Highest returns large cap funds for portfolio stability

With the volatility in the equity market due to geopolitical tensions and macroeconomic risks, you need to ensure the stability of your portfolio.

Largecaps appear to be a rational choice in the current scenario, given that they are well-established companies with strong financial and other resources.

They are the top 100 companies in terms of market capitalisation. As market leaders, they have large economic moats and are run by mostly efficient and ethical managements.

To take exposure to largecaps in a diversified manner, it makes sense to invest in large cap mutual funds. By making systematic investments in them, you could benefit from steady growth over the long run without being exposed to very high risk.

In this article, we will explore the highest returns large cap funds in the last 10 years, based on SIP returns.

Large Cap Funds – 10 Year SIP

#1 Nippon India Large Cap Fund

This scheme was launched in August 2007 and initially made targeted investments in both, largecap and midcaps, focusing on the top 200 companies.

However, in 2018, it was reclassified as a large cap fund to meet the regulator’s categorisation and rationalisation norms.

Since then, the fund continued to incline its portfolio to largecaps but made small tactical investments in midcaps. 

Nippon India Large Cap Fund focuses on long-term growth by identifying high-growth-potential stocks using the Growth at Reasonable Price (GARP) strategy.

While picking stocks, the fund focuses on criteria such as sound management, a good track record of the company, potential for future growth, and the industry’s economic scenario.

It looks for companies which are leaders or potential leaders, with well-established business models, sustainable & growing free cash flows, and a high return on equity (ROE) and/or having the potential to generate high ROE.

It holds a fairly diversified portfolio across sectors, currently of 69 stocks (as of May 2025). 90% are largecaps and 10% are midcaps.  

The top 10 stocks comprise 45.6% of the portfolio and include names such as HDFC Bank (8.6%), Reliance Industries (7.2%), ICICI Bank (5.9%), etc.

The top 3 sectors are banks (23.8%), IT (7.5%), and oil & gas (7.2%), which comprise 38.4% of the fund’s portfolio.

The fund follows a ‘buy-and-hold’ approach by maintaining a portfolio turnover in the range of 15-30%. This has helped to reward its investors well on a risk-adjusted basis.

In the last decade, it has clocked a SIP return of 17.9% and outperformed the Nifty 100 -TRI. A monthly SIP of Rs 10,000 in the fund over 10 years, i.e., a total investment of Rs 1.2 million (m), is now valued at Rs 3.07 million (m).

The assets under management (AUM) of the scheme have grown multi-fold over the years and are currently around Rs 417 billion (bn) – the third largest in the large cap funds category.

#2 ICICI Prudential Large Cap Fund

This scheme was launched in May 2008 as ICICI Prudential Bluechip Fund and is the largest in the large cap fund managing an AUM of nearly 698 bn. With effect from 16 June 2025, it is renamed to ICICI Prudential Large Cap Fund.

The investment strategy includes shortlisting companies with a proven track record, quality management, and good growth potential. The fund follows a bottom-up approach to identify bargain stocks with promising potential for long-term growth.

While the fund has shown its flair for a value style of investing, it has not shied away from taking a growth approach. While picking stocks, it does not follow a sector bias.

The fund manager looks for the scalability of the companies under consideration. There is also a high weightage given to the track record of the company’s management and the scope of improving profitability.

The fund holds around 60-70 stocks in its portfolio. Currently, it has 67 stocks as per the May 2025 portfolio. 98% is held in largecaps, 2% in midcaps, and none in smallcaps.

The top 10 stocks comprise 54.2% of the portfolio and include names such as HDFC Bank (9.7%), ICICI Bank (9%), and Reliance Industries (6.4%), among others.

The top 3 sectors are banks (24.1%), auto & ancillaries (10.7%), and oil & gas (8.7%), which comprise 43.5% of the fund’s portfolio.

It typically follows a buy-and-hold strategy, maintaining a low portfolio turnover in the range of 15-20%.

This approach has helped in delivering superior performance, consistently outperforming its benchmark and the category average.

In the last decade, the fund has clocked a SIP return of 17.1% while the Nifty 100 -TRI 14.7%. A monthly SIP of Rs 10,000 in the fund over 10 years, i.e., a total investment of Rs 1.2 m, is now valued at Rs 2.94 m.

#3 Canara Robeco Bluechip Equity Fund

This scheme launched in August 2010, today manages an AUM of 160 bn as the May 2025 portfolio.

