Reclaiming the lead

Summary: Large-cap funds rarely steal the spotlight, until markets turn uneasy. This review looks at why they regained relevance in 2025, how returns were driven and what recent performance and flows reveal about where investors are seeking stability again. Large-cap funds own India’s biggest, most widely tracked companies. That makes them less thrilling in runaway rallies, but far more dependable when investors want steadier returns and fewer nasty surprises. The last few years have been a useful reminder of how this category behaves. When the market rewards risk, large caps often look ordinary. When the market starts questioning risk, large caps tend to regain relevance. Last year, large-cap funds once again did what they are meant to do: deliver steadier equity returns when volatility rises elsewhere. Key highlights Performance: After two calendar years of smaller stocks dominating, 2025 has shone light on large caps. The BSE 100 TRI is up about 10 per cent, while the BSE 150 MidCap TRI is up about 4 per cent, and

This article was originally published on January 20, 2026.