Learn the best Large cap fund in the industry
Large-cap funds are a type of mutual fund that invests in stocks of companies with the largest market capitalizations. These companies are typically well-established and have a long history of profitability.
Large-cap funds are generally considered to be less risky than other types of equity funds, such as mid-cap and small-cap funds. This is because large-cap companies are more likely to be able to weather economic downturns. However, they also tend to offer lower potential returns than other types of equity funds.
Here are some of the benefits of investing in large-cap funds:
- Lower risk: Large-cap stocks are generally less volatile than stocks of smaller companies. This means that the value of your investment is less likely to fluctuate significantly over time.
- Steady returns: Large-cap companies have a long history of paying dividends to shareholders. This can provide you with a steady stream of income from your investment.
- Diversification: Large-cap funds typically invest in a variety of different companies across different sectors of the economy. This can help to reduce the risk of your investment being affected by a downturn in any one sector.
This category faces the biggest competition with the index funds with index fund companies always promoting their funds as if they do not carry risk, which is not the true case, the index has the same amount of risk as these funds.
| Fund Name | Year Of Inception | Fund rating ( Crisil rated ) | Portfolio Size ( In Cr ) | Expense ratio | PE ratios |
| ICICI Pru blue chip fund | 2008 | 5 | 54,904.23 | 1.49 | 17.01 |
| Nippon India large cap fund | 2007 | 5 | 26,137.65 | 1.61 | 18.40 |
| JM large cap fund | 1995 | 5 | 144.17 | 2.41 | 15.36 |
| HDFC top 100 fund | 1996 | 4 | 33,170.08 | 1.62 | 14.53 |
| Aditya birla Frontline equity | 2002 | 3 | 27,192.15 | 1.66 | 17.70 |
| Canara Robeco Bluechip Equity fund | 2010 | 3 | 12,830.12 | 1.69 | 17.66 |
| Kotak Blue chip fund | 1998 | 3 | 8,027.99 | 1.76 | 20.44 |
| SBI blue chip Fund | 2013 | 2 | 45,410.51 | 1.53 | 24.12 |
| Axis blue chip fund | 2010 | 1 | 33,351.61 | 1.56 | 17.92 |
| Mirae asset large cap fund | 2008 | 1 | 37,631.07 | 1.53 | 19.98 |
| Bank of india Bluechip cap fund | 2021 | – | 144.86 | 2.46 | 18.65 |
| Quant Large cap fund | 2022 | – | 997.48 | 2.17 | 20.53 |
ICICI Pru blue chip fund : ICICI Pru blue chip fund is one of the large funds of the category , 5 star rated fund. The has expense ratio in line with the category and Low PE of 17.
Nippon India large cap fund : The fund is a 5 star rated fund. The fund size is not that large. The fund expense ratio is a bit on the higher side because of the small size. Decent PE of 18.
JM large cap fund : It is one of the oldest funds in the category with 5 star rating. The fund size is very small, just 144 cr. Since the size is small the expense ratio is 2.41 and PE very low at 15.36.
HDFC top 100 fund : It’s another oldest fund of the category , and is rated 4 star. The fund has a decent fund size. The Expense ratio is in line with the category. The fund has the lowest PE in the category.
Aditya birla Frontline equity : Once a darling of all the investment advisors , the fund now is rated 3. Fund size is decent and not too large. Expense ratio in line with category. PE of 17.70 is also decent.
Canara Robeco Bluechip Equity fund: The fund was launched in 2010, so fairly new in the category is now rated 3 star. Fund size is not big. Expense ratio is a bit high . PE of 17.66 Is decent.
Kotak Blue chip fund: Is another old fund, currently rated as 3. Not a big size fund. The expense ratio is a bit high at 1.76. The PE is also high of 20.44.
SBI blue chip Fund : This is the second largest fund of the category as the name and distribution muscle of SBI can be seen. The fund is just 2 star rated. Size of above 45,000 cr. Very low expense ratio in the category. The PE of 24.2 seems in line with the index and a bit of concern.
Axis blue chip fund : Fund made entry in 2010, is currently rated as 1 star. The fund has a very decent size , as it was also favoured by a lot of people. Low expense ratio of 1.56 . The fund PE 17.92 is very decent.
