You want stability. You want growth. And you don't want to check your portfolio every morning with anxiety.
Large cap mutual funds fit this profile perfectly. They invest in India's top 100 companies by market value. Think Reliance, HDFC Bank, Infosys, TCS. Companies that have weathered multiple market cycles and continue to dominate their industries.
At Belong, we've guided many NRIs through their first equity investment. Large caps are often where we start. Not because they're exciting, but because they're sensible. They form the stable core of any portfolio.
This guide ranks the best large cap funds using transparent criteria.
No vague "best" lists. You'll see exactly how we ranked them: by 5-year returns, by AUM (investor trust), and by expense ratio (cost efficiency). We've also included passive alternatives for those who prefer index funds.
What Are Large Cap Mutual Funds?
Large cap funds invest primarily in India's biggest companies. SEBI defines large cap companies as those ranked 1st to 100th by market capitalization on Indian stock exchanges.
By regulation, these funds must invest at least 80% of their assets in large cap stocks. The remaining 20% can go to mid caps, small caps, or debt instruments.
These aren't the funds that will double your money in a year. But they're unlikely to lose 40% either. Large cap funds delivered average returns of 17-23% over the past 5 years, according to AMFI data.
👉 Tip: Allocate 40-60% of your equity portfolio to large caps. They provide stability that lets you hold through market corrections.
Why NRIs Should Consider Large Cap Funds
Living abroad means you can't react to every market movement. You need investments that don't require constant attention. Large caps offer exactly that.
Stability during volatility. When markets crashed in March 2020, large cap funds fell 25-30%. Small caps dropped 40-50%. The recovery was also faster for large caps.
Lower research burden. Fund managers focus on well-covered companies. These businesses have public financials, analyst coverage, and predictable patterns.
Reliable dividend history. Many large cap companies pay regular dividends. This can provide passive income if you choose the IDCW (dividend) option.
Easier repatriation. Large cap funds are highly liquid. You can redeem within 2-3 business days when you need funds back in your NRE or NRO account.
Best Large Cap Funds Ranked by 5-Year Returns
This is the most common way to compare funds. We've ranked purely by trailing 5-year CAGR (Compound Annual Growth Rate). Higher returns appear first.
Ranking Criteria: 5-year annualized returns as of December 2025. Data sourced from Groww, Scripbox, and fund factsheets.
Rank | Fund Name | 5Y CAGR | 3Y CAGR | 1Y Return | Expense Ratio |
|---|---|---|---|---|---|
1 | Nippon India Large Cap Fund | 21.8% | 19.5% | 5.4% | 0.70% |
2 | ICICI Prudential Large Cap Fund | 19.3% | 18.3% | 7.0% | 0.80% |
3 | DSP Nifty 50 Equal Weight Index | 18.8% | 16.8% | -2.1% | 0.40% |
4 | HDFC Large Cap Fund | 18.3% | 15.9% | 3.7% | 1.00% |
5 | Invesco India Largecap Fund | 17.9% | 18.4% | 4.5% | 0.75% |
6 | Kotak Bluechip Fund | 17.5% | 15.8% | 2.2% | 0.55% |
7 | Canara Robeco Bluechip Equity | 16.5% | 16.2% | 4.2% | 0.51% |
8 | SBI Large Cap Fund | 16.2% | 14.7% | 5.3% | 0.80% |
9 | Baroda BNP Paribas Large Cap | 16.5% | 16.5% | 3.8% | 0.77% |
10 | JM Large Cap Fund | 16.0% | 16.4% | 2.5% | 0.65% |
Data as of December 2025. Source: Groww, Scripbox
Nippon India Large Cap Fund
This fund leads the category with 21.8% returns over 5 years. Launched in 1995, it's one of India's oldest large cap funds with nearly 30 years of track record.
The fund follows a GARP (Growth at Reasonable Price) strategy. It looks for companies with strong management, growth potential, and reasonable valuations. The portfolio holds around 69 stocks with top holdings in HDFC Bank, Reliance Industries, and ICICI Bank.
Why it stands out: Consistent outperformance across market cycles. The fund's alpha of 2.49 is among the highest in the category, indicating strong risk-adjusted returns. It carries a 5-star rating from Value Research.
