The large cap schemes are benchmarked against Nifty 100 -TRI and S&P BSE 100 -TRI. During the first six months of 2023, the benchmarks – Nifty 100 -TRI and S&P BSE 100 -TRI offered 5.15% and 7.07% respectively.
That means, the large cap category managed to outperform Nifty 100-TRI but offered almost similar returns to S&P BSE 100-TRI.
There were 31 schemes in the large cap category. All the schemes in the category were in green. Nippon India Large Cap Fund offered the highest return of around 11.76%, followed by Invesco India Largecap Fund. The scheme offered 10.04% returns. Taurus Largecap Equity Fund offered the lowest return of 2.68%.
During April-June quarter in 2023, the large cap category offered an average return of around 11.57% return. During this time period Nifty50 and S&P BSE Sensex surged 10.29% and 9.49% respectively. The benchmark indices Nifty 100-TRI and S&P BSE 100-TRI offered around 11.60% and 11.84% return.
During the quarter that ended in June 2023, Invesco India Largecap Fund was the topper. The scheme offered around 14.29% return, followed by Nippon India Largecap Fund that offered 14.17%. LIC MF Large Cap Fund offered the lowest return of around 9.63%. Out of 31 schemes in the category, 28 schemes offered more than 10% return. ETMutualFunds also compared the performance of large cap schemes with their respective benchmarks during January-June 2023 and April-June 2023. During January-June 2023, out of 31 schemes, 15 schemes outperformed their respective benchmarks. During April-June 2023, 12 schemes outperformed their respective benchmarks.That indicates 19 schemes failed to beat their benchmarks. However, nine schemes outperformed their respective benchmarks in both the horizons. Six schemes failed to beat their respective benchmarks in both the horizons.
As per AMFI data, during January-May 2023 (last available data), the large cap category received a total inflow of Rs 671.49 crore, with an outflow of Rs 1,362.28 crore in May. The asset under management for large cap category as on May 31,2023 was Rs 2.51 lakh crore.
Note, the above exercise is not a recommendation. The main purpose of this exercise is just to find out how large cap schemes performed in the first half of 2023. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal.
We considered the regular and growth options. The returns for January to June 2023 were calculated from January 2,2023 to June 30,2023. The quarterly returns for the quarter that ended in June 2023 were calculated from April 3, 2023 to June 30, 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.
If you are looking for recommendations, see: Best large cap mutual funds to invest in 2023