Mirae asset large cap fund : Made its debut in 2008, the fund is rated as 1. The fund has a very decent size in the category and was also favoured by lot advisors. Fund has a low expense ratio. PE 19.98 is a bit high.
Bank of India Bluechip cap fund : A very new entrant to the category in 2021 , launched during covid times, so the fund is still not rated. Very small size of just 144 cr. Of Course the expense ratio is very high. The PE is at 18.65 is decent.
Quant Large cap fund : Launched in 2022, it’s the latest one in the category. Not rated yet. Small fund size of about 997.48. Expense ratio is high of 2.17. High PE of 20.53
Trailing Returns :
1 Year Trailing return
First quartile,> 46% as always is taken by none other than Quant Large Cap fund
2nd quartile, 44-46% we have BOI Bluechip fund and JM Large Cap fund.
3rd quartile , 35-40%, ICICI Pru Bluechip fund and Nippon India Large cap fund
4th quartile, 30-35%, HDFC Top 100 fund, Kotak Bluechip fund, Aditya Birla SL Frontline Equity, Canara Robeco Bluechip Equity Fund.
5th quartile 25-30%, Axis bluechip fund , SBI blue Chip fund
6th quartile 20-24%, Mirae asset Large cap fund
3 Year Trailing Return
1st Quartile, >24% Nippon Large cap fund took lead in the last 3 years
2nd quartile 20% -24% , The lead was taken by JM large cap fund, ICICI Pru Bluechip fund
3rd quartile, 17%-20%, HDFC Top 100 fund, ABSL Frontline Equity fund
4th quartile, 14%-17%, Canara Robeco Bluechip Equity Fund, Kotak Bluechip fund, SBI blue Chip fund
5th Quartile, 11%-14% , Axis Blue chip Fund, Mirae Asset Large cap fund.
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
5 years trailing returns
1st quartile , >19%, ICICI Pru BlueChip fund, Nippon India Large cap fund.
2nd quartile, 18%-19%, JM large cap fund, Canara Robeco Bluechip Equity Fund and Kotak Bluechip fund
3rd Quartile, 16%-18%, HDFC Top 100 fund, SBI blue Chip fund, ABSL Frontline Equity fund
4th quartile , 14%-16%, Axis bluechip fund, Mirae asset Large cap fund
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
10 Years Trailing returns
1st quartile, >15% , ICICI Pru BlueChip fund, Nippon India Large cap fund.
2nd quartile > 14.5%-15%, Mirae asset Large cap fund and SBI blue Chip fund
3rd quartile,14%-14.5%, Canara Robeco Bluechip Equity Fund and Kotak Bluechip fund
4th quartile, 13.5%-14%, Aditya Birla SL Frontline Equity
5th Quartile, 13%-13.5%, HDFC Top 100 fund, JM Large Cap fund and Axis Blue chip Fund
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
The category has been able to deliver results for the last 10 years in a range of 15%, thus the funds taken under consideration have delivered quality returns to the customer.
Rolling returns :
We have considered rolling returns of 3 years since 2010 , BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year so they could not be part of the rolling returns.
15% Rolling returns
Leading the category was Mirae Asset large was most consistent with 53.9% of times and very less in negative zone, so the fund seems very stable.
Next ICICI Pru Bluechip fund, Nippon India Large cap and SBI blue chip 46-48% of times , Nippon India Large cap was in negative range for about 6% of times . SBI Blue chip fund and ICICI Pru Bluechip Equity were 2.5% of time and 1.5% of times.
Maintaining 41%-43% of times ABSL Frontline Equity, Canara Robeco Bluechip fund and Kotak Blue chip, Canara Robecco was in negative zone for just 0.03 times , Kotak Blue chip and ABSL Frontline Equity was negative for about 3% of times.
38% – 39 % times was Axis Bluechip fund, HDFC Top 100 Fund , axis blue chip was never negative in the period and HDFC was 7.12% of times negative.
JM Large cap fund could maintain this return for just 31% of times. And it was negative 7% of the time .
