Investing in mutual funds is an excellent way for Non-Resident Indians (NRIs) to grow their wealth in India. Among the various categories, large-cap mutual funds stand out for their ability to provide stability, consistent returns, and lower risk compared to mid-cap and small-cap funds. In 2024, large-cap mutual funds are expected to continue being a reliable choice for investors seeking exposure to blue-chip companies with proven track records.
In this article, we’ll explore the top large-cap mutual funds for NRIs in 2024, along with the features, benefits, and reasons why they could be a good addition to your portfolio.
What Are Large-Cap Mutual Funds?
Large-cap mutual funds invest predominantly in large-cap companies—the top 100 companies in terms of market capitalization. These companies are industry leaders with established operations, strong fundamentals, and the ability to weather market volatility. Large-cap funds are considered less risky than mid-cap or small-cap funds, making them a preferred choice for long-term investors.
Why Should NRIs Consider Large-Cap Mutual Funds?
Here’s why large-cap mutual funds are an excellent investment option for NRIs:
- Stability and Consistency: Large-cap companies are more resilient during market fluctuations, ensuring stable returns over time.
- Global Exposure: Many large-cap companies in India operate internationally, providing indirect exposure to global markets.
- Professional Management: The funds are managed by experienced professionals who make investment decisions based on extensive research.
- Liquidity: Large-cap funds are highly liquid, allowing NRIs to redeem their investments quickly if needed.
- Regulated Framework: NRIs investing in Indian mutual funds benefit from a structured regulatory environment that ensures transparency.
How to Choose the Best Large-Cap Mutual Fund
Before investing, consider the following factors to select the best large-cap mutual fund:
- Fund Performance: Check the fund’s historical performance over 5-10 years to assess its consistency.
- Expense Ratio: Lower expense ratios ensure higher net returns.
- Fund Manager’s Expertise: The fund manager’s experience and strategy can significantly influence returns.
- AUM (Assets Under Management): Funds with a higher AUM generally indicate investor trust and stability.
- Exit Load and Taxation: Consider the fund’s exit load and tax implications, especially as an NRI.
Top Large-Cap Mutual Funds for NRIs in 2024
Here are some of the top-performing large-cap mutual funds along with their returns that you can consider investing in:
| Fund Name | 1 Year | 3 Years | 5 Years | 10 Years |
| ICICI Prudential Bluechip Fund – Growth | 25.59 | 17.95 | 19.76 | 14.28 |
| Mirae Asset Large Cap Fund – Reg – Growth | 21.16 | 12.07 | 15.85 | 13.81 |
| Nippon India Large Cap Fund – Reg – Growth | 27.09 | 20.95 | 20.78 | 14.55 |
| Canara Robeco Bluechip Equity Fund – Growth | 26.06 | 14.27 | 18.36 | 14.00 |
| Kotak Bluechip Fund – Reg – Growth | 24.66 | 14.36 | 17.84 | 13.40 |
| Baroda BNP Paribas Large Cap Fund – Growth | 29.05 | 16.69 | 18.44 | 13.62 |
| Invesco India Largecap Fund – Growth | 31.00 | 15.45 | 18.77 | 13.68 |
Benefits of Investing in Large-Cap Funds
- Lower Risk: Large-cap funds are relatively less volatile, making them ideal for NRIs looking for secure investment options.
- Portfolio Diversification: Investing in these funds offers exposure to a broad range of blue-chip companies across industries.
- Ease of Investment: NRIs can invest in large-cap funds through NRE or NRO accounts, making the process seamless.
- Tax Benefits: NRIs can enjoy tax-efficient returns under the Double Taxation Avoidance Agreement (DTAA) in certain countries.
How Can NRIs Invest in Large-Cap Mutual Funds?
- Choose a Platform: NRIs can invest in mutual funds through banks, online platforms, or financial advisors.
- KYC Compliance: Complete the NRI KYC process, including submitting documents like passport, visa, PAN card, and proof of overseas address.
- Use NRI Accounts: Invest using an NRE or NRO account, depending on the repatriation requirements.
- Mode of Investment: Select between SIP (Systematic Investment Plan) or lump sum investment based on your financial goals.
- Monitor Your Investments: Regularly review the fund’s performance and rebalance your portfolio if necessary.
Why 2024 Is a Great Year for Large-Cap Funds?
The Indian economy is poised for growth in 2024, driven by robust infrastructure development, increased foreign investments, and favorable government policies. Large-cap companies are likely to benefit the most from these developments, making large-cap funds a smart choice for NRIs looking to capitalize on India’s growth story.
Conclusion
Large-cap mutual funds are a reliable and effective way for NRIs to invest in India. These funds combine stability with the potential for long-term wealth creation, making them suitable for risk-averse as well as growth-oriented investors. By choosing the right large-cap mutual funds and staying invested, NRIs can benefit from the growth of India’s top companies while diversifying their global portfolio.
As an NRI, it’s important to start early and stay committed to your financial goals. With the right guidance and disciplined investing, large-cap mutual funds can help you secure a prosperous future. Download the SBNRI App and start investing in the best large-cap mutual funds!
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
Frequently Asked Questions
Are large-cap funds suitable for long-term wealth creation?
Yes, large-cap funds are ideal for long-term goals as they provide steady growth over time while withstanding market volatility.
Can NRIs invest in large-cap mutual funds through NRE and NRO accounts?
Yes, NRIs can use both NRE (repatriable) and NRO (non-repatriable) accounts to invest in large-cap mutual funds.
How do I assess the performance of a large-cap mutual fund before investing?
Evaluate the fund’s historical performance, expense ratio, fund manager’s expertise, and how consistently it has outperformed its benchmark over a 5-10 year period.
