1. Introduction
Investing in large‑cap mutual funds is often the first step for many retail investors looking to build a stable equity portfolio. Large-cap funds, by design, invest in well-established, financially strong companies with high market capitalization. These companies tend to be less volatile than mid- or small-cap firms, offering a balance of growth and relative safety.
Among the many large-cap funds in India, ICICI Prudential Large Cap Fund (recently renamed/adjusted scheme name as per its factsheet) stands out as a popular, high-AUM fund with a long track record. In this post, we’ll go deep into what makes this fund tick — its strategy, performance, risk profile, and whether it’s a good fit for you in 2025 and beyond.
2. Fund Background & History
- AMC / Fund House: The fund is managed by ICICI Prudential Mutual Fund, one of the leading asset management companies (AMCs) in India.
- Inception Date: According to the AMC’s factsheet, the scheme was allotted on 23 May 2008. ICICI Prudential Digital Factsheet+2ICICI Direct+2
- Name Change: As per the latest factsheet, the name was changed to ICICI Prudential Large Cap Fund effective June 16, 2025. ICICI Prudential Digital Factsheet
- Fund Managers:
- Anish Tawakley has been managing the fund since September 2018. ICICI Prudential Digital Factsheet
- Vaibhav Dusad is also listed as a co‑manager since January 2021. ICICI Prudential Digital Factsheet
- Exit Load: The fund charges a 1% exit load for redemptions made within 1 year of investment. ICICI Prudential Digital Factsheet
3. Fund Objective & Strategy in ICICI Prudential Large Cap
- The fund’s primary objective is to generate long-term capital appreciation and potentially deliver income distribution by investing predominantly in equity and equity-related securities of large-cap companies. ICICI Direct+2ICICI Prudential Digital Factsheet+2
- The scheme benchmark was changed from Nifty 50 TRI to Nifty 100 TRI effective May 28, 2018. ICICI Prudential Digital Factsheet
- The investment philosophy is centered around quality large-cap companies — those with strong business models, good cash flows, and sustainable competitive advantage.
- The fund is not purely “index hugging”; while it aligns with large-cap equity, the management team performs active stock selection to balance growth and risk.
- According to the factsheet, the indicative investment horizon for this fund is 5 years and above, indicating that it’s not ideally suited for very short-term equity bets. ICICI Prudential Large Cap Digital Factsheet
4. Fund Management Team in ICICI Prudential Large Cap
- Anish Tawakley: He is the lead fund manager. With experience managing this fund since 2018, he brings a long-term perspective. ICICI Prudential Digital Factsheet
- Vaibhav Dusad: Co-manages the fund since 2021, with 13+ years of experience. ICICI Prudential Digital Factsheet
- Their combined expertise helps in navigating market cycles, identifying large-cap companies with sustainable growth, and handling macro risk.
5. Key Fund Metrics & Data in ICICI Prudential Large Cap
Here are some of the critical numbers and metrics for this fund (as per the latest publicly available data):
| Metric | Value / Insight |
|---|---|
| AUM (Assets Under Management) | ~ ₹ 71,839.85 crore (monthly AAUM as of 31 Aug 2025) ICICI Prudential Digital Factsheet Economic Times / ICICI data also mentions AUM around ₹ 73,034.52 Cr. The Economic Times |
| Inception Date | 23 May 2008 ICICI Prudential Digital Factsheet+1 |
| Expense Ratio | – Regular Plan: ~ 1.41% – 1.42% (as per ET / ICICI Prudential Large Cap) The Economic Times+2Moneycontrol+2 – Direct Plan: 0.86% p.a. according to the factsheet. ICICI Prudential Digital Factsheet |
| Minimum Investment Amount | Rs 100 for fresh subscription / SIP / lumpsum. ICICI Prudential Digital Factsheet |
