Synopsis: This article lists the top 7 large-cap mutual funds with the highest CAGR over the last 5 years and have outperformed both their category and benchmark returns. The article also covers what large-cap mutual funds are, what the risk factors associated with these funds are, and who should consider investing in these funds.
According to a recent study, as mentioned in INDmoney, large-cap funds on average gave a 5-year CAGR of around 17-23%. However, the true performance of the index can be evaluated by comparing the returns delivered by the fund with the returns from its benchmark fund and category. This article highlights the funds that gave more returns than their benchmark fund, as well as the large-cap equity category returns.
What Are Large-Cap Mutual Funds?
Large-cap mutual funds are schemes that invest in large-cap stocks, which are basically the stocks of well-established companies that are usually industry leaders with strong balance sheets. According to the SEBI guidelines, large-cap mutual funds must allocate at least 80% of their investment in equity and related investments of large-cap companies.
How We Selected These Funds
We started by identifying large-cap mutual funds from the SEBI-defined large-cap equity category. These funds (Direct Plan–Growth) were then ranked based on their 5-year CAGR using data from Groww. To identify true outperformers, each fund’s performance was compared against its respective benchmark fund and the large-cap equity category average using Value Research data. All figures are based on the latest available period and are used purely for comparative and educational analysis. (Data as of February 18, 2026)
Top 7 Large-Cap Funds (Detailed Analysis)
1. ICICI Prudential BHARAT 22FOF Direct Growth
- NAV: ₹36.74
- AUM: ₹2,551.54Cr
- Expense Ratio:0.12%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 28.55%
- 5-Year CAGR: 27.35%
- 3-Year Absolute Return: 111.7%
- 5-Year Absolute Return: 237.1%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 27.35%
- Large Cap Category Average (5-Year): 13.30
- Outperformance: + 14.05 percentage points
ICICI Prudential BHARAT 22FOF Direct Growth uses the BSE BHARAT 22 Total Return Index as its benchmark fund and is managed by Kayzad Eghlim, Nishit Patel, and Ajay Kumar Solanki. The fund invests fully in BHARAT 22 ETF- Growth. Its Alpha is 9.86, and Sharpe Ratio is 1.13. The portfolio is allocated in such a way that 100.05% is invested in equity assets, and -0.05% is in cash.
2. Nippon India Large Cap Fund Direct Growth
- NAV: ₹104.71
- AUM: ₹50,106.61Cr
- Expense Ratio:0.65%
- Exit load: 1% if redeemed within 7 days.
Performance Snapshot
- 3-Year CAGR: 20.13%
- 5-Year CAGR: 18.31%
- 3-Year Absolute Return: 73.2%
- 5-Year Absolute Return: 132.7%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 18.31%
- Large Cap Category Average (5-Year): 13.30
- Outperformance:+5.01 percentage points
Nippon India Large Cap Fund Direct Growth tracks the BSE 100 Total Return Index as its benchmark fund and is managed by Sailesh Raj Bhan, Bhavik Dave, Divya Dutt Sharma, and Lokesh Maru. Its top 3 holdings include HDFC Bank, ICICI Bank, and Reliance Industries Ltd. Its Alpha is 4.37, and Sharpe Ratio is 1.11. The portfolio is allocated in such a way that 99.1% is invested in equity assets, and 0.9% is in cash.
Also read: Top 7 Midcap Mutual Funds That Outperformed the Category in the Last 5 Years
3. Quant Focused Fund Direct Growth
- NAV: ₹95.87
- AUM: ₹847.71Cr
- Expense Ratio:0.84%
- Exit load: 1% if redeemed within 15 days.
Performance Snapshot
- 3-Year CAGR: 17.16%
- 5-Year CAGR: 17.06%
- 3-Year Absolute Return: 59.4%
- 5-Year Absolute Return: 119.5%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 17.06%
- Large Cap Category Average (5-Year): 13.30
- Outperformance: +3.76 percentage points
Quant Focused Fund Direct Growth uses the NIFTY 500 Total Return Index as its benchmark fund and is managed by Sanjeev Sharma, Sandeep Tandon, and Ankit A Pande. Its top 3 holdings include Larsen & Toubro, Adani Enterprises, and HDFC Bank. Its Alpha is -0.96, and Sharpe Ratio is 0.61. The portfolio is allocated in such a way that 99.54% is invested in equity assets, 23.76% in debt assets, and -23.31% is in cash.
