Archive · 29 Oct 2025
Mirae Asset Large Cap Fund Faces Scrutiny Over Lagging Returns
Imagine a popular investment fund, the Mirae Asset Large Cap Fund, which is supposed to be a safe bet because it invests in big, well-known companies.
However, for the past few years, this fund hasn't been growing as much as other similar funds.
Even though it's considered low-risk and has a lot of money in it, its actual investment returns are lower than its competitors and its benchmark index.
This seems to be because some of the companies it invested in, especially those that follow market cycles, haven't done as well as expected.
While the fund is diversified and avoids putting all its eggs in one basket, its overall performance has been disappointing, placing it in the bottom group of similar funds.
It's a reminder that even popular funds need careful consideration for your investment goals.
Mirae Asset Large Cap Fund, a popular fund by Assets Under Management (AUM), has been underperforming its category average and benchmark index.
The fund's 3, 5, and 7-year rolling returns are lower than the category average and the Nifty 100 – TRI benchmark.
Despite a lower standard deviation indicating less risk, the fund's risk-adjusted returns, particularly the Sharpe Ratio, are not encouraging.
The underperformance is partly attributed to the cyclicality of its top stock holdings and a significant portion of the fund's assets not performing well.
The fund invests predominantly in large-cap companies (at least 80%) but has the flexibility to invest up to 20% in non-large cap companies and up to 20% in debt instruments.
- Who
- Mirae Asset Large Cap Fund
- What
- Lagging behind category average and benchmark (Nifty 100 – TRI) in 3, 5, and 7-year rolling returns, despite a low-risk profile.
- When
- As of October 23, 2025
- Where
- India
- Why
- Underperformance attributed to the cyclicality of its top holdings and a large portion of the corpus not performing well.
Fund's Strengths
Fund's Weaknesses
Risk Profile
Fund's Strengths
The fund has exposed investors to slightly lower risk (Standard Deviation of 11.13) than its category peers and has a Sortino Ratio close to the category average.
Fund's Weaknesses
Despite lower risk, the fund's Sharpe Ratio indicates uninspiring overall risk-adjusted returns, suggesting that the risk taken has not translated into adequate returns.
Investment Strategy & Portfolio
Fund's Strengths
The fund maintains a diversified portfolio (80-85 stocks) with significant allocation to largecaps and a long-term investment horizon, holding stocks with conviction.
Fund's Weaknesses
The fund's large corpus is not performing well, and the cyclicality of its top holdings, including major banks and IT stocks, has contributed to its underperformance compared to the category and benchmark.
Market Context
Fund's Strengths
Large-cap allocation makes sense in times of trade wars, geopolitical tensions, and macroeconomic uncertainty due to the stability offered by established companies.
Fund's Weaknesses
Despite the reasonable valuation of the Nifty 100, the Mirae Asset Large Cap Fund's specific stock selections have failed to capitalize on market opportunities, leading to lagging returns.
- Fund Name
- Mirae Asset Large Cap Fund
- Category
- Large Cap Fund
- Inception Date
- 04-Apr-08
- SI Return (CAGR)
- 16.36%
- Corpus
- Rs 396.15 billion
- Expense Ratio (Direct)
- 0.54%
- Exit Load
- Nil
- Fund Manager (since Jan 2019)
- Gaurav Misra