Earlier it was known as Canara Robeco Large Cap+ Fund, investing in largecaps as well as smaller companies.

However, later it was reclassified as a large cap fund and renamed as Canara Robeco Bluechip Fund.

It follows a blended style of investing, i.e. looks for high-growth stocks available at fair valuation and stays invested for the long term.

It focuses on risk management and picking quality names having high growth potential. It looks for stocks with established business presence, good reputation, and solid brand equity. It does not keep a sector bias when investing.

Currently, the fund is holding a fairly diversified portfolio of 59 stocks (as of May 2025). 96% is held in largecaps and 4% in midcaps.

The top 10 stocks comprise 46.3% of the portfolio and include names such as HDFC Bank (9.6%), ICICI Bank (8.2%), Reliance Industries (5.2%), etc.

The top 3 sectors are banks (25.3%), IT (9.7%), and auto & ancillaries (7.9%), which comprise 42.9% of the fund’s portfolio.

The fund follows a long-term conviction when managing its portfolio. The portfolio turnover is between 22-25% in the last 1 year.

This approach has yielded decent returns for its investors across a long period. Canara Robeco Bluechip Fund has clocked a SIP return of nearly 17% in the last 10 years.

A monthly SIP of Rs 10,000 in the fund over 10 years, i.e., a total investment of Rs 1.2 m, is now valued at Rs 2.92 m.

#4 Invesco India Largecap Fund

Earlier known as the Invesco India Business Leaders Fund, this scheme was launched in August 2009.

It was renamed as Invesco India Largecap Fund in April 2018. Today, it manages AUM worth Rs 26 bn.

When taking exposure to largecaps, it predominantly invests in growth stocks with exposure to few value opportunities. 

It also tactically invests up to 20% in stocks of mid-cap and small-cap companies. 

To benefit from market opportunities, the fund at times churns its portfolio but holds several of its stock holdings with conviction for the long term. In the last 1 year, the portfolio turnover has ranged between 70-90%, which is higher than many of its peers.

Currently, the fund has 51 stocks (as of May 2025). 88% is held in largecaps, 11% in midcaps, and 1% in smallcaps.

The top 10 stocks comprise 46.3% of the portfolio and include names such as HDFC Bank (8.6%), ICICI Bank (7.3%), Infosys (4.7%), etc.

The top 3 sectors are banks (21.9%), auto & ancillaries (11.8%) and IT (10.1%), which comprise 43.9% of the fund’s portfolio.

The fund has outperformed the benchmark and the category average over the long term. The 10-year SIP returns are 16.5%, while of the Nifty 100 – TRI are 14.7%.

A monthly SIP of Rs 10,000 in the fund over 10 years, i.e., a total investment of Rs 1.2 m, is now valued at nearly Rs 2.85 m.

#5 Baroda BNP Paribas Large Cap Fund

This scheme was launched in September 2004 as the BNP Equity Fund. From 2018 it was reclassified and renamed as BNP Paribas Large Cap Fund.

In 2022, after the merger of Baroda Asset Management Company and BNP Paribas Asset Management, the scheme became Baroda BNP Paribas Large Cap Fund. It manages AUM worth around 26 bn.

The fund follows a growth style of investing. It looks for high-growth stocks or high growth-oriented stocks across sectors.

While following a bottom-up approach, it gives preference to quality management, financials, and growth potential.

The fund opportunistically churns its portfolio when it follows its strategy. In the last 1 year, the portfolio turnover has ranged between 50-68%.

Currently, the fund has 52 stocks (as of May 2025). 88% is held in largecaps and 4% in midcaps.

The top 10 stocks comprise 44% of the portfolio and include names such as HDFC Bank (8.2%), ICICI Bank (7.5%), Reliance Industries (5.9%), etc.

The top 3 sectors are banks (22.3%), IT (9%), and auto & ancillaries (8.1%), which comprise 39.4% of the fund’s portfolio.

The strategy followed by the fund has enabled it to deliver a SIP return of 16.2%, outperforming the Nifty 100 -TRI.

A monthly SIP of Rs 10,000 in the fund over 10 years, i.e., a total investment of Rs 1.2 m, is now valued at nearly Rs 2.8 m.

Conclusion

Make a sensible choice when including large cap funds in your core portfolio. The right fund can provide much-needed stability while you SIP into them to compound money.

Ensure you have at least a 3-year investment horizon when investing in large cap funds.

Happy Investing.

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