This is unlike midcap and small cap funds which experience high fluctuations since these companies are mostly start-ups with little brand presence and inconsistent cashflows. This is because their underlying stocks are reputed companies with established products and services which remain in demand even during economic slowdowns. Stable Returns: The biggest advantage of large cap mutual funds is that they offer stable and consistent returns. *Data as of August 2021 **nseindia What are the Advantages of Large Cap Mutual Funds? – Why Should You Invest in Large Cap Mutual Funds?ġ. These stocks feature in majority of the portfolios of large cap mutual funds. The below chart shows the top 10 large cap stocks in India (as per market capitalisation). This makes them more resilient and store of value during market crashes. So, basically large cap mutual funds invest in most valued companies of India. The name is derived from the game of poker where blue coloured chips had the highest value. Large cap mutual funds are also known as blue chip mutual funds. This is one of the reasons why large cap stocks have limited downside during a market crash. All of these things help them tide through economic downturns. These companies generally enjoy high brand value, customer loyalty, financial stability and have huge cash reserves. So, basically all the stocks listed in S&P BSE Sensex, Nifty 50 and Nifty 100 are large cap stocks. These are the top 100 companies listed on the exchange on the basis of market capitalisation. List of 5 Best Large Cap Mutual Funds in 2021 5 Best Large Cap Mutual Funds in 2021Īs of August 2021 **Data source: What is Large Cap Mutual Funds?Īs per Securities and Exchange Board of India (SEBI), large cap mutual funds must invest minimum 80% of their corpus in equity shares of large cap companies. We will also reveal the list of the best large cap mutual funds in 2021. In today’s article, we will understand what are large cap mutual funds. This is primarily why large cap mutual funds are considered to be the safest type of equity funds in India. Hence, large cap funds experience low volatility. These companies are market leaders and have stable cash flows. It invests a major portion of its corpus in stocks of large cap companies like Reliance Industries Ltd., HDFC Ltd, Infosys Ltd., State Bank of India etc. A large cap mutual fund is an equity-oriented fund.