New Delhi. Be it mutual funds or stock market. Every investor wishes that his money grows at double the speed during the day and quadruple at the night. But, to get such amazing returns, one has to place the bets very thoughtfully. If you are also looking for a similar fund, then ICICI Prudential Large Cap Fund can be a good option. This fund has given annual returns of more than 15 percent to its investors by investing in big companies. Whether you invest in lump sum or through SIP, both the methods have yielded huge benefits.
Actually, many companies invest money in large cap mutual funds and get returns to their investors from the big companies of the market. But, ICICI Prudential Large Cap Fund stands out due to its consistently good performance. It was launched in May 2008 and since then this fund has been giving good returns continuously for 17 years. Being a large cap fund, this scheme invests in top-100 companies, which are the largest in terms of market cap. Bottom-up stock picking approach is adopted in the fund, which helps in getting better returns.
How does the company choose?
This mutual fund does not lean heavily towards any sector, but selects the most promising companies within the sector. According to Anish Tawakle, co-CIO (fund manager of equity and scheme) of the fund, for any company to be included in this portfolio, it should have a proven track record of profits, be a market leader and have appropriate compounding potential. He also believes that investors should remain cautious due to the recent increase in valuations in mid and small caps and consider rebalancing towards large caps. This is because large caps can provide better risk-adjusted returns in the current market setup.
The fund remained firm even after facing many crises
In its journey so far, this fund has faced many market events. Like the financial crisis of 2008, interest rate increase in 2013 and the Covid-19 epidemic in 2020. In all these rounds, the fund showed low volatility and gave a good experience to those investors who remained invested for a long time. In fact, investing in large caps provides stability in turbulent times and helps in long-term wealth creation, making them an important part of any core portfolio. These companies have a strong fundamental track record, which makes them less volatile than mid-caps and small-caps.
What is the return on lump sum investment?
According to Arthlabh.com, this mutual fund has given strong returns in both lump sum and SIP options since its inception on May 23, 2008. If someone had made a lump sum investment of Rs 10 lakh in the beginning (23 May 2008), then it would have reached approximately Rs 1.13 crore by 31 October 2025. Its attractive CAGR (Compound Annual Growth Rate) is 15%. An investment in the fund’s benchmark Nifty 100 TRI during the same period would have yielded Rs 68.9 lakh, which represents a CAGR of 11.3%.
SIP also did wonders
The SIP returns of the fund are also excellent. If someone had invested Rs 10,000 every month from the beginning, the total investment by now would have been Rs 21 lakh. This money would have increased to Rs 95.8 lakh by October 31, 2025. This means that SIP has given a strong return of 15.5% annually. Investing in the benchmark during the same period would have given a return of 13.8%. This means that this option has given much higher returns than the benchmark.
3 and 5 year returns are also strong
It is not that this mutual fund has given strong returns only in the long term, but its performance has been excellent in the three and five year period also. Its return in three years has been 17.8 percent and in five years it has been 22.1 percent. During this period, the benchmark returns were around 3.5 percent and 3.2 percent respectively. Due to its strong performance, it is the largest fund today, whose AUM is Rs 75,863 crore. Talking about sectoral allocation, the top holdings of the fund are Banking (23%), Automobile (10.7%) and Petroleum Products (7.6%).
(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you want to invest money in any of these, then first consult a certified investment advisor. StuffUnknownwill not be responsible for any profit or loss of yours.)
