5 large cap mutual funds completed 25 years. Here’s how they performed

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Mutual fund advisors suggest investors to choose schemes that have been around for some time and seen many market phases. Out of hundreds of schemes in the Indian mutual fund industry, only 50 have completed 25 years. And out of these 50, there are only five large cap funds. In this article we will examine how these large cap funds have performed over the last 25 years.

Franklin India Bluechip Fund, JM Large Cap Fund, UTI Mastershare Fund, HDFC Top 100 and Taurus Largecap Equity Fund are the five large cap schemes that have been around for the longest time in the market. Let’s look at their returns since inception.

Scheme name Inception date Returns since inception
UTI Mastershare Fund 10/15/1986 17.44%
Franklin India Bluechip Fund 12/1/1993 19.47%
HDFC Top 100 Fund 10/11/1996 19.0%
JM Large Cap Fund 4/1/1995 8.79%
Taurus Largecap Equity Fund 2/28/1995 10.68%

Source: Morningstar

These schemes have gone through a lot of changes in the last 25 years. For example, some of these schemes had their names changed, some saw mergers and all of them saw a change in their benchmark in 2018.. Data from ACE MF suggests that these schemes have mostly beaten their benchmarks year on year, except for some blips. However, data can’t be fully relied on in this case. That is because maximum large cap funds were not benchmarked against the TRI (total return index) before 2018. Also, before the re-categorisation of mutual fund schemes in 2017, many large cap funds had higher exposure to mid cap stocks which pushed their returns up. Post 2017, large cap funds are mandated to invest only in the universe of 100 top stocks by market capitalisation.

However, some of these funds have done well even after the changes that were made in recent times. Let’s look at these schemes and how they have changed and fared over the years.

UTI Mastershare Fund: This is the oldest scheme that exists in the large cap category. Launched in 1986, the fund has offered 14.21% returns since inception. The fund is currently benchmarked against S&P BSE 100 TRI and manages AUM worth Rs 10,570 crore, as on August end. The scheme has outperformed its benchmark 15 times and underperformed 10 times in the last 25 years. After the enforcement of TRI benchmark and the top 100- stock universe for large caps, the scheme has outperformed the benchmark three times in four years. Here’s a look at its performance graph.

Source: Value Research

Franklin India Bluechip Fund: This scheme was launched in January, 1993 and manages a total AUM of Rs 6,574 crore. The scheme has offered 19.47% returns since inception. The fund is benchmarked against NIFTY 100 TRI. The fund has beaten its benchmark 17 times in the last 25 years. In the last four years, since the introduction of TRI and re-categorisation of mutual funds, the scheme has beaten the benchmark only once. The scheme has taken a hit on its performance since the re-categorisation of mutual funds in 2017. Here’s a graph of the scheme’s recent performance.

Source: Value Research

HDFC Top 100 Fund: Earlier known as the HDFC Top 200 Fund, this scheme is among the most popular large cap funds in the industry. The scheme was launched in November, 1996 and has offered 19% return since then. The fund manages an AUM of Rs 22,306 crore. The scheme is benchmarked against the NIFTY 100 TRI. The scheme has beaten its benchmark 10 times in the last 25 years. In the last four years, it managed to beat its benchmark only once. Here’s a look at its recent performance:

Source: Value Research

JM Large Cap Fund: Earlier known as JM Equity Fund, the scheme was launched in January 1995. The scheme manages a total AUM of Rs 50 crore and has offered 8.79% returns since inception. The scheme is benchmarked against S&P BSE 100 – TRI and has beaten its benchmark 9 times in the last 25 years. In the last four years, the scheme has outperformed its benchmark only once. Here’s a look at its recent performance:

Source: Value Research

Taurus Largecap Equity Fund: This scheme was launched in February, 1995 and was earlier known as Taurus Bonanza Fund. The scheme manages a total AUM of Rs 36 crore and has given 10.68% returns since inception. In the last 25 years, the scheme has beaten its benchmark only 8 times. In the last 4 years, the scheme has not been able to outperform its benchmark. Here’s a look at its recent performance:

Source: Value Research

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