Before investing in a mutual fund scheme, investors usually weigh a number of pros and cons. The factors they consider before deciding to invest include the reputation of the fund house, category of scheme, future prospects of the theme, and importantly – historical returns of the scheme.
Here we look at the returns posted by large cap mutual funds in the past five years and shortlist those that have managed to beat the benchmark returns. And as we know, large cap mutual funds are the schemes that invest 80 percent of their funds in the top 100 companies as ranked according to their market capitalisations.
Before we proceed further, let us understand what the benchmark returns are.
What are benchmark returns?
As the name suggests, benchmark is a standard against which the performance of a mutual fund scheme is compared.
Different categories of mutual funds have different benchmarks against which the returns are evaluated and accordingly, investors take the investing decision. Large cap mutual funds stick to two separate benchmarks: NIFTY 100 Total Return Index and S&P BSE 100 Total Return Index.
These are the large cap schemes that have managed to beat the benchmark returns:
| Large Cap funds | 5-year-returns (%) | Benchmark returns (%) |
| Baroda BNP Paribas Large Cap Fund | 13.21 | 11.90* |
| Canara Robeco Bluechip Equity Fund | 13.50 | 12.70** |
| HDFC Top 100 Fund | 12.27 | 11.90 |
| ICICI Prudential Bluechip Fund | 12.94 | 11.90 |
| Kotak Bluechip Fund | 12.58 | 11.90 |
| Nippon India Large Cap Fund | 13.54 | 12.70 |
(Source: AMFI, data as on Sept 7, 2023)
(*NIFTY 100 Total Return Index), (**BSE 100 Total Return Index)
The annualised returns delivered by these large cap mutual funds range between 12-14 percent and maximum return was given by Nippon India Large Cap Fund, while the lowest was given by HDFC Top 100 Fund.
Let us now understand more about these schemes:
Baroda BNP Paribas Large Cap Fund: This was launched on Sept 23, 2004. It has delivered a return of 15.88 percent since inception. The scheme has an AUM of ₹1,517 crore. The key constituent stocks of the fund include HDFC Bank, ICICI Bank, RIL, Treps and Larsen & Toubro.
Canara Robeco Bluechip Equity Fund: This was launched on Aug 20, 2010. The fund has delivered a return of 12.58 percent since inception.
The scheme’s key constituent stocks include HDFC Bank, ICICI Bank, Reliance Industries, Infosys and Larsen & Toubro. The scheme's assets under management (AUMs) are ₹10,202 crore.
HDFC Top 100 Fund: It was launched on Oct 11, 1996. It has given a return of 18.99 percent since inception. The key constituent stocks include HDFC Bank, ICICI Bank, RIL, ITC and Infosys. Its total AUMs amount to ₹25,775 crore.
ICICI Prudential Bluechip Fund: It was launched on May 23, 2008. It has given a return of 14.47 percent since inception. The key constituent stocks are ICICI Bank, Treps, RIL, L&T and HDFC Bank. The fund’s AUMs are ₹40,285 crore.
Kotak Bluechip Fund: It was launched on Dec 29, 1998. It has given an annualised return of 17.90 percent. Its key constituent stocks are HDFC Bank, ICICI Bank, RIL, Infosys and L&T. Its AUMs amount to ₹6,325 crore.
Nippon India Large Cap Fund: It was launched on Aug 8, 2007 and has given an annualised return of 12.51 percent. The key constituent stocks include HDFC Bank, ICICI Bank, RIL, SBI and L&T. The fund’s AUMs amount to ₹15,583 crore.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
