The Indian equity market, as you know, has been rather volatile over the past couple of months due to ongoing geopolitical tensions and the war in West Asia. Despite this, equity mutual funds have received very good inflows – in fact, a 56% jump over February 2026 inflows.

Even large cap funds have reported a 42% jump in net inflows to the tune of Rs 2,998 crore in March 2026 compared to the previous month. It can be said that some wise investors are rightly choosing large cap funds (even though flexi-cap funds on inflows have persistently topped the charts).

Large cap funds mainly invest in the largest 100 companies on a full market capitalisation basis – the bluechips. These companies usually have a large economic moat, have better earnings visibility, and are market leaders in the respective sectors, among other traits.

In other words, they possess the required heft and the ability to weather volatility better than smaller companies – just as large ships sail better in rough waters. During an economic slowdown, large caps tend to have lower downside risk than smaller companies.

In the uncertain times we are living in, this stability is necessary for your investment portfolio.

But the question is: In reality, have large cap funds rewarded investors well?

Well, not all large cap funds have rewarded investors well.

If we consider the SIP mode, which arguably is the most popular form of investing today, some large cap funds have delivered above-average returns, some average, and some below average.

Here’s how the data looks…

SIP Returns of Large Cap Funds

Large Cap Funds3-Yr SIP (%)5-Yr SIP (%)10-Yr SIP
Top performer9.213.915.6
Bottom performer3.77.210.8
Category Median6.510.312.8
Nippon India ETF Nifty 1005.18.611.7
Nippon India ETF Nifty 50 BeES4.98.612.2
Growth and Direct Plan for all open-ended large cap funds considered.
*These index funds have been taken for comparison as they have the least expense ratio and the long performance track record in the category.
SIP returns are calculated as XIRR; Data as of 10 April 2026.
Source: valueresearchonline.com

One thing that stands out is that there is a remarkable divergence in returns between the top and bottom performers across time periods.

Some large cap funds have proved to be a delight, outperforming the category median and the Nifty 100 ETF and Nifty 50 BeES ETF, while others have disappointed investors, lagging the category median and the Nifty ETFs on SIP.

Out of the total large cap funds, 23 outperformed the Nifty 100 ETF on 3-year and 22 on 5-year SIP returns, while 19 on 10-year returns.

Compared to the category median, 15 large-cap funds outperformed on 3-year SIP returns, 13 on 5-year SIP returns, and 11 on 10-year SIP returns.

So, don’t assume that just because you chose large cap funds and took the SIP route, it’ll prove rewarding. It isn’t a sure-shot strategy or route to certain wealth creation.

What matters is prudent scheme selection to make it a delightful experience.

WhiteOak Capital Large Cap Fund: The Winner on 3-Year SIP Returns

The data shows that on 3-year SIP returns, WhiteOak Capital Large Cap Fund, launched in December 2022 and today managing assets of over Rs 1,498 crore, has topped the list with a 9.2% XIRR as of 10 April 2026.

Not only has it outperformed the category median by a wide margin, but it has also significantly overshadowed the Nifty 100 ETF and the Nifty 50 ETF. 

WhiteOak Capital Large Cap Fund holds a fairly diversified portfolio of currently 63 stocks, of which around 94% are in largecaps and nearly 3% each in midcaps and smallcaps. It follows a bottom-up stock selection process that strives to invest in strong blue-chip businesses.

As per the March 2026 portfolio, the top 10 stocks account for 45.1% and include names such as ICICI Bank, HDFC Bank, Bharti Airtel, Reliance Industries, etc.

Currently, among sectors, the fund has a higher weightage to banks & financial services, technology, and consumer discretion, etc. Overall, the fund maintains a balanced portfolio construction of pro-cyclical and counter-cyclical stocks to help reduce macroeconomic shocks.

The portfolio maintains a significantly high active share, a crucial factor in generating potential alpha over an extended period. For this purpose, a blend of growth and value investing is pursued.

The fund’s portfolio price-to-earnings (PE) ratio of 22.7 and price-to-book (PB) ratio of 3.2 reflect a value-conscious yet growth-at-a-reasonable-price approach.

That said, the fund does not shy away from churning the portfolio often. The last reported portfolio turnover ratio for the fund is 203%, which is significantly higher than the average for large-cap funds in India, reflecting its active stock-picking philosophy.