4. DSP Nifty 50 Equal Weight Index Direct Growth
- NAV: ₹27.90
- AUM: ₹2,416.78Cr
- Expense Ratio:0.41%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 18.94%
- 5-Year CAGR: 16.51%
- 3-Year Absolute Return: 68.3%
- 5-Year Absolute Return: 114.0%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 16.51%
- Large Cap Category Average (5-Year): 13.30
- Outperformance: +3.21 percentage points
DSP Nifty 50 Equal Weight Index Fund uses the NIFTY 50 Equal Weight Total Return Index and is managed by Anil Ghelani and Diipesh Shah. Its top 3 holdings include ONGC Ltd, Tata Steel Ltd, and Bharat Electronics. Its Alpha is 2.11, and Sharpe Ratio is 0.89. The portfolio is allocated in such a way that 99.8% is invested in equity assets, and 0.19% is in cash.
5. ICICI Prudential Large Cap Fund Direct Growth
- NAV: ₹125.61
- AUM: ₹76,645.56Cr
- Expense Ratio:0.85%
- Exit load: 1% if redeemed up to 1 year.
Performance Snapshot
- 3-Year CAGR: 18.70%
- 5-Year CAGR: 16.07%
- 3-Year Absolute Return: 67.3%
- 5-Year Absolute Return: 110.5%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 16.07%
- Large Cap Category Average (5-Year): 13.30
- Outperformance:+ 2.77 percentage points
ICICI Prudential Large Cap Fund uses the NIFTY 100 Total Return Index as its benchmark fund and is managed by Sankaran Naren and Vaibhav Dusad. Its top 3 holdings include HDFC Bank, ICICI Bank, and Reliance Industries Ltd. Its Alpha is 2.11, and Sharpe Ratio is 0.89. The portfolio is allocated in such a way that 99.8% is invested in equity assets, and 0.19% is in cash.
6. Invesco India Large Cap Fund Direct Growth
- NAV: ₹84.92
- AUM: ₹1,666.05Cr
- Expense Ratio:0.71%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 19.19%
- 5-Year CAGR: 15.38%
- 3-Year Absolute Return: 69.7%
- 5-Year Absolute Return: 104.7%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 15.38%
- Large Cap Category Average (5-Year): 13.30
- Outperformance: +2.08 percentage points
Invesco India Large Cap Fund follows the NIFTY 100 Total Return Index as its benchmark fund and is managed by Hiten Jain. Its top 3 holdings include ICICI Bank, HDFC Bank, and ICICI Prudential Asset Management Company. Its Alpha is 3.11, and Sharpe Ratio is 0.96. The portfolio is allocated in such a way that 100.11% is invested in equity assets, and -0.11% is in cash.
7. Nippon India Nifty Next 50 Junior BeES FoF Direct Growth
- NAV: ₹26.25
- AUM: ₹661.07Cr
- Expense Ratio:0.12%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 22.48%
- 5-Year CAGR: 15.25%
- 3-Year Absolute Return: 82.9%
- 5-Year Absolute Return: 103.6%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 15.25%
- Large Cap Category Average (5-Year): 13.30
- Outperformance: +1.95 percentage points
Nippon India Nifty Next 50 Junior BeES FoF Direct Growth uses the NIFTY 50 Total Return Index and is managed by Himanshu Mange. The fund invests fully in Nippon India ETF Nifty Next 50 Junior BeES. Its Alpha is 2.67, and Sharpe Ratio is 0.84. The portfolio is allocated in such a way that 99.9% is invested in equity assets, and 0.10% is in cash.
Performance Comparison Table
Risk Factors to Consider
Even when the large-cap mutual funds are more stable than mid or small-cap funds, they are still exposed to market volatility. During economic slowdowns or geopolitical issues, the performance of a large-cap fund can be poor. At the same time, fund performance is not only dependent on external volatilities. Sometimes during bearish markets, funds with exposure to sectors like banking and FMCG may perform better.
On the other hand, even when the market is strongly bullish, some large-cap funds might perform poorly. Therefore, returns of large-cap funds can’t be guaranteed just because they are investing in financially strong companies. It depends on many factors such as investment strategy, risk management, and portfolio allocation.
Who Should Consider These Funds?
These large-cap funds are ideal for investors with a long investment horizon of more than 5 years and who can tolerate market volatility. These funds are also ideal for long-term capital growth and wealth generation, as they are growth funds that accelerate wealth generation.
Conclusion
If used strategically, these funds can help investors in long-term wealth generation by balancing returns through market ups and downs. However, this will require discipline, planning, consistency, and patience to achieve expected financial outcomes.
Written by Nila Maria Jacob
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite, financial goals, and consult a certified financial advisor before investing.
