Best mutual funds: Large-cap schemes that delivered over 20 per cent returns in the past 5 years – should you invest?

Mutual fund investors tend to compare the returns delivered by different schemes before investing. Usually, retail investors compare the returns delivered by schemes in the same category before opting for one mutual fund scheme over another.

It is worth noting that wealth advisors typically urge investors to make an investing decision based on an interplay of factors rather than solely on the returns given by a scheme. Other factors include the reputation of the mutual fund house, past performance of the fund manager(s), the category of the mutual fund scheme, and macroeconomic factors.

Comparing the large-cap funds

Here, we compare the past five-year returns delivered by large-cap funds. These funds refer to schemes that invest a minimum of 80 per cent of their assets in large-cap stocks.

Large-cap stocks refer to the securities of companies ranked in the list of the top 100 companies when measured in market capitalisation.

(Source: AMFI; Regular returns as on Aug 22, 2024)

As seen in the table above, Nippon India Large Cap Fund gave the highest return of 23.41 per cent, followed by ICICI Prudential Bluechip Fund (22.33 per cent).

Other large-cap mutual fund schemes that gave more than 20 per cent include Aditya Birla Sun Life Frontline Equity Fund, Bandhan Large Cap Fund, Canara Robeco Bluechip Equity Fund and Baroda BNP Paribas Large Cap Fund.

As mentioned above, a mutual fund scheme’s past returns do not guarantee its future returns. As the saying goes, read the offer-related documents carefully before investing.

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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