| Exit Load | 1% if redeemed within 1 year. ICICI Prudential Digital Factsheet |
| Risk Level | According to ICICI Direct, “Very High.” ICICI Direct |
| Benchmark | Nifty 100 TRI (Total Return Index) since May 2018. ICICI Prudential Digital Factsheet |
| Current NAV (Growth, Regular / Direct): |
- For Regular Growth: ~ ₹113.02 (ET data) The Economic Times
- For Direct Growth: ~ ₹125.70 as of 28 Oct 2025 (Mint) mint |
| Fund Manager Tenure / Experience: Anish – since Sept 2018, Vaibhav – since Jan 2021. ICICI Prudential Digital Factsheet |
6. Portfolio Composition in ICICI Prudential Large Cap
Having a strong, well-diversified portfolio is key for a large-cap fund. Here is a breakdown based on the most recent data:
- Equity Exposure: The fund has a very high allocation to domestic equities. According to Moneycontrol, ~90.34% of its assets are in equity. Moneycontrol
- Market Cap Exposure: Large-cap stocks dominate; some mid-cap exposure (~3.33%) is also present. Moneycontrol
- Debt / Cash / Others: According to Moneycontrol, ~0.75% is in debt instruments, including government securities. Moneycontrol
- Top Sector Exposures / Key Themes (according to Mint):
- Financials / Banks: Very significant exposure — including HDFC Bank, ICICI Bank. mint+1
- Energy / Oil & Gas: Through holdings like Reliance Industries. mint
- Infrastructure / Construction: Through companies like Larsen & Toubro. mint+1
- Telecom / Others: Some exposure as well — e.g., Bharti Airtel in large-cap portfolio. mint
- Top Holdings (as per Mint, recent):
This kind of diversification across strong, well-known large-cap names reflects the fund’s conservative-growth style — it seeks to benefit from stable growth in big companies rather than aggressive bets.
7. Performance Analysis
To understand whether ICICI Prudential Large Cap Fund is a good choice, we need to look closely at how it has performed historically and in recent times.
RETURNS (NAV as on 20th November, 2025)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Nov-25 | 10088.70 | 0.89% | – | 0.84% | 16/35 |
| 1 Month | 20-Oct-25 | 10186.20 | 1.86% | – | 0.98% | 1/35 |
| 3 Month | 20-Aug-25 | 10407.50 | 4.08% | – | 3.35% | 6/35 |
| 6 Month | 20-May-25 | 10719.20 | 7.19% | – | 6.11% | 10/35 |
| YTD | 01-Jan-25 | 11115.90 | 11.16% | – | 7.82% | 1/34 |
| 1 Year | 19-Nov-24 | 11233.30 | 12.33% | 12.30% | 9.23% | 2/34 |
| 2 Year | 20-Nov-23 | 14378.70 | 43.79% | 19.88% | 16.77% | 2/32 |
| 3 Year | 18-Nov-22 | 16599.90 | 66.00% | 18.35% | 14.82% | 2/31 |
| 5 Year | 20-Nov-20 | 24957.00 | 149.57% | 20.06% | 16.38% | 2/28 |
| 10 Year | 20-Nov-15 | 40712.80 | 307.13% | 15.06% | 13.01% | 1/25 |
| Since Inception | 23-May-08 | 115950.00 | 1059.50% | 15.02% | 13.59% | 13/33 |
7.1 Trailing / Historical Returns
- According to Economic Times, the fund’s regular plan (growth) has trailing returns: ~2.58% for 1 year, ~19.0% for 3 years, and ~21.22% for 5 years. The Economic Times
- The inception return (since 2008) for the regular growth plan per ET is ~14.89%. The Economic Times
- According to Mint, the direct growth plan (as of 28 Oct 2025) has a 5-year CAGR of 22.77%. mint
- For the direct plan, the expense ratio is significantly lower (0.86%), which boosts net returns for long-term investors. mint
7.2 Risk-Adjusted Returns
- Sharpe Ratio / Standard Deviation: Based on Mint data, the fund has a Sharpe ratio of ~0.95 and standard deviation of ~11.20%. mint
- Beta: As of the recent data, the fund’s beta is ~0.95, showing that it is slightly less volatile than the benchmark market index. mint
- Tracking Error: According to Mint, tracking error is ~3.44%. mint
7.3 Performance Strengths & Weaknesses
Strengths:
- Over a 5-year horizon, both direct and regular plans show strong CAGR, indicating that the fund has delivered well in the medium to long term.
