Nippon India Large Cap Fund Crosses ₹50,000 Crore AUM, Shines as Investor Favorite

New Delhi: Nippon India Large Cap Fund has achieved a major milestone, crossing ₹50,000 crore in Assets Under Management (AUM). With this, the fund joins the elite club of large-cap mutual funds in India, including ICICI Prudential Large Cap Fund and SBI Large Cap Fund, which have similarly surpassed the ₹50,000 crore mark.

Why Large Cap Funds?
Large-cap mutual funds are considered a safe investment option for new and risk-averse investors due to their investment portfolio. These funds primarily invest in blue-chip companies with strong business models and leadership positions in their respective sectors. As a result, they tend to be more stable and resilient during economic downturns and market volatility compared to mid-cap or small-cap funds.

Impressive Performance
Over the past few years, large-cap funds have delivered strong returns. The Nippon India Large Cap Fund has outperformed its peers, generating 18.46% returns over 3 years and 22.43% over 5 years. In comparison, ICICI Prudential Large Cap Fund returned 17.46% (3 years) and 19.98% (5 years), while Invesco India Large Cap Fund posted 16.68% (3 years) and 17.67% (5 years). Unlike index-tracking funds, Nippon India Large Cap Fund follows active investment strategies, aiming to outperform benchmark indices and deliver value appreciation.

Backbone of Mutual Fund Investments
Market experts consider large-cap funds the backbone of mutual fund investing due to their relatively stable long-term returns and potential for regular dividends. Large-cap companies are highly liquid, making it easier for fund managers to trade shares without significant price fluctuations. Additionally, these funds invest in established companies across multiple sectors, providing built-in diversification and reducing the impact of poor performance by any single company or sector.

What is a Large Cap Fund?
Large-cap funds primarily invest in India’s top 100 companies by market capitalization. These funds are regarded as stable, reputable, and financially robust, offering lower risk compared to mid-cap or small-cap funds. With the potential for steady long-term returns, they are ideal for investors with a lower risk appetite seeking consistent growth and stability.