Only one-fourth of large-cap funds beat Sensex in 3 months while the markets grew 12%

While 89 large cap schemes could not beat the Sensex, 28 funds did beat the index. Reliance India Opportunities Fund – Series A is the best performer in this category

Kumar Shankar Roy Jun 4, 2019

The Sensex is trading above record 40,000 levels. Thanks to the rally after election results, markets have been in a rip-roaring form. In fact, in the last three months the 30-share Sensex has risen 11.66%. But, if you expected your large cap mutual funds to reflect those gains, you are in for a disappointment. Just 24%, or roughly one out of four large cap funds have managed to best Sensex’s returns in these three months.

We looked at 3-month returns of large cap funds across the industry to understand whether how these MFs have performed vis a vis the Sensex. We looked at NAV returns of 117 large cap schemes, which manage over Rs 2.5 lakh crore investors’ money. These large cap funds consist of actively managed schemes (where a fund manager takes investment calls) and index & ETFs.

Below is a table telling you how the 3-month returns of large cap funds stack up against the Sensex. Do note the Sensex is not the stated benchmark of all large cap funds, but the index performance can be compared to that of large cap funds.

Large cap – Last 3 months *
Number of funds that beat Sensex 28
% share 24
Number of funds that failed to beat Sensex 89
% share 76
Sensex return in 3 months 11.66%
* March 3 to June 3, 2019

Let us have a detailed look at the best performing large cap funds in the last three months. While 89 large cap schemes could not beat the Sensex, 28 funds did beat the index. Reliance India Opportunities Fund – Series A is the best performer in this category, as the fund delivered nearly 15% return in this period. It is followed by BNP Paribas Large Cap Fund with 13.7% gain. The DSP Top 100 Equity Fund was the 3rd best with 13.65% return.

These three funds are followed by BHARAT 22 ETF (13.47%), ICICI Prudential Growth Fund – Series 1 (13.14%), L&T India Large Cap Fund (13.1%), Tata Large Cap Fund (12.94%), Motilal Oswal Focused 25 Fund (12.87%), HDFC Top 100 Fund (12.79%) and SBI Bluechip Fund (12.74%). Do remember that the HDFC Top 100 Fund and SBI Bluechip Fund are some of the biggest large cap funds in the industry.

Speaking about the big large cap funds, the SBI ETF Nifty 50 has given 11.51% return in the last 3 months ended June 3, 2019. Aditya Birla Sun Life Frontline Equity Fund, the third biggest large cap fund, delivered 9.26%. Another giant fund – ICICI Prudential Bluechip Fund gave investors 9.31% return in the same phase.

The last three months have also seen poor performances from some large cap funds. Most of these funds fall into the index & ETF category. At a time when the Sensex gained 11.66% return, the SBI ETF Quality inched up by just 3.76%. It is followed by DSP Nifty Next 50 Index Fund with 4.56%, followed by ICICI Prudential Nifty Next 50 ETF (4.56%), IDBI Nifty Junior Index Fund (4.62%), Aditya Birla Sun Life Nifty Next 50 ETF (4.63%), ICICI Prudential Nifty Next 50 Index Fund (4.66%), and Reliance ETF Junior BeES (4.77%) to name a few. The lone actively managed scheme between the 10 worst performers was JM Large Cap Fund with 4.94%.

RupeeIQ take – Large cap funds have, of late, failed to keep up with markets. It is understood that a concentrated rally situation in indices like Sensex where a few stocks pull up the index often is hard to replicate at a fund portfolio level. Usually, equity funds always beaten a passive index during the upturn. But over the last 12 months or so, a large share of large cap equity funds has not been able to deliver alpha especially during short periods of time.

Disclaimer: The article is only for informational purposes. Investors are requested to consult their financial, tax and other advisors before taking any investment decision.

Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at

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