Less risk, decent returns

The category of large-cap equity funds is the largest in terms of AUM. With assets of over Rs 5 lakh crore, the category has over 30 per cent share of the total AUM of all equity-fund categories taken together. Even if we exclude the biggest two large-cap funds which receive a bulk of equity investments from the EPFO (two ETFs from SBI Mutual Fund which manage Rs 1.8 lakh crore), the category remains the largest, with about a fifth of total equity AUM. However, with 132 funds, it is also the most crowded. This is as per the Value Research classification system, which clubs the actively managed, passive as well as focused funds investing in large-cap stocks into a single category. The investment case Large-cap funds are the most conservative lot among pure equity funds. They inherit this trait from the underlying stocks they invest in. The stocks of well-established businesses are usually the most resilient to not only the equity market's ups and downs but also to the swings