>12% Rolling returns
When considering the returns of large cap fund we look at the return greater than 12 % so let’s see how stable were the returns in this category funds
Mirae Asset Large Cap Fund was most stable and delivered for 73.88 % in this zone
Maintained 65% Canara Robeco Bluechip and ICICI Pru BlueChip Fund
61%-62% was maintained by 3 funds Nippon India Large cap fund, SBI bluechip fund and Axis Bluechip fund.
58%- 60% Kotak Bluechip fund and ABSL Frontline Equity fund
HDFC top 100 fund could maintain it for 54.2% and JM large Cap fund 45.41 % of times
Less than 8%
The worst fund was JM Large cap fund 35.18 times.
Kotak Blue chip was next with 23% of times in 3 year rolling period
20%-22% of times in this range is Nippon India Large cap fund, ABSL Frontline Equity and HDFC Top 100 Fund
SBI blue chip was in this range for 19.88 times.
ICICI was in this range for about 15% of times thus could avoid low returns
Most successful in this category was Mirae Asset Large cap, Axis Blue Chip and Canara Robeco Bluechip fund; they were just 13 % times below 8% of returns.
VS benchmark :
| Fund Name | 1-Yr Ret (%) | 3-Yrs Ret (%) | 5-Yrs Ret (%) | 10-Yrs Ret (%) |
| ICICI Pru blue chip fund | 38.86 | 20.78 | 19.11 | 15.1 |
| Nippon India large cap fund | 39.71 | 24.13 | 19.44 | 15.92 |
| JM large cap fund | 45.2 | 21.17 | 18.73 | 13.23 |
| HDFC top 100 fund | 34.91 | 19.78 | 16.59 | 13.43 |
| Aditya birla Frontline equity | 32.11 | 17.25 | 17.07 | 13.76 |
| Canara Robeco Bluechip Equity fund | 30.71 | 15.43 | 18.37 | 14.37 |
| Kotak Blue chip fund | 33.34 | 16.57 | 18.04 | 14.48 |
| SBI blue chip Fund | 26.03 | 16.36 | 16.84 | 14.71 |
| Axis blue chip fund | 27.25 | 11.26 | 14.33 | 13.16 |
| Mirae asset large cap fund | 24.31 | 13.54 | 15.11 | 14.83 |
| Bank of india Bluechip cap fund | 44.84 | – | – | – |
| Quant Large cap fund | 48.5 | – | – | – |
| NIFTY 100 TRI | 32.82 | 16.49 | 16.94 | 14.02 |
Another important aspect where the index funds have challenged the active managed large cap funds. Lets us check if its is myth or are index fund better
1 Year Vs benchmark
Nifty 100 TRI in last 1 year has delivered returns of 32.82%
First quartile,>at 46% as Quant Large Cap fund beat the index by a huge margin in the last 1 year.
2nd quartile , 44-46% of the BOI Bluechip fund and JM Large Cap fund again were able to beat the index .
3rd quartile , 35-40%, ICICI Pru Bluechip fund and Nippon India Large cap fund , did beat comfortably but they could quite below in returns of the new entrants.
4th quartile, 30-35%, HDFC Top 100 fund, Kotak Bluechip fund were very close to index.
Axis bluechip fund , SBI blue Chip fund, Aditya Birla SL Frontline Equity, Canara Robeco Bluechip Equity Fund, Mirae asset Large cap fund could not beat the index.
3 Year Trailing Return
1st Quartile, >24% Nippon Large cap fund had a very big lead from the index which delivered 16.49 % of returns.
2nd quartile 20% -24% , next by JM large cap fund, ICICI Pru Bluechip fund were again quite ahead in the returns.
3rd quartile, 17%-20%, HDFC Top 100 fund, ABSL Frontline Equity fund did beat index .
Canara Robeco Bluechip Equity Fund, Kotak Bluechip fund, SBI blue Chip fund,Axis Blue chip Fund, Mirae Asset Large cap fund could not beat the index.
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
5 years trailing returns
1st quartile , >19%, ICICI Pru BlueChip fund, Nippon India Large cap fund could beat index comfortably which delivered 16.94%
2nd quartile, 18%-19%, JM large cap fund, Canara Robeco Bluechip Equity Fund and Kotak Bluechip fund also had a good margin lead on index.