Minimum investment: ₹100 lump sum, ₹100 SIP
Exit load: 1% if redeemed within 7 days
ICICI Prudential Large Cap Fund
Managed by S. Naren and Rajat Chandak, this fund has delivered 19.3% over 5 years. It maintains around 90% in large caps with strategic mid-cap exposure.
The fund focuses on value investing, buying quality stocks when they're undervalued. This approach can underperform in momentum-driven markets but protects during downturns.
Why it stands out: Largest AUM in the category at ₹78,160 crore. High AUM indicates investor trust but can limit agility in smaller stocks.
Minimum investment: ₹100 lump sum, ₹100 SIP
Exit load: 1% if redeemed within 1 year
👉 Tip: Past returns don't guarantee future performance. Look at 5-year rolling returns, not just trailing returns, to assess consistency.
Best Large Cap Funds Ranked by AUM (Investor Trust)
Assets Under Management (AUM) reflects how much money investors have entrusted to a fund. Higher AUM often indicates:
- Investor confidence
- Better liquidity
- Longer track record
However, very high AUM can sometimes limit a fund's ability to generate alpha, especially when buying smaller positions.
Ranking Criteria: Total AUM as of December 2025. Data from AMFI and fund factsheets.
Rank | Fund Name | AUM (₹ Cr) | 5Y CAGR | Expense Ratio |
|---|---|---|---|---|
1 | ICICI Prudential Large Cap Fund | 78,160 | 19.3% | 0.80% |
2 | SBI Large Cap Fund | 55,637 | 16.2% | 0.80% |
3 | Nippon India Large Cap Fund | 50,312 | 21.8% | 0.70% |
4 | Kotak Bluechip Fund | 45,012 | 17.5% | 0.55% |
5 | HDFC Large Cap Fund | 40,618 | 18.3% | 1.00% |
6 | Canara Robeco Bluechip Equity | 17,527 | 16.5% | 0.51% |
7 | Axis Bluechip Fund | 15,200 | 14.8% | 0.65% |
8 | Aditya Birla Sun Life Frontline Equity | 12,500 | 15.2% | 0.95% |
9 | UTI Nifty 50 Index Fund | 11,800 | 14.9% | 0.20% |
10 | Mirae Asset Large Cap Fund | 10,200 | 15.8% | 0.55% |
Data as of December 2025. Source: AMFI, Angel One
SBI Large Cap Fund
With ₹55,637 crore AUM, this is among the largest actively managed large cap funds. SBI Mutual Fund is India's biggest AMC, managing over ₹11.5 lakh crore across all categories (Business Standard).
The fund maintains a diversified portfolio across sectors, with financial services, IT, and consumer goods as top holdings. Returns have been moderate at 16.2% over 5 years, slightly below category average.
Best for: Investors who prioritize brand trust and liquidity over maximum returns.
Kotak Bluechip Fund
This fund manages ₹45,012 crore while maintaining a competitive expense ratio of 0.55%. It delivered 17.5% over 5 years with a 4-star Value Research rating.
The fund follows a blend approach, combining growth and value strategies. It holds around 51 stocks with 88% in large caps and 11% in mid caps.
Best for: Cost-conscious investors wanting a balanced approach.
Best Large Cap Funds Ranked by Expense Ratio (Cost Efficiency)
Expense ratio directly impacts your returns. A fund charging 1% eats more of your gains than one charging 0.5%. Over 20 years, this difference compounds significantly.
Ranking Criteria: Direct plan expense ratio (lowest to highest). Regular plans typically add 0.5-1% more.
