Investing in mutual funds allows you to grow your wealth over a period of time. Large-cap mutual funds can be a popular choice for investors looking for stability and consistent returns. These funds invest in established, financially strong companies known as large-cap companies. Now that the stock market is undergoing a correction, you may be wondering which large-cap mutual funds are a good place to invest. This article will discuss some of them. Best large-cap mutual funds to invest in 2025 In India.
What is a large-cap investment trust?
If you are already familiar with large-cap funds, please skip this section.
Largecap Mutual Fund is an equity fund that invests in the top 100 companies listed on Indian stock exchanges by market capitalization. These companies are commonly referred to as “blue-chip companies” because they have an established track record and a stable track record in the face of market fluctuations.
Large-cap funds have lower risk than mid-cap and small-cap funds, making them a good choice for conservative investors looking for steady growth in their investments.
Why invest in large-cap funds in 2025?
India’s economy is expected to continue growing beyond 2025, driven by a young workforce and digitalisation. Recently, FIIs have been net sellers in the Indian stock market in recent weeks, but historically they have always come back.
Here are some key reasons why you should invest in large-cap funds in 2025 and beyond.
stability – Large-cap stocks have proven business models and are industry leaders.
consistent revenue – Funds in these categories have historically provided consistent returns over the medium to long term.
Reduce risk – Large-cap funds tend to have lower volatility than mid-cap and small-cap mutual funds.
Good for long term goals – Suitable for long-term financial goals such as retirement, children’s education, and buying a home.
Investors can consider large-cap funds with low beta values. A beta value of 1.0 means the fund’s movements are in line with the market. A beta of less than 1 indicates less volatility than the market, and a beta of greater than 1 indicates more volatility.
Top 5 Best Large-Scale Mutual Funds to Invest in in 2025
Below are some of the best-performing large-cap mutual funds that could be solid investments in 2025 and beyond. Returns shown are annualized returns.
| scheme name | Gold (Cr) | 1 year | 3Y | 5 years | 10 years |
|---|---|---|---|---|---|
| Japan India Large Cap Fund | 34,105 | 31.3% | 20.8% | 20.7% | 15.0% |
| ICICI Prudential Blue Chip Fund | 63,670 | 29.9% | 17.6% | 20.0% | 14.6% |
| Invesco India Large Cap Fund | 1,255 | 34.2% | 15.5% | 19.5% | 14.6% |
| Canara Robeco Blue Chip Equity Fund | 14,581 | 29.8% | 14.7% | 19.5% | 14.8% |
| Baroda BNP Paribas Large Cap Fund | 2,349 | 32.4% | 17.0% | 19.1% | 14.4% |
Top 5 large-cap mutual funds to invest in in 2025 – Why invest?
#1 – Japan India Large Cap Fund
This large-cap fund currently invests 99% in stocks and 1% in TREPS.
- Of the company’s stock portfolio, 66% is invested in large-cap stocks, 12% in mid-cap stocks, 3% in small-cap stocks, and the rest in other stocks.
- Direct plan expense ratio is 0.67%
- The fund’s beta value is 0.98, which indicates that the fund has the potential to move with the market, although some fluctuations may occur.
- The fund has generated an annualized return of 17.0% since its inception.
- The fund has generated 18.3% SIP returns in the last 10 years and 25.8% SIP returns in the last 5 years.
- The fund has outperformed the benchmark BSE 100 TRI over 1-year, 3-year, 5-year and 10-year periods.
- I have personally invested in this mutual fund for the past few years.
Japan India Large Cap Fund has a consistent track record of outperforming its benchmark. A diversified portfolio centered on large-cap stocks is suitable for medium- to high-risk investors with a medium- to long-term investment horizon.
#2 – ICICI Prudential Blue Chip Fund
The large-cap fund currently invests 90% in equities and 10% in TREPS.
- Of the company’s stock portfolio, 76% is invested in large-cap stocks, 3% in mid-cap stocks, 1% in small-cap stocks, and the rest in other stocks.
- Direct plan expense ratio is 0.87%
- The fund’s beta value is 0.88, which indicates that the fund may move with the market, but the volatility may be slightly lower.
- The fund has generated an annualized return of 16.5% since its inception.
- The fund has generated 17.5% SIP returns in the last 10 years and 23.1% SIP returns in the last 5 years.
- The fund has outperformed the benchmark Nifty 100 TRI over 1-year, 3-year, 5-year and 10-year periods.
ICICI Prudential Blue Chip Fund focuses on strong large-cap companies that provide consistent performance across different market cycles. The beta value is slightly lower at 0.88, making it less volatile than the market and suitable for medium- to high-risk investors looking for long-term growth with some downside protection.
#3 – Invesco India Large Cap Fund
This large-cap fund currently invests 99% in stocks and 1% in TREPS.
