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Summary: Large-cap funds are being tested right now. But some are holding up much better. Find their names below and whether they deserve a place in your portfolio.
Equity markets have had a rough start to 2026. But this time, the pain has not come from the usual suspects.
Small and mid caps, which are normally the first to crack in a falling market, have recovered much faster. The real pressure has been in large caps. The BSE Sensex TRI is down nearly 12 per cent from its January 2, 2026 peak, while the BSE 100 is down about 9 per cent.
The fall comes from their heavy exposure to IT and financial stocks, both of which have been under pressure. Large IT stocks have been hit particularly hard amid worries over AI disruption and its impact on future growth. The Nifty IT TRI is down about 25 per cent from the market peak.
Financials, meanwhile, are bearing the highest brunt of foreign investor selling. FPIs have been heavy sellers in financial stocks, pulling out over Rs 30,500 crore in April, according to the latest FPI investment data. That selling has added to the pressure on large-cap indices.
But even in this sharp fall, not all large-cap funds have behaved the same way. Some have fallen more than the market. Others have held up much better.
Here is a look at both ends of the large-cap fund universe.
The worst-hit large-cap funds
| Fund name | Point-to-point (%)* | AUM (Rs crore) | VR Rating (out of 5) |
|---|---|---|---|
| LIC MF Large Cap Fund | -10.48 | 1,352 | 2 |
| Mahindra Manulife Large Cap Fund | -10.42 | 701 | 4 |
| Aditya Birla Sun Life Large Cap Fund | -9.98 | 28,970 | 4 |
| UTI Large Cap Fund | -9.84 | 12,053 | 3 |
| Franklin India Large Cap Fund | -9.56 | 7,236 | 4 |
| *From January 2, 2026 to May 18, 2026; Only active large-cap funds considered. Recently-launched JioBlackRock and Parag Parikh large-cap funds were excluded from the analysis. | |||
The most resilient large-cap funds
| Fund name | Point-to-point (%)* | AUM (Rs crore) | VR Rating (out of 5) |
|---|---|---|---|
| Quant Large Cap Fund | -2.58 | 3,112 | 2 |
| Bank of India Large Cap Fund | -3.93 | 213 | 4 |
| Samco Large Cap Fund | -4.87 | 109 | Unrated |
| Taurus Large Cap Fund | -5.25 | 51 | 3 |
| Baroda BNP Paribas Large Cap Fund | -5.63 | 2,579 | 4 |
| *From January 2, 2026 to May 18, 2026; Only active large-cap funds considered. | |||
Most active funds held up better
Of the 33 large-cap funds, most have still managed to fall less than the BSE 100 in this downturn and only 10 have underperformed the index.
This suggests active management has helped in this crash, with many funds avoiding the full force of the index decline. But one short period is not enough to judge a fund decisively.
To choose the right large-cap fund, look for consistency across market cycles, downside control and long-term performance. That is where Value Research Fund Advisor can help. Our analysts scan the mutual fund universe, study funds across market phases and identify the ones best suited to your goals.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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