Top Large Cap vs Top Index Mutual Funds in 5 Years: Which of them has generated larger corpus on Rs 10,000 monthly SIP investment? Know here

Top Large Cap vs Top Index Mutual Funds in 5 Years: Large cap mutual funds and index mutual funds fall in the category of equity funds, which are suitable for an investor with a long-term investment horizon.

Both can perform poorly during market fluctuations, but they can give stable returns in the long run.

Know the difference between two and which of them of has given the highest SIP returns in 5 years. 

Large Cap mutual funds

As per Securities Exchange Board of India (Sebi), large cap mutual funds need to have at least 80 per cent investments in large cap stocks.

Large cap firms are the top 100 companies in terms of market capitalisation.

These firms are fundamentally strong and can withstand market fluctuations better than most mid cap and small cap companies.

Such a composition makes large cap funds fundamentally strong.

Large cap funds are the last to fall during a market downturn.

But they can slip, and it makes large cap funds a risky choice for the short term. These funds, however, may give stable returns in the long run.

Index mutual funds

They follow a market index such as Nifty 50, Nifty Next 50, BSE 500, S&P, Nasdaq, etc.

The fund will have the stocks in the same composition as in the index it is following.

Funds are known as passive funds since the fund manager doesn't have to do much research for the shuffling of stocks.

Beginner investors and those with a little knowledge of mutual funds often invest in index funds since they don't have to track the stock combination.

The manager will shuffle the stocks once the index does so. 

Top large cap mutual fund with best SIP return in 5 years 

ICICI Prudential BHARAT 22 FOF Direct - Growth is the top large cap fund in terms of highest annualised SIP return (XIRR) in 5 years.

The fund has given a 28.41 per cent annualised return in the 5-year time frame.

It has assets under management (AUM) of Rs 2,178 crore, while its net asset value (NAV) is Rs 28.29.

Benchmarked against BSE Bharat 22 TRI, the fund has given a 17.22 per cent annualised return since its inception in June 2018. 

With an expense ratio of 0.12 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment.

A Rs 10,000 monthly SIP investment in the fund in the 5-year time frame, or Rs 6 lakh investment overall, has grown to Rs 13,27,959.

Top index mutual fund with best SIP return in 5 years

Motilal Oswal Nifty Midcap 150 Index Fund Direct - Growth is the top large cap fund in terms of highest annualised SIP return in 5 years.

The fund has given a 22.90 per cent annualised return in the 5-year duration.

It has an AUM of Rs 1,982 crore, while its NAV is Rs 33.18.

Benchmarked against NIFTY Midcap 150 TRI, the fund has given a 24.27 per cent annualised return since its inception in August 2019.

It has an expense ratio of 0.3 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 510 as the minimum lump sum investment.

A Rs 10,000 monthly SIP investment in the fund in 5 years has jumped to Rs 11,26,095.