Large-cap mutual funds are a go-to for many investors who want steady, long-term growth with lower volatility compared to mid- or small-cap funds. According to Trade Brains, these 10 large-cap funds have outperformed the Nifty 100 benchmark over the past three years — delivering SIP-based XIRRs of around 18.9% to 22.5%.
Top 10 Large-Cap Mutual Funds to Watch
Here are the 10 top-performing large-cap mutual funds (in no particular order), based on their 3-year SIP (XIRR):
| Fund | 3-Year SIP XIRR | Key Strengths |
|---|---|---|
| Nippon India Large Cap Fund | ~22.5% | Very strong alpha, high AUM (~₹45,012 Cr), diversified blue-chip exposure. |
| ICICI Prudential Bluechip Fund | ~21.8% | One of the largest funds in the category (~₹71,840 Cr), stable blue-chip selection. |
| Mirae Asset Large Cap Fund | ~21.2% | Very low expense ratio (~0.55%), strong allocation in financials and technology. |
| SBI Blue Chip Fund | ~20.9% | High market reach, steady portfolio with blue-chip names and good stability. |
| HDFC Top 100 Fund | ~20.5% | Long-standing fund with a proven track record and strong legacy portfolio. |
| UTI Mastershare Unit Scheme | ~20.1% | Very old fund, trusted name, good for conservative large-cap exposure. |
| DSP Large Cap Fund | ~19.8% | Value-oriented picks, good for when markets correct — offers execution in large-cap value plays. |
| Aditya Birla Sun Life Frontline Equity Fund | ~19.5% | Focus on large, stable players; well-balanced for long-term compounding. |
| Axis Bluechip Fund | ~19.2% | Good quality picks, relatively low cost, suitable for core equity exposure. |
| Canara Robeco Bluechip Equity Fund | ~18.9% | Lowest expense ratio among the list, stable returns, good AUM and risk-adjusted performance. |
Why These Funds Are Attractive Right Now
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Beat the Benchmark: These funds have consistently beaten the Nifty 100 benchmark in terms of 3-year SIP returns.
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Lower Risk Compared to Mid / Small-Caps: Large-cap funds generally invest in well-established companies, which makes their volatility lower.
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Long-Term Compounding: The strong SIP XIRRs make these funds suitable for long-term wealth creation via compounding.
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Scalability & Liquidity: Many of these funds have very large AUMs, meaning they can handle big inflows and redemptions without liquidity stress.
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Cost Efficiency: Several funds on the list have competitive expense ratios, which helps in maximizing net returns.
Risks & Things to Consider
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Equity Risk: Even large-cap funds are exposed to market risk. If the market corrects, these could fall.
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Performance Attribution: Past performance doesn’t guarantee future returns. These XIRRs reflect recent history, which may not repeat.
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Expense Ratio Drift: Expense ratios can change — always check the latest before investing.
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SIP Discipline: The high 3-year XIRR is based on consistent SIP investments — timing and discipline matter.
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Fund Manager Risk: Changes in fund management or strategy could affect future returns.
Who Should Consider These Funds?
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Moderate Risk Investors: If you want exposure to equities but prefer companies with stable earnings and market leadership.
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Long-Term Investors: Ideal for 3–5+ year goals like wealth creation, retirement planning, or children’s education.
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Core Equity Allocation: Use these as “core” in your portfolio, and supplement with thematic, mid, or small-cap funds if you want extra growth.
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SIP Investors: If you’re doing SIPs, these funds are good for consistent long-term compounding.
Conclusion
The 10 large-cap mutual funds highlighted by Trade Brains have delivered impressive 3-year SIP returns, significantly beating benchmarks. For investors looking for stable equity exposure with potential for healthy growth, these funds merit serious consideration. As always, you should align your mutual fund picks with your financial goals, risk tolerance, and investment horizon.