Allocate 30-70% of your equity portfolio to large-cap funds, say experts

Large-cap funds have shown steady performance, with recent results pointing to improving earnings momentum across leading companies. Experts say valuations look appealing for long-term investors

Largecap equity funds have deliv­ered steady performance in the past year. For the year ended Nove­mber 18, 2025, they returned 9.2 per cent on average, compared to 8.6 per cent for midcap funds and 2.4 per cent for smallcap funds. 

“Largecap funds provide stability, liquidity, and consistency — three essential pillars of long-term wealth creation. These companies have proven track records, predictable earnings, and leadership positions in their respective industries. They should be permanent, core holdings in every investor’s equity portfolio,” says Sirshendu Basu, head – products, Bandhan Asset Management Company (AMC). 

Despite this resilience, investor interest remains muted. According