Rank | Fund Name | Expense Ratio | 5Y CAGR | AUM (₹ Cr) |
|---|---|---|---|---|
1 | UTI Nifty 50 Index Fund | 0.20% | 14.9% | 11,800 |
2 | HDFC Nifty 50 Index Fund | 0.20% | 14.9% | 22,531 |
3 | SBI Nifty Index Fund | 0.20% | 14.8% | 8,500 |
4 | ICICI Pru Nifty 50 Index Fund | 0.25% | 14.9% | 7,200 |
5 | Edelweiss Large Cap Fund | 0.40% | 15.5% | 850 |
6 | Canara Robeco Bluechip Equity | 0.51% | 16.5% | 17,527 |
7 | Kotak Bluechip Fund | 0.55% | 17.5% | 45,012 |
8 | JM Large Cap Fund | 0.65% | 16.0% | 800 |
9 | Nippon India Large Cap Fund | 0.70% | 21.8% | 50,312 |
10 | Invesco India Largecap Fund | 0.75% | 17.9% | 1,324 |
Data as of December 2025. Source: Groww, fund factsheets
Why Canara Robeco Bluechip Stands Out
Among actively managed funds, Canara Robeco Bluechip offers the lowest expense ratio at 0.51%. It has delivered 16.5% over 5 years, matching the category average while charging less than peers.
The fund holds 59 stocks with 96% in large caps. Top sectors include banks (25.3%), IT (9.7%), and auto (7.9%). It follows a blend style, seeking growth stocks at fair valuations.
Historical insight: This fund was originally named Canara Robeco Large Cap+ Fund before SEBI recategorization. It has a 15+ year track record across market cycles.
👉 Tip: Always choose Direct plans over Regular plans. The expense difference (0.5-1% annually) compounds to lakhs over time.
Index Funds vs Active Large Cap Funds
Here's a question many NRIs ask: Should I just buy a Nifty 50 index fund instead?
Index funds passively track a benchmark (like Nifty 50). They don't try to beat the market. They simply replicate it at minimal cost.
Parameter | Active Large Cap Fund | Nifty 50 Index Fund |
|---|---|---|
Expense Ratio | 0.5-1.0% | 0.1-0.25% |
Fund Manager | Active stock selection | Passive replication |
Goal | Beat the benchmark | Match the benchmark |
5Y Returns (avg) | 16-21% | 14-15% |
Risk | Depends on manager | Market risk only |
When Index Funds Make Sense
Consider index funds if you:
- Believe markets are efficient and most managers can't consistently beat them
- Want the lowest possible costs
- Prefer a truly passive, set-and-forget approach
- Have a 10+ year horizon where small cost differences compound
When Active Funds Make Sense
Consider active large cap funds if you:
- Want potential to beat market returns (alpha)
- Trust specific fund managers with proven track records
- Are willing to pay slightly higher fees for potential outperformance
- Can accept periods of underperformance relative to index
The data: Over the last 10 years, top active large cap funds like Nippon India and ICICI Prudential have outperformed Nifty 50 by 2-5% annually. However, the average active large cap fund has only matched or slightly underperformed the index after fees.
This is why we recommend a mix: Core Nifty 50 index holding + select high-conviction active funds.
Best Nifty 50 Index Funds for 2025
If you prefer the passive route, here are the top Nifty 50 index funds ranked by tracking error (lower is better):
Fund Name | Expense Ratio | 5Y CAGR | Tracking Error | AUM (₹ Cr) |
|---|---|---|---|---|
UTI Nifty 50 Index Fund | 0.20% | 14.9% | 0.03% | 11,800 |
HDFC Nifty 50 Index Fund | 0.20% | 14.9% | 0.04% | 22,531 |
ICICI Pru Nifty 50 Index Fund | 0.25% | 14.9% | 0.04% | 7,200 |
SBI Nifty Index Fund | 0.20% | 14.8% | 0.05% | 8,500 |
Nippon India Index Nifty 50 | 0.20% | 14.8% | 0.05% | 5,200 |
Tracking error measures how closely the fund follows the index. Lower is better. Data as of December 2025.
Our pick: UTI Nifty 50 Index Fund offers the lowest tracking error with competitive expense ratio. For larger AUM preference, HDFC Nifty 50 Index Fund is reliable.
New Large Cap Fund Launches (2024-2025)
2024 saw over 200 NFOs (New Fund Offerings), a record year according to Morningstar India. While most were thematic and sectoral funds, a few large cap offerings deserve attention.
Ranking Criteria: NFOs launched in 2024-2025 that have completed at least 6 months.