 Which Other Large Cap Funds Have Outperformed On 3-Year SIP Return?

The ones that have noticeably outperformed the category median and the Nifty 100 ETF are:

Nippon India Large Cap Fund: The Clear Winner on 5-Year and 10-Year SIP Return

This scheme was launched in August 2007 as the Reliance Large Cap Fund. After Nippon India Mutual Fund took over Reliance Mutual Fund in September 2019, it was renamed to Nippon India Large Cap Fund.

Initially, the fund focused on the top 200 companies.

However, in 2018, after it was reclassified as a large cap fund to meet the regulator’s categorisation and rationalisation norms, the fund predominantly invests in largecaps.

Currently, Nippon India Large Cap Fund is the third-largest fund in the large cap funds category in India, managing assets of over Rs 51,403 crore.

While investing, the fund seeks out high-growth opportunities. It looks at criteria such as sound management, a good track record of the company, potential for future growth, and the industry’s economic scenario.

Within largecaps and across different sectors/industries, it prefers those with established business models, sustainable and growing free cash flows, and a high return on equity (ROE) and/or having the potential to generate high ROE.

As per the March 2026 portfolio, the fund has 65 stocks, of which 85% are largecaps, 13% midcaps, and around 3% smallcaps. The fund invests strategically in emerging largecaps, i.e., midcaps and smallcaps to generate reasonable alpha over the long run.

 At present, the top 10 stocks account for 43.6% and include, ICICI Bank, Reliance Industries, Axis Bank, and others.

The fund maintains a diversified portfolio that intentionally includes both pro-cyclical (growth-oriented) and counter-cyclical (secular/defensive) stocks to manage risk and capture market opportunities.  Currently, among sectors, the fund has a higher weightage to banks, IT, and pharma & biotechnology, etc.

The fund’s portfolio price-to-earnings (PE) ratio of 23.1 and price-to-book (PB) ratio of 3.4 reflect a growth-at-a-reasonable-price approach.

Moreover, the fund follows a ‘buy-and-hold’ approach. It is last reported portfolio turnover is 24% as of March 2026. This has helped to reward its investors well on a risk-adjusted basis.

With such an investment strategy, the fund has clocked 13.9% and 15.6% XIRR on 5-year and 10-year SIP returns, respectively, as of 10 April 2026.

Which other large cap funds have outperformed on 5-Yr and 10-Year SIP returns?

On 5-year returns, Invesco India Large Cap Fund and ICICI Prudential Large Cap Fund have also clocked around 12.4% XIRR each.

On 10-year SIP returns, Invesco India Large Cap Fund and ICICI Prudential Large Cap Fund, have clocked 14.4% and 14.7% XIRR, respectively.

Likewise, there are others such as:

The bottom line

Large cap funds are a worthwhile choice for your portfolio in a volatile market with an investment horizon of around 5 years or more. However, not all large cap funds are worth your hard-earned money.

If you do not go the extra mile to make a prudent choice, you may later encounter disappointment. 

Select your scheme prudently based on a host of quantitative and qualitative factors, not just the historical returns, which may not necessarily be repeated in the future.

More importantly, add schemes to your portfolio that are not only among the best but also suitable to your risk profile, broader investment objective, the financial goals you are addressing, and the time in hand to achieve those envisioned goals.

Invest sensibly. Be a thoughtful investor.

Happy investing!

Note: We have relied on data from www.valueresearchonline.com, www.financialexpress.com, and the factsheets published by the respective fund houses throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. 

SIP returns data as of 10 April 2026. Direct Plan and Growth Option Considered. Portfolio data is as of 31 March 2026.

Disclaimer:

Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.

Rounaq Neroy has over 20 years of experience in the financial markets and investments. He is a close observer of the Indian economy and writes deeply on the capital markets, mutual funds, stocks, precious metals, asset allocation, wealth management, and investment strategy. His editorials provide interesting, actionable investment ideas to guide readers in the journey of wealth creation and make wise decisions. Rounaq was the Head of Content at PersonalFN (Quantum Information Services Pvt. Ltd.), which also owns Equitymaster.com – India’s oldest and trusted equity research house.