5 top-performing large cap mutual funds with highest returns in 10 years

Before investing in a mutual fund, investors usually weigh the pros and cons of a scheme. The factors they consider include the category a scheme belongs to, reputation and credibility attached to the fund house, past performance of the fund manager, as well as that of the scheme.

Although wealth managers often assert that the past performance of a scheme is no guarantee of its future performance, investors invariably attach a lot of importance to a scheme’s past performance vis-à-vis others in the category.

As the stock market index has witnessed a lot of volatility in the recent past, small and mid-cap mutual funds are considered ‘risky’ bets. Conversely, large cap mutual funds are believed to be safer, reliable and consistent performers.

Here we give a lowdown on the large cap mutual funds, particularly the returns they gave in the past one decade.

What are large cap mutual funds?

Large cap mutual funds refer to the schemes which have made a minimum of 80 percent investment in large cap stocks, according to the Sebi’s guidelines on categorisation and rationalisation of schemes.

(Source: Morning Star; annualised returns as on Oct 5)

As we can see in the table above, the large cap mutual funds — as a category — have given an annualised return of 11.82 percent in the past one year, around 19 percent in the past three years and close to 13-14 percent in the past 5 and 10 years.

Top performing large cap funds

The individual schemes under the category of large cap mutual funds have delivered an annualised return of 15-17 percent in the past 10 years, as shown in the table below.

(Source: AMFI; returns as on Oct 5, 2023)

The table above revealed that the top-performing scheme of Nippon India MF delivered 17.09 percent annualised returns in the past 10 years. Other high performing large cap mutual funds gave an annualised return in the range of 15 to 17 percent during this period.