Fund Name | Launch Date | Return Since Launch | AUM (₹ Cr) |
|---|---|---|---|
Motilal Oswal Large Cap Fund | March 2024 | ~26.7% | 1,200 |
WhiteOak Capital Large Cap Fund | Aug 2024 | ~12% | 450 |
Groww Large Cap Fund | July 2024 | ~10% | 380 |
Note: Returns since launch for new funds may not indicate long-term performance. Data as of December 2025.
Should You Invest in NFOs?
Generally, no. Here's why:
NFOs lack track record. You can't evaluate how the fund performs during market corrections, bull runs, or sideways markets.
No performance data. Unlike existing funds with 3-5-10 year returns, NFOs only have promises.
Same exposure available. Most NFOs in the large cap space offer similar portfolios to existing funds with proven track records.
Exception: If an NFO offers a genuinely differentiated strategy (like WhiteOak's quality factor approach), it might warrant a small allocation after you've built your core portfolio.
👉 Tip: Wait 2-3 years after launch before investing in any new fund. Let the track record develop first.
How to Select the Right Large Cap Fund
With dozens of options, choosing can feel overwhelming. Here's our framework:
Step 1: Define Your Priority
If Your Priority Is… | Focus On |
|---|---|
Maximum returns | 5-year CAGR leaders |
Safety and trust | High AUM funds |
Cost efficiency | Low expense ratio |
Simplicity | Index funds |
Step 2: Check Consistency
Don't just look at 5-year returns. Check:
- Rolling returns: How has the fund performed over various 3-year periods?
- Quartile ranking: Is the fund consistently in top 2 quartiles?
- Downside protection: How much did it fall in March 2020 or 2022?
Step 3: Evaluate Fund Manager
For actively managed funds:
- How long has the current manager been managing this fund?
- What's their investment philosophy?
- How have they performed across different market conditions?
Step 4: Compare Costs
Always compare Direct plan expense ratios. A 0.5% difference over 20 years on ₹50 lakh investment equals ₹8-10 lakh in lost returns.
Step 5: Consider Tax Implications
For NRIs, taxation impacts actual returns significantly. We cover this in detail below.
Taxation for NRIs on Large Cap Funds
Tax rules changed significantly after July 23, 2024. Here's the current structure:
Capital Gains Tax
Holding Period | Tax Rate | Notes |
|---|---|---|
Less than 12 months (STCG) | 20% | Changed from 15% in July 2024 |
More than 12 months (LTCG) | 12.5% on gains above ₹1.25L | Changed from 10% above ₹1L |
TDS for NRIs
Banks and AMCs deduct TDS on redemptions:
- STCG: 20% TDS
- LTCG: 12.5% TDS on gains exceeding ₹1.25 lakh
You can claim refunds by filing ITR if TDS exceeds actual liability.
Tax Optimization Strategies
Use the ₹1.25 lakh exemption annually. Redeem gains up to this limit each financial year tax-free.
Split redemptions across two years. If you have ₹3 lakh in gains, redeem ₹1.5 lakh in March and ₹1.5 lakh in April. Use two years' exemptions.
Consider DTAA benefits. UAE doesn't tax capital gains. India-UAE DTAA may provide relief, though you'll need to claim benefits through proper documentation.
👉 Tip: Maintain investments for over 12 months to benefit from lower LTCG rates (12.5% vs 20% STCG).
A Smarter Alternative: GIFT City Funds
Here's what most NRIs overlook: GIFT City mutual funds offer potentially tax-free returns for UAE residents.
Under Section 10(4D) of the Income Tax Act, capital gains from GIFT City funds are exempt from Indian tax. Combined with UAE's zero-tax environment, you effectively pay 0% on investment gains.
Regular vs GIFT City: A Comparison
Parameter | Regular Large Cap Fund | GIFT City Alternative |
|---|---|---|
STCG Tax | 20% | 0% (for UAE NRIs) |
LTCG Tax | 12.5% above ₹1.25L | 0% (for UAE NRIs) |
Currency | INR | USD |
TDS | Yes | No |
Repatriation | Via NRE/NRO | Fully repatriable |
Tax Savings Example
Invest ₹30 lakh in a large cap fund earning 15% annually for 10 years:
- Regular fund: Corpus ₹1.21 crore, Tax on gains ~₹11.4L = Net ₹1.10 crore
- GIFT City: Corpus ₹1.21 crore, Tax = ₹0 = Net ₹1.21 crore
That's ₹11+ lakh saved purely through tax efficiency.
