Nippon India Large Cap Fund – Direct Plan – Growth has emerged as the top-performing large-cap scheme across key long-term periods and, more importantly, it is the only large-cap fund to have delivered over 20% annualised returns in both 3-year and 5-year time frames.
How the fund has outperformed its peers
Over the last 3 years, the fund has delivered 20.66% CAGR (Compound Annual Growth Rate). Over 5 years, returns have improved further to 21.46% CAGR. Even over a full 10-year period, the fund has generated a strong 15.94% CAGR, which is impressive for a large-cap strategy.
Now compare this with the category averages. Large-cap funds, on average, have delivered 15.61% in 3 years, 15.34% in 5 years, and 13.28% in 10 years.
This means Nippon India Large Cap Fund has beaten its peers by a wide margin across market cycles — not just in a short rally.
A long and consistent track record
Nippon India Large Cap Fund – Direct Plan was launched on January 1, 2013. Its returns since launch stand at 16.34% (annualised), pointing to consistent long-term performance.
The fund tracks the BSE 100 TRI, which represents India’s top 100 listed companies. Beating this benchmark consistently is not easy for large-cap funds, making the fund’s long-term outperformance even more noteworthy.
With assets under management of Rs 50,312 crore (as of November 30, 2025), it is also one of the biggest funds in the category, indicating strong investor trust. The expense ratio of 0.66% remains reasonable for a fund of this size.
Portfolio positioning: Where the fund is betting
The fund’s portfolio shows a clear tilt towards sectors that have driven India’s earnings growth over the past few years.
Financials: 33.32% (vs category average of 30.65%)
Consumer Discretionary: 12.73% (vs 10.66%)
Energy & Utilities: 11.57% (broadly in line with category)
Consumer Staples: 10.51% (vs 8.54%)
Industrials: 9.51% (vs 7.89%)
This slightly higher allocation to financials and consumption-linked sectors has helped the fund capture both credit growth and domestic demand trends.
Top stock holdings
At the stock level, the portfolio is anchored around well-established large-cap leaders:
HDFC Bank: 9.09%
Reliance Industries: 6.09%
ICICI Bank: 5.54%
Axis Bank: 3.97%
State Bank of India: 3.81%
These holdings reflect a preference for market leaders with strong balance sheets and long-term earnings visibility.
Risk profile: High risk, but controlled
Risk level: Very High
Average return: 18.55%, higher than the benchmark’s 14.16%
Volatility (standard deviation): 11.56%, lower than the benchmark’s 12.18%, indicating relatively better stability
Risk-adjusted return (Sharpe ratio): 1.07, showing better reward for the risk taken
Downside risk protection (Sortino ratio): 1.65, indicating stronger performance during market falls
Market sensitivity (beta): 0.92, meaning the fund moves slightly less than the market
Excess return over benchmark (alpha): 5.00, reflecting consistent outperformance
What investors should keep in mind
While the numbers clearly place Nippon India Large Cap Fund among the best performers in its category, investors should remember that past returns do not guarantee future performance. Market conditions change, sector leadership rotates, and even top-performing funds can go through phases of underperformance.
Instead of chasing returns alone, investors should also look at risk-adjusted performance, portfolio composition, expense ratio, fund consistency, and how the fund fits into their overall asset allocation.
Who should invest in large-cap funds?
Large-cap funds are best suited for long-term goals where stability and steady compounding matter as much as headline returns.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.