Allocate 30-70% of equity portfolio, based on risk profile

Largecap equity funds have delivered steady performance in the past year. For the year ended November 18, 2025, they returned 9.2 per cent on average, compared to 8.6 per cent for midcap funds and 2.4 per cent for smallcap funds.

- SARBAJEET K SEN

“Largecap funds provide stability, liquidity, and consistency—three essential pillars of long-term wealth creation. These companies have proven track records, predictable earnings, and leadership positions in their respective industries. They should be permanent, core holdings in every investor's equity portfolio,” says Sirshendu Basu, head - products, Bandhan Asset Management Company (AMC).

Despite this resilience, investor interest remains muted. According to data from the Association of Mutual Funds in India (Amfi), largecap equity funds saw net inflows of ₹971 crore in October 2025, the lowest since July 2024.

The creamy layer

Largecap funds invest a minimum of 80 per cent in the top 100 companies by market capitalisation. Indices such as the Nifty 50, Nifty Next 50, and Nifty 100 track this segment. The Nifty 100 Index offers diversified exposure to 17 sectors. Investors can choose from both active and passive largecap fund options.

Steady compounders