- Lower expense ratio for direct plan helps long-term investors.
- Good risk-adjusted returns: high Sharpe ratio suggests that the fund compensates well for risk.
Weaknesses / Challenges:
- The 1-year return (in some cases) has been muted, indicating possible volatility or underperformance in short-term.
- Since it’s a large-cap fund, the upside may be limited compared to mid-cap or small-cap funds in a high-growth phase.
- Tracking error suggests active deviation from the benchmark, which may be a risk in certain market scenarios.
8. Risk Metrics & Volatility
Understanding risk is essential. While large-cap funds are generally less risky than mid or small cap, they are not risk-free.
- Standard Deviation (~11.20%): This is moderate volatility for a large-cap fund, as per Mint data. mint
- Beta (~0.95): Slightly less volatile than the benchmark, which helps reduce downside risk in volatile markets. mint
- Sharpe Ratio (~0.95): Indicates attractive risk-adjusted returns — the fund has historically given good returns for the risk taken. mint
- Tracking Error (~3.44%): Reflects the degree to which the fund’s returns deviate from its benchmark (Nifty 100 TRI or equivalent). mint
Other Risk Considerations:
- Market Risk: Equity risk is always present — large-cap companies are not immune to market downturns.
- Concentration Risk: High exposure to a few large companies (like HDFC Bank, ICICI Bank, etc.) means potential risk if those companies underperform.
- Exit Load Risk: 1% exit load for redemption within 1 year — this penalizes short-term investors. ICICI Prudential Digital Factsheet
- Management Risk: Active management gives potential for outperformance, but also risk if stock picks go wrong or if large-cap valuations become expensive.
9. Suitability: Who Should Invest in This Fund?
Ideal Investor Profile:
- Long-Term Investors (5+ years): The fund is best suited for investors who can stay invested for several years, given its recommended horizon and historical performance.
- Core Large-Cap Exposure: If you are building a portfolio, this fund can act as a “core large-cap” component — stable, blue-chip-driven.
- Moderately Risk-Averse Investors: While there is risk (since it’s equity), compared to mid- or small-cap funds, large-cap funds like this are relatively safer.
- SIP Investors: SIP (Systematic Investment Plan) is highly suitable because rupee-cost averaging helps mitigate volatility over time.
- Lump-Sum Investors: If you have a lump sum that you want to invest in a stable large-cap equity fund, this is a decent option, especially with a 5+ year view.
Maybe Not the Best Fit if:
- Very Short-Term Horizon (<3 years): Given the equity risk and exit load, this may not be ideal for quick in-and-out.
- Aggressive Growth Seekers: If you’re targeting extremely high returns and are okay with high volatility, mid/small-cap funds might suit better.
- Low Risk Tolerance Investors: For highly conservative investors (worried even about large-cap equity volatility), debt funds or hybrid funds might be safer.
10. Pros & Cons
Pros:
- Strong AUM: With over ₹ 70,000+ crore AUM, it’s a trusted and large fund. ICICI Prudential Digital Factsheet+1
- Experienced Management: Managed by seasoned fund managers with a long-term view. ICICI Prudential Digital Factsheet
- Active Yet Stable: While focused on large-cap, the fund uses active stock selection rather than just mimicking an index.
- Good Risk‑Adjusted Returns: High Sharpe ratio and moderate volatility make it appealing.
- Affordable Entry: Minimum investment is very low (₹ 100), making it accessible. ICICI Prudential Digital Factsheet
- Reasonable Exit Load: 1% for redemptions within 1 year — encourages long-term investing.
- Direct Plan Advantage: Very low expense ratio (0.86%) in the direct plan, making it cost-effective for long-term investors. ICICI Prudential Digital Factsheet
Cons:
- Expense Ratio (Regular Plan): For regular investors, the expense ratio is relatively high (~1.41–1.42%) which can eat into returns. The Economic Times
- Limited Upside vs Small / Mid Cap: Large-cap companies might not grow as fast as smaller companies in a bull run.
