Top-Rated Large Cap Mutual Funds with 22.9% CAGR in 5 Years

For investors who value stability, consistency, and long-term wealth creation, largecap mutual funds remain a cornerstone of portfolio building. These funds allocate their investments to the top 100 companies by market capitalisation, which are typically well-established leaders in their respective sectors. Known for their robust fundamentals and reliable performance, largecap funds are a preferred choice for investors who seek growth but want to manage volatility effectively.

In this article, we explore the five top-rated largecap mutual funds that have delivered more than 22.9% compound annual growth rate (CAGR) over the last five years. We will also discuss why largecap funds should be a part of every investor’s portfolio, how mutual funds are rated, and the unique characteristics that make these five funds stand out.

What Are Largecap Mutual Funds?

Largecap mutual funds are equity schemes that primarily invest in the top 100 companies listed in India. These companies are industry leaders with proven track records, making them relatively safer compared to midcap or smallcap investments.

The advantages of largecap funds include:

• Stability during volatile market phases
• Proven business models backed by strong corporate governance
• Higher liquidity due to large trading volumes
• Consistency in long-term wealth creation

For investors looking for a dependable equity investment option, largecap funds provide the right balance between safety and returns.

Why Should You Include Largecap Mutual Funds in Your Portfolio?

Investing in largecap mutual funds offers several benefits:

1. Stability in volatile markets – Largecap companies tend to be less affected by market turbulence.
2. Proven track record – These companies have successfully navigated multiple economic cycles.
3. Liquidity – Investors can easily buy or sell units due to high trading volumes.
4. Long-term growth – Largecap funds are well-suited for investors aiming to create wealth over 5–10 years.

For these reasons, financial advisors often recommend allocating a portion of every investor’s core portfolio to largecap funds.

Understanding Mutual Fund Ratings

Before diving into the top-performing funds, let’s understand how mutual funds are rated.

CRISIL Mutual Fund Rating

CRISIL evaluates mutual funds based on risk-adjusted returns, consistency, and historical performance. Funds are ranked from 1 to 5, with Rank-1 being the best. On platforms like Moneycontrol, these ranks are represented as star ratings for easier understanding.

Value Research Online (VRO) Rating

Value Research assigns star ratings from 1 to 5, based on long-term risk-adjusted performance. A 5-star rating signifies funds that belong to the top 10% in their category.

For this article, we have considered only those largecap funds that have secured either 4-star or 5-star ratings from both CRISIL and Value Research.

5 Top-Rated Largecap Mutual Funds with Over 22.9% CAGR in 5 Years

Here are the five best-performing largecap mutual funds that have consistently delivered outstanding results:

Fund Name	VRO Rating	CRISIL Rating	5Y CAGR
Nippon India Large Cap Fund	5 Star	5 Star	27.5%
ICICI Prudential Largecap Fund	5 Star	5 Star	24.6%
Invesco India Largecap Fund	4 Star	4 Star	23.4%
Kotak Bluechip Fund	4 Star	4 Star	22.9%
Edelweiss Large Cap Fund	4 Star	4 Star	22.9%

Data as of 30th June 2025

Let’s look at each of these funds in detail.

Nippon India Large Cap Fund

This fund has emerged as one of the strongest performers in the largecap category, delivering 27.5% CAGR in the last five years. A ₹1 lakh investment would have grown to more than ₹3.3 lakh during this period.

• Annualised Returns: 1 Year – 7.8%, 3 Years – 26.3%, 5 Years – 27.5%, 10 Years – 15.4%
• Ratings: 5 Star by both VRO and CRISIL
• AUM: ₹41,750 crore

Nippon India Large Cap Fund is ideal for investors with a moderate-to-high risk appetite who want steady long-term growth.

ICICI Prudential Largecap Fund

Formerly known as ICICI Prudential Bluechip Fund, this scheme focuses on industry-leading companies and has delivered a CAGR of 24.6% over five years.

• Annualised Returns: 1 Year – 8.8%, 3 Years – 23.5%, 5 Years – 24.6%, 10 Years – 15.2%
• Ratings: 5 Star by both VRO and CRISIL
• AUM: ₹69,762 crore

This fund is best suited for conservative to moderate investors who want consistent performance through systematic investment plans.

Invesco India Largecap Fund

Though smaller in size compared to its peers, Invesco India Largecap Fund has delivered strong returns of 23.4% CAGR over five years.

• Annualised Returns: 1 Year – 9.3%, 3 Years – 23.7%, 5 Years – 23.4%, 10 Years – 14.7%
• Ratings: 4 Star by both VRO and CRISIL
• AUM: ₹1,488 crore

With a relatively smaller corpus, this fund provides agility in stock selection, making it suitable for investors willing to take moderate risk for long-term rewards.

Kotak Bluechip Fund

Kotak Bluechip Fund is a steady player in the largecap space, with a five-year CAGR of 22.9%. It focuses on companies with sound fundamentals and sustainable growth potential.

• Annualised Returns: 1 Year – 7.5%, 3 Years – 21.2%, 5 Years – 22.9%, 10 Years – 14.3%
• Ratings: 4 Star by both VRO and CRISIL
• AUM: ₹10,138 crore

This fund is suitable for conservative investors seeking stability while still capturing long-term equity growth.

Edelweiss Large Cap Fund

Edelweiss Large Cap Fund has delivered 22.9% CAGR over five years, making it one of the consistent performers in the category.

• Annualised Returns: 1 Year – 6.5%, 3 Years – 22.5%, 5 Years – 22.9%, 10 Years – 14.0%
• Ratings: 4 Star by both VRO and CRISIL
• AUM: ₹1,270 crore

The fund is better suited for experienced investors who regularly track their portfolios and want to diversify within the largecap space.

Should You Invest in All Five Funds?

While all five funds are strong performers, it is not advisable to invest in all of them. Instead, investors should:

• Select two or three funds to avoid overlap
• Diversify across fund houses and strategies
• Prefer SIPs for disciplined wealth creation
• Stay invested for at least five to seven years

This approach ensures risk diversification while maximizing growth potential.

Conclusion

Largecap mutual funds remain one of the most reliable ways to participate in equity markets. They offer a blend of stability and growth, making them suitable for both new and seasoned investors. The five funds discussed above—Nippon India, ICICI Prudential, Invesco India, Kotak Bluechip, and Edelweiss Large Cap—have delivered more than 22.9% CAGR in the last five years, making them worthy candidates for your portfolio.

If you are looking to build long-term wealth with relatively lower risk compared to mid and smallcap funds, these top-rated largecap schemes should be part of your investment plan. Always align your choices with your financial goals and consult a professional advisor before making final decisions.