Five Large-Cap Funds Deliver up To 20% Returns in Three Years

Analysts recommend investing in mutual funds, anticipating volatility in the Indian equity market as benchmark indices reach record high. While selecting a mutual fund to invest in, investors often look for funds that fared well in the past. According to the Association of Mutual Fund Industries' (AMFI) data, five large-cap funds have delivered 18.03%-19.79% returns in the past three years ending November 20, outperforming BSE 100 TRI and Nifty 100 TRI, which both delivered returns of 14.8% and 13.94%, respectively.

A lump sum investment of Rs. 100,000 in these five funds has grown to a significantly higher value. Look at the large-cap funds that delivered up to 20% returns in the past three years.

Bandhan Large-Cap Fund

Bandhan Large-Cap Fund has provided a 3-year annual return of 18.03%, with a lump sum investment of 1 lakh growing to 1.64 lakh rupees. If there were a Rs. 1000 SIP (Systematic Investment Plan) it would have grown to Rs. 47,067at an annual return of 18.17%.

Invesco India Large-Cap Fund

If an investor had made a lump sum investment of Rs.1,00,000, it would have grown to Rs.1.66 lakh in three years at an annual return of 18.47%. Similarly, a Rs.1,000 SIP would have grown to Rs.47,144 over the same period with an 18.27% return.

DSP Large Cap Fund

With a 3-year annualised return of 18.52%, a lump sum investment of Rs. 100,000 would have grown to Rs. 1.66 lakh, and a Rs. 1000 SIP through 3 years will become Rs. 46,806.

ICICI Pru Large Cap Fund

The three-year annualised return stands at 18.68%. With this, a Rs.100,000 lump sum investment will grow to Rs.1.67 lakh, and a Rs.1000 SIP through 3 years will become Rs.47,073.

Nippon India Large Cap Fund

Nippon India Large Cap Fund delivered a 3-year annual return of 19.79%, which means that a Rs. 1,00,000 lump sum investment will grow to Rs. 1.72 lakh, while an SIP return of 18.35% indicates that a Rs. 1,000 investment over 3 years will amount to Rs. 47,193.

Consider the following factors before investing

In addition to past performance, investors should consider other factors when investing in large caps, such as the investment duration, risk profile, expected returns, etc. Large-cap funds are suitable for long-term investors (5-7 years or more) as they deliver stability compared to mid- and small-cap funds, though it may require time to provide inflation-adjusted growth.

Large caps are comparatively stable compared to mid- and small-cap funds, as they have exposure in the top 100 companies. However, they are not completely risk-free. Compared to mid- and small-cap funds, the large-cap funds may underperform despite bullish market sentiments. Usually these funds deliver moderate but consistent growth.