The best part of their performance this year is that the large cap schemes have managed to outperform their benchmarks in 2023. The large cap category had been struggling to beat their benchmarks for sometime. However, the category salvaged their reputation in 2023.
As said earlier, the actively-managed large cap mutual fund category has 30 schemes. Around 24 actively-managed large cap schemes managed to outperform their respective benchmarks in 2023. Only six schemes underperformed their benchmarks. The large cap schemes are benchmarked against NIFTY 100 – TRI and S&P BSE 100 – TRI. During this year so far, these benchmarks gave 8.53% and 10.91% respectively.
Top five schemes by AUM or assets
ICICI Prudential Bluechip Fund, the largest actively-managed large cap scheme that manages Rs 40,078.90 crore, offered 13.69% in 2023, beating its benchmark (Nifty – 100 TRI) by 5 percentage points. Other large schemes like SBI Bluechip Fund, Mirae Asset Large Cap Fund, and HDFC Top 100 Fund managed to beat their benchmarks. However, Axis Bluechip Fund, the fourth largest large cap scheme, failed to beat its benchmark. The prominent large cap scheme offered single-digit returns in 2023. It offered 6.87% returns, compared to 10.91% returns offered by its benchmark.
Nippon India Large Cap Fund was the topper in the category. It offered an impressive 19.28% in 2023. HDFC Top 100 Fund was the second name in the list. It gave 15.23%. LIC MF Large Cap Fund gave the lowest return of around 6.44% in 2023.
Note, the above exercise is not a recommendation. The main purpose of this exercise was just to find out how the large cap mutual funds fared in 2023. One should not make investment or redemption decisions based on the above exercise. Investors should not make investment decisions based on short-term performance. One should always choose schemes based on risk appetite, investment horizon and goal. Also, on long-term consistent performance.We considered the regular and growth options. The returns were calculated for January 1, 2023 to September 27, 2023.
Large cap schemes are recommended to conservative investors looking for equity mutual fund schemes to achieve your long-term goals. These schemes are mandated to invest in top 100 companies by market capitalisation. These large companies fare better in a volatile market as these companies may be market leaders and resilient to downturns. This makes these schemes relatively less risky and volatile.
If you are looking for recommendations, see:
Best large cap mutual funds to invest in 2023
