This is how the large cap category performed via-a-vis their benchmarks in the last seven months. In January, February and June a large number of large cap schemes managed to outperform their respective benchmarks. In May and July, 50% of the large cap schemes managed to beat their respective benchmarks. In March and April only a few schemes could beat their benchmarks. In March, only 27% large cap schemes could beat their benchmarks and in April only 13% could beat their benchmarks. In short, five out of seven months, large cap schemes managed to beat their benchmarks.
Out of 30 schemes in the category, 15 schemes managed to beat their benchmark in July. This shows that only 50% schemes could beat their respective benchmarks. The category offered an average return of around 3.28% in July.
The schemes are benchmarked against NIFTY 100 – TRI, and S&P BSE 100 – TRI. The benchmarks offered 3.13% and 3.09% respectively.
Quant Large Cap Fund gave the highest return of around 5.38% in July, followed by Nippon India Large Cap Fund which offered 4.75%. PGIM India Large Cap Fund offered the lowest return of 2.11% in July.
ICICI Prudential Bluechip Fund, the largest large cap scheme by AUM, gave 4.12% in July. The scheme manages assets of Rs 40,285.71 crore. The scheme managed to beat its benchmark.
Large cap schemes have been underperforming vis-a-vis their respective benchmarks since Sebi introduced Total Return Index (TRI) in February 2018.
Large cap category has continued to witness outflows for the third consecutive month, as per the data by Association of Mutual Funds in India (AMFI). Among all equity-oriented categories, large cap saw the highest outflow of Rs 1,880 crore. In the last three months, the category has witnessed a total outflow of Rs 5,291.89 crore.
Despite witnessing continuous outflows, the asset under management (AUM) of the large cap category increased by approximately 2% in July. The asset under management of the category increased from Rs 2.59 lakh crore in June to Rs 2.66 lakh crore in July. The category manages the second largest assets after the flexi cap fund category.
Note, the above exercise is not a recommendation. This study captures the outflow large cap schemes witnessed in July and how the schemes in the category performed during the month against their benchmarks.
One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon and goal before making investment decisions. Past performance does not guarantee future performance.
If you are looking for recommendations, see:
Best large cap mutual funds to invest in 2023
