Top Large Cap vs Top Index Fund in 3 Years: Which has given higher return on Rs 12,500 monthly SIP investment; see calculations

Top Large Cap vs Top Index Fund in 3 Years: Large cap mutual funds invest most of their money in large cap companies. These firms, ranked from 1st to 100th in terms of market capitalisation, are fundamentally strong and can face market fluctuations better than mid cap and small cap mutual funds.

As per Securities Exchange Board of India (Sebi) criterion, large cap mutual funds need to have 80 per cent of their investments in large cap stocks.

This provides them stability when the market falls. Equity mutual fund investors who want to take the least risk with their money consider large cap mutual funds as a reliable option.

However, AMFI keeps all large cap mutual funds under the high-risk category.     

Index mutual funds are passive funds that follow a particular index.

The fund manager of an index fund has the same stocks in its portfolio as that of the index the scheme is tracking.

If a company is moving out of the index, the fund manager will also sell the stocks.

On the other hand, if a new company is moving in, the fund manager will buy those stocks.

Index funds are considered good for beginners as they don't have to actively track the fund manager's choice of stocks or strategy.

Index funds have a low expense ratio compared to other equity stocks.

The Sebi's mandate directs index funds to have a minimum 95 per cent of investments in securities of a particular index.

Top large cap mutual fund in 3 years

The top large cap mutual fund in terms of highest SIP returns (XIRR) in the last 3 year is ICICI Prudential BHARAT 22 FOF Direct - Growth.

It has given 42.38 per cent annualised return during that period.

The same fund has also given the highest annualised lump sum returns in 3 years at 34.76 per cent.

Top index fund in 3 years

UTI Nifty200 Momentum 30 Index Fund Direct - Growth is the top index mutual fund in terms of highest annualised SIP returns in the 3-year period.

It has given 37.33 per cent annualised returns during that time frame.

In terms of highest annualised lump sum (CAGR) returns, Motilal Oswal Nifty Midcap 150 Index Fund Direct - Growth tops the tally with 23.41 per cent annualised returns.

Return on Rs 12,500 monthly SIP in top large cap fund in 3 years

A Rs 12,500 monthly SIP in ICICI Prudential BHARAT 22 FOF Direct - Growth in 3 years, or a total investment of Rs 4.5 lakh, has turned into Rs 8.12 lakh as on today's date.

Return on Rs 12,500 monthly SIP in top index funds in 3 years

A Rs 12,500 monthly SIP in UTI Nifty200 Momentum 30 Index Fund Direct - Growth has given a total of Rs 7.61 lakh in 3 years.
A Rs 12,500 monthly SIP in Motilal Oswal Nifty Midcap 150 Index Fund Direct - Growth has given a total of Rs 7.41 lakh in the 3-year period.