How to Select the Best Large Cap Funds for a 10+ Year Investment Horizon? (Based on Rolling Return data as on 21-02-2025)
How to Select the Best Large Cap Funds Using 10-Year Rolling Return Analysis?
(For Educational Purposes Only – Not Investment Advice)
? Introduction
Large Cap Mutual Funds are one of the most stable equity investments, primarily investing in top 100 companies by market capitalization. These funds offer consistent returns with lower volatility than mid-cap and small-cap funds, making them suitable for long-term wealth creation.
However, selecting the best Large Cap fund requires a data-driven approach rather than relying on recent performance alone. This blog explores how to use 10-year rolling returns to identify the best funds for long-term investment.
⚠ Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Mutual fund investments are subject to market risks, and past performance is not a guarantee of future returns. Always consult a CWM® or Professional financial advisor before making investment decisions.
? Why Use 10-Year Rolling Return Data?
Benefits of Rolling Return Analysis
✅ Provides a long-term perspective – Covers both bull and bear market cycles, reducing bias from temporary fluctuations.
✅ Eliminates point-to-point bias – Unlike standard return calculations, rolling returns show fund performance across different time periods.
✅ Measures consistency – Helps identify funds that perform well across various market conditions.
✅ Improves risk assessment – Evaluates maximum drawdown, showing how much the fund has fallen during market corrections.
? Key Parameters for Selecting the Best Large Cap Funds
To evaluate Large Cap funds, we focused on the following key metrics:
1️⃣ 10-Year Rolling Returns (%) – Measures the annualized return over multiple 10-year periods.
2️⃣ Drawdown (%) – The maximum fall from a peak during the selected period, indicating risk.
3️⃣ Median Return (%) – Represents the middle value of all rolling return observations, ensuring stability.
4️⃣ Minimum Return (%) – The lowest return observed in any rolling period, crucial for downside protection.
5️⃣ Return Distribution:
- More than 12% Returns (%) – Shows how often the fund delivered strong returns.
- 8-12% Returns (%) – Indicates moderately good periods.
- 0-8% Returns (%) – Reflects underperformance.
6️⃣ Risk-Adjusted Score – A custom metric to compare return per unit of risk (drawdown).
Risk-Adjusted Score = [10Y Return (%) / Absolute Drawdown (%)]×100
A higher score means a fund is generating better returns relative to its risk.
? Top 5 Large Cap Funds Based on 10-Year Rolling Return Data
(This ranking is for educational purposes and does not constitute financial advice.)
| Rank | Fund Name | 10Y Returns (%) | Drawdown (%) | Risk-Adjusted Score | % of Time Returns >12% |
| ? 1 | Nippon India Large Cap Fund | 12.44% | -40.38% | 30.82 | 100.00% |
| ? 2 | ICICI Prudential Bluechip Fund | 12.58% | -37.16% | 33.85 | 100.00% |
| ? 3 | HDFC Large Cap Fund | 11.42% | -41.04% | 27.85 | 100.00% |
| 4 | Mirae Asset Large Cap Fund | 11.87% | -37.57% | 31.6 | 100.00% |
| 5 | SBI Bluechip Fund | 11.32% | -37.17% | 30.45 | 100.00% |
? Why These Funds Were Selected? (For Learning Purposes)
Each of these funds has demonstrated strong performance in different aspects. Here’s a deeper look at why they were ranked in this order:
✅ 1. Nippon India Large Cap Fund – Best Overall (Balanced Risk & Return)
✔ Highest Risk-Adjusted Score (30.82) – Meaning it provides the best return per unit of risk.
✔ 10-Year Return: 12.44% – Among the highest in the category.
✔ 100% of rolling periods had returns above 12% – Indicates consistent performance across different market conditions.
? Conclusion: If you want a balance between high returns and controlled risk, this fund has shown consistent performance with stability.
✅ 2. ICICI Prudential Bluechip Fund – Best Risk-Adjusted Performer
✔ Highest Risk-Adjusted Score (33.85) – Best risk-return balance in the category.
✔ 10-Year Return: 12.58% – Slightly higher than Nippon India Large Cap.
✔ 100% of the time, returns were above 12% – Strong historical consistency.
? Conclusion: Suitable for investors looking for stable returns with lower drawdowns.
✅ 3. HDFC Large Cap Fund – Strong Stability
✔ Risk-Adjusted Score (27.85) – Indicates a good risk-return balance.
✔ 10-Year Return: 11.42% – Lower than Nippon & ICICI but very stable.
✔ 100% rolling periods had returns above 12%.
? Conclusion: A good choice for those who prioritize capital protection and lower volatility.
✅ 4. Mirae Asset Large Cap Fund – Strong Contender
✔ Risk-Adjusted Score (31.60) – One of the best-performing funds in the category.
✔ 10-Year Return: 11.87% – Higher than HDFC Large Cap but slightly lower than ICICI and Nippon.
✔ 100% rolling periods had returns above 12%.
? Conclusion: Best for long-term investors looking for growth.
✅ 5. SBI Bluechip Fund – Strong Consistency
✔ Risk-Adjusted Score (30.45) – Competitive with Mirae and Nippon.
✔ 10-Year Return: 11.32% – Strong but slightly lower than other funds.
✔ 100% rolling periods had returns above 12%.
? Conclusion: A reliable option for investors seeking long-term consistency.
? Important Disclaimer (Read Before Making Any Decisions!)
? This analysis is for educational purposes only and is NOT investment advice.
- Mutual fund investments are subject to market risks, and past performance is not a guarantee of future results.
- These rankings are based on historical data, which may not predict future market behavior.
- Always consult with a CWM® or Professional Financial Advisor before making any investment decisions.
? Final Thoughts: Which Fund Might Suit You?
? Best for Stability & Low Risk: HDFC Large Cap Fund
? Best for Highest Long-Term Growth: ICICI Prudential Bluechip Fund
? Best for Balanced Risk & Return: Nippon India Large Cap Fund
? Best for Consistency: SBI Bluechip Fund
? Did you find this analysis helpful? Share your thoughts on email: diwanfc.fp@gmail.com ?
Date Source:
| https://www.njwealth.in/mfcalculator?rpt=rolling |
File Available on:
| https://docs.google.com/spreadsheets/d/1IQ62N8Z9xqJNmIrHM9vdbWQ1HgajUhOO/edit?usp=drive_link&ouid=109845864045906198315&rtpof=true&sd=true |