- Of the company’s stock portfolio, 55% is invested in large-cap stocks, 12% in mid-cap stocks, 5% in small-cap stocks, and the rest in other stocks.
- Direct plan expense ratio is 0.72%
- The fund’s beta value is 0.96, which indicates that the fund has the potential to move with the market, although some fluctuations may occur.
- The fund has generated an annualized return of 16.3% since its inception.
- The fund has generated 17.0% SIP returns in the last 10 years and 22.4% SIP returns in the last 5 years.
- The fund has outperformed the benchmark Nifty 100 TRI over 1-year, 3-year, 5-year and 10-year periods.
Invesco India Large Cap Fund offers a balanced portfolio with a mix of large-cap stocks and selected mid- and small-cap stocks. Since the beta value is close to 1, it closely follows the market movement. Ideal for medium- to high-risk investors looking for market-aligned returns and investing for the medium to long term.
#4 – Canara Robeco Blue Chip Equity Fund
The large-cap fund currently has 96% invested in equities and 4% in TREPS.
- Of the company’s stock portfolio, 68% is invested in large-cap stocks, 10% in mid-cap stocks, 1% in small-cap stocks, and the rest in other stocks.
- Direct plan expense ratio is 0.48%
- The fund’s beta value is 0.91, which indicates that the fund has the potential to move with the market, but the volatility may be slightly lower.
- The fund has generated an annualized return of 15.7% since its inception.
- The fund has generated 17.5% SIP returns in the last 10 years and 20.5% SIP returns in the last 5 years.
- The fund has outperformed the benchmark BSE 100 TRI over 1-year, 3-year, 5-year and 10-year periods.
Canara Robeco Bluechip Equity Fund has a relatively low expense ratio, making it a cost-effective option for investors. The slightly lower beta value of 0.91 reduces volatility, making it suitable for medium-risk investors looking for a combination of stability and steady long-term growth.
#5 – Baroda BNP Paribas Large Cap Fund
The large-cap fund currently invests 91.2% in stocks, 1.7% in F&O Holdings, and 6% in TREPS.
- Of the company’s stock portfolio, 64% is invested in large-cap stocks, 6% in mid-cap stocks, 1% in small-cap stocks, and the rest in other stocks.
- Direct plan expense ratio is 0.82%
- The fund’s beta value is 0.94, which indicates that the fund is likely to move in line with the market, although the volatility may be slightly lower.
- The fund has generated an annualized return of 16.5% since its inception.
- The fund has generated 17% SIP returns in the last 10 years and 21.8% SIP returns in the last 5 years.
- The fund has outperformed the benchmark Nifty 100 TRI over 1-year, 3-year, 5-year and 10-year periods.
Baroda BNP Paribas Large Cap Fund balances its portfolio with a mix of large and mid-cap holdings and minimizes small-cap exposure. It has a beta value of 0.94, meaning it has slightly lower volatility but moves in sync with market trends. This fund is ideal for medium- to high-risk investors looking for diversified growth potential in a stable large-cap fund.
How to choose the best large-cap investment trust in 2025
When choosing a large-cap mutual fund, investors can consider the following factors:
- Past achievements – You should look at the fund’s performance over the past 3-5 years or beyond. A good large-cap fund should exhibit stable and consistent growth.
- Expense ratio – A lower expense ratio means less investment goes into managing the fund. Choose a fund with a reasonable expense ratio.
- Fund manager expertise – The experience and expertise of the fund manager plays an important role in the fund’s performance.
- Investment horizon – Large-cap funds are best suited for long-term investments (5 years or more). Make sure you are prepared to continue investing for a longer period of time.
- Risk appetite – Although large-cap funds are relatively safe, they are still exposed to market risk. Investors should assess the risks before investing in such large-cap funds.
Tips for investing in large cap funds in 2025
- Long term investment: Large-cap funds work best when invested for the long term. You should aim for your investment to take at least 5 to 7 years to grow significantly.
- Let’s compare SIP to a lump sum. Systematic investment plans (SIPs) help you invest regularly through rupee cost averaging and take advantage of market fluctuations. However, investors can often invest in lump sums whenever the market is undergoing significant corrections.
- Stay informed: Keep an eye on India’s economic trends and the performance of top companies. This will help you make informed decisions.
Is it the best time to invest in large-cap mutual funds?
Looking beyond 2025, large-cap mutual funds remain a reliable and relatively safe investment choice among mutual funds. It balances growth and stability, making it suitable for investors who want stable returns while minimizing risk. By choosing the right fund, you can take advantage of India’s growing economy and secure your financial future.
Disclaimer: Investments in mutual funds are subject to market risk. Please be sure to read the scheme documentation carefully and consult your financial advisor before making any investment decisions.