HDFC Top 100 fund, SBI blue Chip fund, ABSL Frontline Equity fund, Axis bluechip fund, Mirae asset Large cap fund lost to index in the 5 year period.
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
10 Years Trailing returns
1st quartile, >15% , ICICI Pru BlueChip fund, Nippon India Large cap fund were close to the index but still above the index which delivered just 14.02% by at least 1% margin.
2nd quartile > 14.5%-15%, Mirae asset Large cap fund and SBI blue Chip fund were also above the index.
3rd quartile,14%-14.5%, Canara Robeco Bluechip Equity Fund and Kotak Bluechip fund were above the index but not by a big margin.
Aditya Birla SL Frontline Equity ,HDFC Top 100 fund, JM Large Cap fund and Axis Blue chip Fund could not beat the index.
BOI Bluechip fund and Quant Large Cap fund do not have history to check beyond 1 year.
General observation :
The myth that Large caps have not been able to beat the index is a false claim because we could see some very good index beating returns. So it still makes sense to be part of the winning funds and get great returns. There is some divergence in performance of a few funds when we see the long term vs short term performance. Which is a reason we need to understand why such a thing happened. Let us delve more and understand the same.
Ratios:
| Fund Name | Alpha | Beta | Std deviation | Sharpe Ratio | Sortino Ratio |
| ICICI Pru blue chip fund | 4.26 | 0.87 | 11.28 | 1.18 | 2.29 |
| Nippon India large cap fund | 6.18 | 0.97 | 12.42 | 1.31 | 2.36 |
| JM large cap fund | 4.57 | 0.90 | 12.15 | 1.15 | 2.11 |
| HDFC top 100 fund | 3.14 | 0.93 | 12.11 | 1.08 | 1.9 |
| Aditya birla Frontline equity | 0.67 | 0.92 | 11.64 | 0.88 | 1.63 |
| Canara Robeco Bluechip Equity fund | -0.52 | 0.89 | 11.41 | 0.77 | 1.43 |
| Kotak Blue chip fund | 0.21 | 0.91 | 11.55 | 0.84 | 1.69 |
| SBI blue chip Fund | 0.04 | 0.88 | 11.31 | 0.81 | 1.9 |
| Axis blue chip fund | -5.01 | 0.97 | 12.82 | 0.40 | 0.82 |
| Mirae asset large cap fund | -1.88 | 0.87 | 11.18 | 0.65 | 1.17 |
| Bank of india Bluechip cap fund | 0 | 0 | 0 | 0 | 0 |
| Quant Large cap fund | 0 | 0 | 0 | 0 | 0 |
ICICI Pru blue chip fund : The fund has generated a decent Alpha, and risk adjust sharpe ratio as per category is decent. The fund has a beta of 0.87 and std deviation of 11.28 , which shows the fund is very stable. Fund has a great downside protection ratio.
Nippon India large cap fund : The fund has a great alpha 6.8 in the category and the sharpe ratio is great as per the category. But the funds beta and volatility is a bit high compared to the category. The fund has good downside protection.
JM large cap fund : Great Alpha of 4.57 and decent sharpe ratio of 1.31. The fund seems a bit volatile at beta of 0.90 and std deviation of 12.15%. The downside protection seems a bit low.
HDFC top 100 fund : Decent alpha generation 3.14 and risk adjusted return sharpe at 1.08 . The fund seems a bit volatile with a beta of 0.93 and std. deviation of 12.11. The fund on downside protection seems low.
Aditya Birla Frontline equity : Low Alpha and risk adjusted return below 0.88. The fund is highly correlated to the market with beta at 0.92. Std deviation of the fund is low which shows fund results have been consistent. Very low downside risk protection for the fund.
Canara Robeco Bluechip Equity fund: Negative alpha shows fund is not able to perform above benchmark . Risk adjusted returns less than 1. Fund stability is great beta 0.89 and std deviation of less than 12. Sortino is not great.
Kotak Blue chip fund: Very low alpha generation , risk adjusted return is also low. Beta is 0.91 so the fund has a good correlation to market. Again market downside protection is limited.
SBI blue chip Fund : Close to zero alpha and very low risk adjusted returns. Very great stability. Sortino is again on the lower end.
