4 Large Cap Mutual Funds that Consistently Delivered Positive Returns Since 2018
According to a recent analysis, four of the large-cap mutual funds have been consistent positive performers, with annual returns showing no negative return since 2018. What is important here is that this analysis uses 2018 as a starting point the year the Securities and Exchange Board of India introduced total return indices (TRI) as a benchmark, providing a standard by which one could measure dividend-inclusive returns. About 24 large-cap funds have been active since 2018. Of these, only a few have provided good returns consistently.
Large Cap Funds that Delivered: A Decade of Returns since 2018
Among the notable performers is the Canara Robeco Bluechip Equity Fund. It tracks BSE 100 – TRI as its benchmark and has witnessed net positive returns each year from 2018 to 2024. However, if seen against the benchmark, the Canara Robeco Bluechip Equity Fund could not do much better for the last three years that is for 2021 to 2023.
The Edelweiss Large Cap Fund and HDFC Top 100 Fund also have not seen negative returns over each year since 2018. Both of these schemes benchmark themselves against NIFTY 100 – TRI. While the return might be positive for consecutive years, both have lost to their respective benchmarks for four years. Edelweiss Large Cap Fund failed to deliver in 2018, 2019, 2021, and 2022. HDFC Top 100 Fund trailed the benchmark in 2018, 2019, 2020, and in 2024 up to date.
JM Large Cap Fund is the last fund on this list. This fund has delivered positive returns annually since 2018. Relative to the index, BSE 100 – TRI, the JM Large Cap Fund underperformed its benchmark in four different years: 2018, 2019, 2021, and 2022.
Additional Large Cap Funds with Good History
While the focus of analysis runs deep on funds established post-2018, many large cap funds had still managed to avoid adverse annual returns. For instance, Mahindra Manulife Large Cap Fund, established in 2019, had been able to remain a plus performer every year. Sundaram Large Cap Fund and Quant Large Cap Fund, which has been around for five years and three years respectively, did not report any down return during its tenure.
SEBI Standardises Large Cap Mutual Fund Benchmarks
Prior to SEBI’s introduction of total return indices in 2018, no benchmark existed which accounted for both capital appreciation and dividends. The large-cap mutual fund also lacked a well-defined definition. Instead, the funds would change from mid-cap stocks to small-cap stocks based on market requirements. Since SEBI re-categorised mutual fund schemes in 2017, large cap schemes are invested largely in the top 100 stocks by market capitalization. Benchmarks are standardized and now Nifty 100 TRI and Sensex 100 TRI act as a constant reference point for the large cap schemes.
Benchmarking for Fund Selection
This study was based on only actively managed large-cap funds whose records dated back to 2018 with annual performance of every fund compared against its appropriate index- either Nifty 100 – TRI or BSE 100 – TRI. It is worth mentioning that this study was to identify large-cap funds with a positive annual return rather than as an investment recommendation. If consistent positive returns make them an attractive choice, however, they should not be a criterion in choosing the funds. Mutual fund choices also need to consider investment horizons, risk tolerance, and the goal of achieving financial milestones.
