Summary:
Large-cap equity funds invest at least 80% of their net assets in equity and equity-related instruments of large-cap companies.
In volatile market phases, the NAV of such schemes may fall less compared to mid- or small-cap funds.
High liquidity in large-cap stocks may allow fund managers to avoid selling at unfavourable prices during volatile phases.
While large-cap funds may offer better stability, they are not risk-free, so investments should be made as per your risk appetite.
On April 1, 2026, India VIX opened at 27.8875, compared to just 9.4750 on January 1, 2026. That’s an increase of nearly 194% in a single quarter. It signals that the Indian market has become “highly volatile” and investors are anticipating major price swings in the coming times (Source: NSE Historical Data - India VIX).
Interestingly, this rise in volatility has not discouraged investors from putting money into relatively stable segments like large-cap funds. As per AMFI Monthly Note (for March 2026), large-cap mutual funds had Assets Under Management (AUM) of ₹3,66,045 crore.
Investor interest also improved during this period, with “monthly inflows” into large-cap equity funds increasing from ₹2,112 crore in February 2026 to ₹2,998 crore in March 2026 (a monthly surge of 42%).
But why such a preference? Read this article to understand how investing in large-cap funds during volatile market conditions may work in your favour. Lastly, know about the Tata Large Cap Fund and its primary features.
