund's NAV as of July 9, 2024, is ₹88.04.

Since the last 5 years, the fund has delivered a CAGR of 20.17%, compared to the benchmark's 17.17%. If you had started a SIP of ₹1,000 five years ago, your corpus would now be ₹1,19,897, and a lump sum investment of ₹10,000 made five years ago would have grown to ₹25,062.

Baroda BNP Paribas Large Cap Fund

Baroda BNP Paribas Large Cap Fund, managed by Baroda BNP Paribas Mutual Fund, was launched on January 1, 2013. It tracks the NIFTY 100 TRI benchmark and has a total expense ratio (TER) of 2.07% as of May 31, 2024.

The fund has total assets of ₹1,965.74 crore with an exit load of 1% if redeemed within 30 days. The NAV as of July 9, 2024, is ₹223.43.

Since the last 5 years, the fund has achieved a CAGR of 19.95%, compared to its benchmark's 18.21%. If you had invested ₹1,000 monthly through a SIP over the last five years, your corpus would now be ₹1,09,159. Alternatively, a lump sum investment of ₹10,000 made five years ago would have grown to ₹24,830.

JM Large Cap Fund

JM Large Cap Fund, formerly known as JM Equity Fund-Growth is managed by JM Financial Mutual Fund. Launched on April 1, 1995, it focuses on large-cap stocks and follows the BSE 100 benchmark.

As of May 31, 2024, the fund has a total asset value of ₹191.85 crore, with a total expense ratio (TER) of 2.41%. The fund charges an exit load of 1% if redeemed within 30 days. As of July 9, 2024, the NAV is ₹163.49.

The fund has delivered a compound annual growth rate (CAGR) of 19.77% in the last 5 years, compared to the benchmark's 17.17%. If you had invested ₹1,000 monthly via SIP over the last 5 years, your corpus would now be ₹1,11,373, and a lump sum investment of ₹10,000 made 5 years ago would have grown to ₹24,664.

Canara Robeco Blue Chip Equity Fund

Canara Robeco Blue Chip Equity Fund (previously known as Canara Robeco Large Cap+ Fund) was launched on August 5, 2010, by Canara Robeco Mutual Fund. It benchmarks against the BSE 100 index and has a Total Expense Ratio (TER) of 1.67% as of May 31, 2024.

The fund's NAV as of July 9, 2024, is ₹60.45. With total assets of ₹12,976.74 crore and it imposes an exit load of 1% if redeemed within a year.

The fund has delivered a CAGR of 19.3% in the last 5 years, compared to the benchmark's 17.17%. If you had made a SIP of ₹1,000 monthly for the past 5 years, your corpus would be ₹1,02,532. A lump-sum investment of ₹10,000 made 5 years ago would now be worth ₹24,170.

The returns calculated in the above funds are from July 09, 2019, to July 09, 2024.

The following table shows all large-cap funds beating their respective benchmark in the last five years with historical returns:

Source: AMFI

Bottomline The key takeaway for mutual fund investors is to stick to long performing mutual fund scheme and let the compounding take its own course. In the log run, achieving desired goal is more important than beating benchmark indices.