Top Large Cap Funds to Invest in March 2025
Many mutual fund experts are suggesting investors invest in large-cap funds. They believe that large-cap funds are more likely to perform well since the market is becoming more expensive. However, before investing in mutual funds, it is necessary to understand what a large-cap fund means.
Understanding Large Cap Funds
A large-cap fund is a type of mutual fund that invests in well-established companies with a market capitalization of over Rs.20,000 crore. These companies have a good reputation in the market and are known for their financial stability. Large-cap funds are less volatile as compared to small-cap and mid-cap mutual funds. Due to their stability in the market, these companies are less affected by market fluctuations. According to SEBI, large-cap funds must invest in the top 100 companies in terms of market capitalization.
These funds are considered a safer investment option as compared to other mutual fund categories. These are most suitable for conservative investors.
Investing in mutual fund categories other than large-cap funds for higher returns without considering the additional risk can be a mistake for investors. If you are satisfied with the 10% to 12% returns delivered by large-cap mutual funds over a long period, then you should go for these funds.
Top Recommendations of Large Cap Funds for Investment in March 2025
- Canara Robeco Bluechip Equity Fund
- Baroda BNP Paribas Large Cap Fund
- Axis Bluechip Fund
- Edelweiss Large Cap Fund
- Mirae Asset Large Cap Fund
Since the Axis Bluechip Fund has not performed well in the last three years, many investors are confused about whether to invest in this fund or not. However, the scheme has performed better than other large-cap funds in the last 10 years. It has a great history record in its performance. But if you are still not sure about this fund, then you can skip it. Advisors say that mutual fund schemes should be evaluated based on their long-term performance.
Why Large-Cap Funds Remain a Strong Choice?
Equity investors are worried about the rising volatility and uncertainties in the financial market. Despite this volatility, the market is backed up by the Indian economy and better fundamentals. However, it is not possible to completely ignore this volatility. That is why experts are asking investors to proceed carefully.
The total return index in 2018 and stricter investment rules introduced by SEBI have made things difficult for large-cap funds. However, these funds still have the potential to offer inflation-adjusted returns without high volatility. Investors frequently recommend investing in large-cap stocks because they offer more stability and less volatility. This makes them a safer choice for most investors, particularly those with a lower risk tolerance.