Explore options like DSP Global Equity Fund or Tata India Dynamic Equity Fund available through GIFT City.
Model Portfolios for Different Goals
Here's how you might allocate based on your situation:
Conservative Portfolio (Pre-Retiree, 5-7 Year Horizon)
Allocation | Fund Type | Example Fund |
|---|---|---|
40% | Large Cap Index | UTI Nifty 50 Index |
30% | Active Large Cap | Nippon India Large Cap |
30% | HDFC Balanced Advantage |
Expected returns: 12-15% with moderate volatility
Growth Portfolio (Working NRI, 10+ Year Horizon)
Allocation | Fund Type | Example Fund |
|---|---|---|
35% | Active Large Cap | ICICI Prudential Large Cap |
25% | Large Cap Index | HDFC Nifty 50 Index |
25% | Parag Parikh Flexi Cap | |
15% | Kotak Emerging Equity |
Expected returns: 14-18% with higher volatility
Aggressive Portfolio (Young NRI, 15+ Year Horizon)
Allocation | Fund Type | Example Fund |
|---|---|---|
30% | Active Large Cap | Nippon India Large Cap |
20% | Nifty Next 50 Index | ICICI Pru Nifty Next 50 |
25% | Mid Cap | HDFC Mid Cap Opportunities |
15% | Small Cap | SBI Small Cap |
10% | Sectoral exposure |
Expected returns: 16-20% with significant volatility
How to Invest in Large Cap Funds as an NRI
Step 1: Complete KYC
You'll need:
- PAN card
- Passport with valid visa
- Overseas address proof
- Passport-size photograph
Most AMCs offer video KYC for remote completion.
Step 2: Link Your Bank Account
Open an NRE or NRO account with an Indian bank:
- NRE: Full repatriation of principal and gains
- NRO: ₹1 million annual repatriation limit
Step 3: Choose Direct Plans
Always select Direct plans to avoid distributor commissions. This saves 0.5-1% annually.
Step 4: Set Up SIP or Lump Sum
- SIP (Systematic Investment Plan): Invest fixed amount monthly. Best for volatile markets.
- Lump Sum: One-time investment. Works well during market corrections.
Step 5: Enable Auto-Debit
Link your NRE/NRO account for automatic SIP deductions. This ensures consistency despite busy schedules abroad.
Common Mistakes to Avoid
1. Chasing Last Year's Topper
The fund that gave 25% last year might give 8% next year. Look at 5-year rolling returns, not just trailing returns.
2. Ignoring Expense Ratios
A 1% expense ratio versus 0.5% may seem small. Over 20 years on ₹50 lakh, it's ₹8-10 lakh difference.
3. Too Many Funds
Holding 5 large cap funds doesn't add diversification. They all hold similar stocks. Stick to 1-2 large cap funds maximum.
4. Regular Plans Instead of Direct
Regular plans pay commissions to distributors. Direct plans pass those savings to you. Always choose Direct.
5. Redeeming During Corrections
Large cap funds can fall 20-30% during market corrections. If you redeem in panic, you lock in losses. Stay invested for 5+ years.
6. Ignoring GIFT City Options
UAE NRIs leaving money in regular funds pay 12.5-20% tax unnecessarily. GIFT City alternatives can save lakhs over time.
Take Your Next Step
Large cap funds form the foundation of a sensible equity portfolio. Whether you choose active funds for potential alpha or index funds for cost efficiency, the key is starting early and staying invested.
Use Belong's NRI FD Comparison Tool to explore fixed income alternatives for the stable portion of your portfolio. Check your residential status to understand tax implications correctly.
For tax-efficient equity exposure, explore GIFT City mutual funds that offer potentially zero tax on capital gains for UAE residents.
Have questions about which large cap fund fits your situation? Join our WhatsApp community where many NRIs discuss their investment strategies and experiences. Or download the Belong app to start investing in tax-efficient GIFT City products.
Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Rankings in this article use transparent criteria (5-year returns, AUM, expense ratio) and should not be considered investment recommendations. Consult a SEBI-registered advisor before investing.