- Concentration Risk: Heavy allocation in a few top large-cap names could pose risk.
- Exit Load: 1% if redeemed within 1 year, which might discourage short-term redemption.
- Benchmark Risk: While benchmark is Nifty 100 TRI, if the large-cap space underperforms other parts of the market, fund returns may lag.
11. Comparison with Peers & Benchmark
11.1 Benchmark Comparison
- The fund’s benchmark is Nifty 100 TRI (after May 2018). ICICI Prudential Digital Factsheet
- By comparing with such a broad index, the fund aims to balance between large-cap growth and active management.
- Its tracking error (~3.44%) suggests meaningful deviation from the benchmark, indicating active bets rather than passive replication. mint
11.2 Comparison with Peer Funds
Some comparable large-cap funds / peers:
- HDFC Large Cap Fund
- Nippon India Large Cap Fund – Growth
- SBI Large Cap Fund
- Mirae Asset Large Cap Fund
Compared to these:
- Expense Ratio: The regular plan’s ~1.41–1.42% is comparatively on the higher side; some peers may be leaner.
- Performance: Over 5 years, its CAGR (especially direct plan) is very competitive.
- Risk: It has a moderate beta (~0.95), which is good compared to very “active large-cap” or flex / multi-cap funds, making it more stable.
12. Investment Strategy (SIP, Lump Sum, Horizon)
SIP Strategy:
- Recommended: Very effective. SIP allows investors to average out the cost over time, especially in volatile markets.
- Minimum SIP: As per the factsheet, you can start with just ₹ 100. ICICI Prudential Digital Factsheet
- Over 5+ years, this fund via SIP can potentially give strong returns while minimizing risk.
Lump Sum Strategy:
- Suitable for long-term investors: If you have a lump sum and believe in large-cap stability, investing with a long view (5+ years) is ideal.
- Risks: Lump-sum means timing risk; entering just before a market downturn could lead to short-term underperformance.
Horizon:
- Short Term (< 3 years): Not ideal, because equity risk and exit load can work against you.
- Mid to Long Term (5+ years): Recommended. The fund is structured to deliver over this period.
- Very Long Term (10+ years): Perfect for this fund, given large-cap companies’ ability to compound and potentially deliver stable growth.
13. Tax Implications
- Capital Gains Tax (Equity Funds):
- If units are redeemed within 1 year → Short-Term Capital Gains (STCG) tax at 15% (for equity).
- If redeemed after 1 year → Long-Term Capital Gains (LTCG) tax: 10% on gains above ₹ 1 lakh (in a financial year), without indexation (as per current Indian tax laws).
- Dividend Option (IDCW): If you invest in the IDCW (income distribution) version, dividends (if declared) will be taxed in investor’s hands as per their income slab.
- SIP Tax Efficiency: When investing via SIP, each lot has its own holding period; for tax optimization, you can plan redemptions based on which lots are >1 year old to minimize STCG.
14. Real‑World Scenarios / Use Cases
Here’s how different types of investors can use this fund effectively:
- Young Professional (25‑35 years):
- Goal: Build a core equity portfolio for retirement / long-term growth.
- Strategy: Start a monthly SIP of ₹5,000 → stay invested for 10+ years.
- Why: They get large-cap stability + compounding, with moderate risk.
- Mid-Career Investor (35‑50 years):
- Goal: Wealth accumulation + retirement corpus.
- Strategy: Use a mix of lump sum + SIP → allocate a part (say 40-50%) of equity portfolio in this fund.
- Why: Acts as stable foundation; cushions volatility from riskier funds.
- Near-Retirement (50+ years):
- Goal: Preserve capital + modest growth.
- Strategy: Larger portion in large-cap funds + some debt → use this fund for equity exposure.
- Why: Less risk than mid / small-caps, and reasonably good returns.
- High-Investment (Lump Sum) Investor:
- Goal: Deploy a large corpus into equity but don’t want to chase high risk.
- Strategy: Invest lumpsum + use STP (Systematic Transfer Plan) into this fund from debt.
- Why: Systematic deployment helps manage market timing risk, and large-cap gives stability.