Axis blue chip fund : Fund is negative alpha. Low risk adjusted returns. High volatility , high market correlation at beta 0.97 and std deviation at 12.82 . Sortino ratio is low.
Mirae asset large cap fund : Negative alpha, Low sharpe ratio. Very stable fund with beta of 0.87 and std deviation 11.8. A low downside protection.
Bank of India Bluechip cap fund : Very new fund , so no ratios can be defined.
Quant Large cap fund : Very new fund , so no ratios can be defined.
Fund managers Longevity :
ICICI Pru blue chip fund : The fund is being managed by 3 fund managers , one of them is deputy CIO of the ICICI Pru amc who is managing the fund for about 6 years now. Other managers are 3 and 2 years old in the fund.
Nippon India large cap fund : The fund is again managed by 3 fund managers, One of them being deputy CIO of Nippon AMC. and he has been managing the fund for the last 17 years. Another manager is head of equity research he has been managing for the last 3 years.
JM large cap fund : The fund is being managed by 3 fund managers, one is MD and CIO of AMC. So the team is very experienced.
HDFC top 100 fund : The fund has seen recent changes in the fund manager with new fund managers now managing the funds for 2 years . They have considerable experience spanning more than 10 years.
Aditya Birla Frontline equity : The fund has been managed by CIO of the AMC for the last 19 years. Another fund manager was added just 2 years ago but he is already occupied with lots of other funds.
Canara Robeco Bluechip Equity fund: Is being managed by the head of equities of AMC for the last 8 years he is also occupied with a lot of other funds. The other fund manager has been with the fund for 3 years and he has more than 15 years of experience in the industry.
Kotak Blue chip fund: The fund has been taken over by new fund managers in the last 2 years. One the fund manager is part of the group and has been managing a lot of funds in the AMC. The fund manager has recently started managing the fund.
SBI blue chip Fund : New fund managers have been appointed for the fund who have just taken control of the fund .
Axis blue chip fund : The fund is being managed by 3 fund managers . The longest fund manager has been managing the fund for the last 8 years. The other 2 fund managers have been inducted in the fund in the last 1 year.
Mirae asset large cap fund : The fund is currently managed by just one fund manager, who has been managing the strategy for the last 5 years.
Bank of India Bluechip cap fund : New fund with a fund manager who has been in industry for the last 12 years, the fund has been in existence for 3 years but the fund manager has been changed once.
Quant Large cap fund : 4 fund managers to manage the fund , With Mr Sandeep Tandon being the fund manager. Though the managers have a lot of portfolios to manage.
Portfolio :
| Fund Name | Strategy | Top Sectors | Top Stock | No of Stocks | Portfolio Churn | Caps Allocation |
| ICICI Pru blue chip fund | Growth | Financial : 22.4 Energy : 14.14 Automobile : 10.55 Construction: 8.02 | ICICI Bank Ltd. : 8.19 Reliance Industries Ltd. : 7.43% Larsen & Toubro Ltd. : 6.80 HDFC Bank Ltd. : 4.94 | 68 | 27% | Large Cap : 81.58% Mid Cap: 8.85% Small Cap : Others :8.86% |
| Nippon India large cap fund | Growth | Financial : 32.78 Energy : 13.71 Consumer Staples : 9.78 Services : 7.57 | HDFC Bank Ltd. : 9.67 Reliance Industries Ltd. : 7.76 ICICI Bank Ltd. : 6.12 ITC Ltd. : 5.82 | 58 | 47% | Large Cap:83.62%Mid Cap:8.92% Small Cap: 6.72% Others:0.74% |
