MF Tracker: Can Mirae Asset Large Cap Fund extend its strong run? Here’s what investors should know

Synopsis

Mirae Asset Large Cap Fund has a strong history of positive returns. However, recent performance indicates a slowdown. The fund has struggled to consistently outperform its peers and benchmark over shorter periods. Experts suggest large-cap funds remain a core part of equity portfolios for stability. Investors should consider their risk appetite and goals.

Mirae Asset Large Cap Fund (formerly known as Mirae Asset India Equity Fund) has delivered positive returns in nine out of the last 10 calendar years, according to an analysis by ETMutualFunds. Since 2016, the fund recorded a marginal negative return of around 0.64% in 2018, while delivering positive returns in all other calendar years.

Launched on April 4, 2008, the fund currently holds a three‑star rating from both Value Research and Morningstar.

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Over the past 10 years, Mirae Asset Large Cap Fund delivered its highest annual return of 38.58% in 2017, followed by 27.74% in 2021. The lowest positive return came in 2022 at 1.60%.

Trailing returns show the fund has struggled to consistently beat its category average and benchmark across short- and long-term horizons. While it outperformed its category average over the last 10 years, it remained largely in line with the benchmark.

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Recent performance has been weak: in the last three months, the fund lost 14.79%, versus a 13.49% loss for the benchmark and 12.72% for the category average. Over six months, it fell 10.63%, compared to a 9.30% decline by both benchmark and category. The 1-year return was -4.74%, against -3.87% for the benchmark and -4.37% for the category average.

Longer-term returns show a similar trend: 3-year CAGR at 9.73% (benchmark: 11.77%, category: 11.80%), 5-year CAGR at 8.61% (benchmark: 10.11%, category: 9.79%), and 10-year CAGR at 12.41% (benchmark: 12.65%, category: 11.59%). Since its inception on April 4, 2008, the fund has delivered a CAGR of 13.63%.

Based on daily rolling returns, the fund’s performance is stronger: 3-year CAGR of 14.66%, 5-year CAGR of 14.51%, and 10-year CAGR of 15.73%. Among all large & mid-cap funds with a 10-year track record, Mirae Asset Large Cap Fund has posted the highest 10-year return on a daily rolling basis.

How does the fund manager decode performance?

“The Mirae Asset Large Cap Fund focuses on acquiring quality businesses run by strong management, with robust earnings growth and reasonable valuations. While our holdings may experience volatility in choppy markets, the combination of business quality, capable management, and a margin of safety at the time of acquisition helps prevent any permanent capital impairment,” Gaurav Misra, Head – Equity, Mirae Asset Investment Managers (India), told ETMutualFunds.

He added, “We maintain a fairly diversified portfolio across sectors, ensuring broad representation while taking high active positions at the stock level. The core of the portfolio comprises quality growth at reasonable prices, with an additional 20-30% (depending on opportunities) allocated to deep value, special situations, and cyclical businesses.”

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How analysts view the fund’s performance

Rajesh Minocha, Certified Financial Planner (CFP) and Founder of Financial Radiance, told ETMutualFunds that Mirae Asset Large Cap Fund has delivered consistent returns over its history, with only one minor loss in the past ten years, even as equity funds broadly decline amid geopolitical challenges.

“This stability comes from a disciplined large-cap investment strategy that focuses on market-leading, high-quality companies with predictable earnings,” Minocha said. “The fund has been one of the few in its category to beat the benchmark index consistently.”

The scheme aims to generate long-term capital appreciation by investing predominantly in equities of large-cap companies. Managed by Gaurav Misra, the fund’s performance is benchmarked against the Nifty 100 (TRI).

As a large-cap fund, its current portfolio holds 87.22% in large caps, 6.62% in mid caps, 0.80% in others, and 5.37% in small caps. Compared with its category peers, it is overweight in large and small caps.

Is it time to shift to largecaps?

Minocha noted that large-cap funds remain important during periods of market volatility, offering investors dependable returns with lower risk exposure. He suggested that fresh investments can be made, ideally in smaller portions through SIPs or STPs when amounts are large. Lump-sum investments are also suitable if the investment horizon is at least 7–8 years, given the likelihood of market corrections.

Misra added that large-cap funds should remain a core part of equity allocations, especially amid current uncertainties. “Valuations have become more reasonable, and in periods of economic stress, large-cap earnings tend to be more resilient than smaller firms,” he said.

The fund’s sector allocation is led by banks at 27.87%, followed by IT at 9.42%, FMCG at 8.11%, and automobiles and ancillaries at 7.51%.

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Risk ratio parameters of fund

The PE and PBV ratio of the multi asset allocation fund were recorded at 33.23 times and 6.34 times respectively whereas the dividend yield ratio was recorded at 1.38 times as of February 2026.

ETMutualFunds analysed the other key ratios of the fund in a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 0.74 and an alpha of (0.11). The sortino ratio of the scheme was recorded at 0.36.

The return due to net selectivity was recorded at (0.13) and return due to improper diversification was recorded at 0.01 in the last three years.

The investment style of the fund is to invest in growth oriented large cap stocks.

Post seeing the alpha generated and the net selectivity ratio, and given the fund’s history of resilience, the important thing is what kind of downside protection has the fund shown in market corrections?

Minocha said that the fund demonstrates resilience during market downturns by incurring smaller losses than the broader market and it achieves this stability by investing in established, cash-generating companies and diversifying across sectors aligned with large-cap fund objectives.

Apart from Mirae Asset Large Cap Fund, there are around 22 other funds in the category that have completed 10 years of existence in the market. Nippon India Large Cap Fund gave the highest return of around 13.88%..

Among these 23 funds, PGIM India Large Cap Fund gave the lowest return of 19.47% in the last 10 years.

According to the expert, the performance of large-cap stocks is expected to be less volatile than other categories and the companies provide visibility into their future earnings, together with superior governance practices and safety against potential losses.

He further said that the investment continues to serve as a dependable foundation for the portfolio, delivering stable performance despite its unexciting nature.

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One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times.)

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