15. Risk Factors & Considerations
When investing in ICICI Prudential Large Cap Fund, here are key risks / considerations to keep in mind:
- Market Downturns: During sharp equity corrections, even large-cap stocks can fall significantly.
- Valuation Risk: Large-cap stocks may be overvalued sometimes; active managers may struggle to find undervalued large companies when valuations are rich.
- Concentration Risk: Significant exposure to top 5–10 large-cap names means if one or two companies underperform, it can affect NAV.
- Exit Load Risk: 1% on redemptions within 1 year may discourage quick exits or tactical short-term investing.
- Fund Manager Risk: Future performance depends on the decision-making ability of the fund management team.
- Opportunity Cost: By choosing a safer large-cap fund, you might miss out on the higher (but riskier) returns from mid- or small-cap funds in bull markets.
16. Behavioural Insights for Investors
- Stay Invested: Large-cap funds are not for timing the market, but for staying in the market. If invested for 5+ years, short-term fluctuations matter less.
- Use SIPs Wisely: SIPs help reduce emotional investing. They smooth out the volatility.
- Avoid Chasing Performance: Don’t switch funds too often; chase your long-term asset allocation plan.
- Periodic Review: Check the fund’s performance and portfolio every 6–12 months. Rebalance only if necessary.
- Be Patient: Large-cap fund returns may not always be “explosive” — but they are more stable; patience is essential.
17. How to Invest — Step by Step
- Open an MF Account / Use Broker / AMC Website: Use a platform like your bank app, or ICICI Prudential Large Cap website.
- Choose the Plan: Decide between Direct and Regular. Direct is cheaper but requires more effort.
- Select the Option: Growth (for long-term wealth) or IDCW (if you want dividends).
- Decide Investment Mode: SIP or Lump Sum. For SIP, set monthly amount.
- Start with Minimum Investment: ₹ 100 is the minimum — very low barrier to entry. ICICI Prudential Digital Factsheet
- Monitor Account: Track NAV, performance, and review periodically.
- Exit / Redemption Strategy: Plan redemptions after 1 year to avoid exit load.
18. Monitoring & When to Review
- Quarterly / Semi-Annual Check: Look at quarterly factsheet / portfolio update from ICICI Prudential Large Cap.
- Performance vs Benchmark: Compare the fund’s returns vs Nifty 100 TRI to see how well the fund is doing.
- Top Holdings Changes: Watch if the fund’s top holdings change drastically — major shifts may indicate risk or strategy change.
- Cost Impact: Keep an eye on the expense ratio, especially if you’re in the regular plan.
- Rebalance: If your asset allocation changes (due to market moves), consider rebalancing.
19. Conclusion
ICICI Prudential Large Cap Fund is a very strong large-cap mutual fund — combining scale, experienced management, and active stock-picking. For investors seeking long-term growth with relatively lower risk compared to mid or small cap funds, this fund can serve as a core equity holding.
Its strengths lie in its large AUM, access to blue-chip companies, and a management team focused on sustainable growth. The direct plan makes it cost-effective, and its risk-adjusted returns are appealing. On the flip side, the high expense ratio in regular plans and exit load for short-term exits are key drawbacks.
20. References / Sources
- ICICI Prudential Large Cap MF Factsheet (Aug 2025) ICICI Prudential Digital Factsheet
- Economic Times – ICICI Prudential Large Cap Fund factsheet / NAV data The Economic Times+1
- Mint – Performance data, AUM, risk metrics mint
- ICICI Prudential Large Cap Direct – Scheme details (exit load, min investment) ICICI Prudential Large Cap
- Moneycontrol – Portfolio composition, equity exposure
Disclaimer
The information provided on this blog is for educational and informational purposes only and should not be considered as financial advice, investment recommendation, or an offer to buy or sell any financial products. Investments in mutual funds, including ICICI Prudential Large Cap Fund, are subject to market risks, and past performance is not indicative of future results. Readers are advised to consult with a qualified financial advisor before making any investment decisions. The blog author and website are not responsible for any investment losses incurred based on the information provided here