| JM large cap fund | Momentum | Financial : 23.65 Energy : 11.1 Automobile : 9.9 Metals & Mining : 9.74 | L&T Limited : 5.70 HDFC Bank Limited 4.72 Grasim Industries Limited 4.47 State Bank of India 4.22 Hindalco Industries Limited 4.06 Axis Bank Limited 4.00 | 42 | 103% | Large Cap: 77.23% Mid Cap : 8.35% Small Cap : 6.87% Others : 7.54% |
| HDFC top 100 fund | GARP | Financial : 33.45 Energy : 12.72 Consumer Staples: 8.17 Technology : 8.12 | ICICI Bank Ltd. 9.75 HDFC Bank Ltd 8.91 Larsen and Toubro Ltd. 6.17 Reliance Industries Ltd. 5.99 NTPC Limited 5.86 | 46 | 16% | Large Cap : 97.71% Mid Cap : 1.83% Others : 0.46% |
| Aditya birla Frontline equity | Growth | Financial : 30.38 Energy : 9.95 Automobile : 8.96 Technology :7.81 | HDFC Bank Ltd. : 8.28 ICICI Bank Ltd : 7.82 Reliance Industries Ltd. : 5.66 | 82 | 45% | Large Cap: 83.99% Mid Cap : 7.99% Small Cap : 4.85% Others : 3.15% |
| Canara Robeco Bluechip Equity fund | Momentum | Financial : 28.51 Automobile : 9.34 Energy : 9.06 Technology : 8.98 | HDFC Bank Ltd. : 8.25 ICICI Bank Ltd. : 7.56 Reliance Industries Ltd. : 6.28 | 55 | 27% | Large Cap : 89.24% Mid Cap : 7.86% Debt, Cash & Others : 2.90% |
| Kotak Blue chip fund | GARP | Financial: 24.42 Automobile: 12.58 Energy: 11.14 Technology : 9.64 | HDFC Bank Ltd. : 6.61 ICICI Bank Ltd. : 6.54 Reliance Industries Ltd: 5.52 Larsen & Toubro Ltd. : 4.22 | 61 | 13% | Large Cap: 79.3% Mid Cap: 15.4% Small Cap : 2.35% Others: 3.0% |
| SBI blue chip Fund | Growth | Financial Services: 27.42 Automobile : 14.54 FMCG : 9.39 IT : 6.49 | HDFC Bank Ltd : 7.31 ICICI Bank Ltd. 7.05 -Larsen & Toubro Ltd. 4.94 ITC Ltd. 4.65 | 51 | 17% | Large Cap : 79.69 Midcap: 14.73 Others: 5.58% |
| Axis blue chip fund | Growth | Financial services- 29.52 Automobiles and components – 10.08 Consumer Services – 9.21 Oil and Gas- 7.66 | ICICI Bank Limited 8.22% HDFC Bank Limited 7.72% Reliance Industries Limited 6.92% Avenue Supermarts Limited 5.56% | 46 | 26% | Large Cap: 91.27% Mid Cap: 2.0% Others : 6.72% |
| Mirae asset large cap fund | GARP | Banks – 30.39% IT – 11.17% Petroleum Products : 7.81% FMCG – 5.08% | HDFC 9.79% ICICI Bank Limited 8.15% Reliance Industries Limited 7.82% Infosys Limited 6.02% | 66 | 22% | Large Cap : 84.42% Mid Cap : 9.71% Small Cap : 5.08% Others: 0.78% |
| Bank of india Bluechip cap fund | Momentum | Financial : 24.23 Automobile: 10.42 Capital Goods : 10.19 Energy :10.05 | HDFC Bank Ltd. : 6.34 State Bank of India : 5.79 Reliance Industries Ltd.: 5.29 NTPC Ltd. : 4.76 | 45 | 55% | Large Cap : 83.75% Mid Cap: 8.56% Small Cap : 5.37% Others : 2.32% |
| Quant Large cap fund | Momentum | Financials : 27.3 FMCG : 22.4 Power : 15.4 O&G : 9.4 | HDFC Bank Ltd : 9.41 RIL : 9.36 Tata Power Co. Ltd. : 7.78 Adani Power Ltd. : 7.65% | 31 | 174% | Large cap : 96.3 Money Market : 3.7 |
As in line with the index the financial makes the highest contribution to the funds and HDFC makes a major chunk of that allocation. IT allocation is missing in all the funds.
Conclusion:
Large cap funds have a very long history. With a lot old fund houses and new fund houses competing in the space. The sector have completely changed in the todays scenario. Funds which could do so have emerged winner the others lagged. The previous winners have lost relevance in todays context.
And the investors who are looking to invest in this category , again my advise take help of your advisor or wealth manager
You can reach us to help you design the bets fund portfolio , so that you get best results according to your need and assessment.( you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
Do set you asset allocation and understand which fund would suit you the best
