With market being extremely volatile in the past few weeks, retail investors‘ confidence as well as risk appetite has hit low. Benchmark index Nifty50 closed 1.49 percent lower on Friday. The index now hovers around 12.8 percent lower than its peak of 26,277 which it hit on September 27 last year.
Retail investors, meanwhile, can explore the prospect of investing in large cap mutual funds. Large cap funds are supposed to invest a minimum of 80 percent of their assets in large cap stocks, while the remaining 20 percent in other categories such as mid cap stocks, debt instruments and so on.
Since large cap funds are highly skewed towards blue-chip companies, they are relatively less volatile than small and mid cap mutual funds. Their upside, just like their downside, is also believed to be limited.
Past returns
Before investing in a mutual fund scheme, it is natural for an investor to examine the past returns. Here we list out the top performing schemes which have delivered over 12 percent annualised returns in the past 3 years.
(Source: AMFI; returns as on April 1, 2025)
As we can see in the table above, Nippon India Large Cap Fund delivered 17.03 percent annualised return in the past three years. It is followed by DSP Top 100 Equity Fund (16.35 percent), ICICI Prudential Bluechip fund (15.30 percent) and Baroda BNP Paribas Large Cap (13.47 percent).
It is, meanwhile, important to note that the past returns are only indicative and do not guarantee future returns. This means just because a scheme has performed exceptionally well in the past three years, it does not mean it will continue to perform at the same pace in future as well.
Other factors which should play a role in the investor’s decision of choosing a fund include the reputation of fund house, category of fund (active or passive), market cap of constituent stocks (large cap or small cap) and overall market scenario.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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