'Large-Cap is the new debt...': Edelweiss's Radhika Gupta on how investors are rethinking risk

Investor behavior is shifting—dramatically. According to Edelweiss Mutual Fund MD & CEO Radhika Gupta, the lines between traditional investment categories are being redrawn. “Large-cap is the new debt. Private markets are the new equity,” she shared on social media platform X, capturing a sentiment that’s been brewing over the last five years: risk appetite has moved up, and many investors have forgotten about conventional asset allocation.

Historically, large-cap equities offered a blend of growth and stability, while fixed-income assets like government bonds or high-grade debt instruments were seen as the safer, lower-return options. But as the market matured and returns across asset classes evolved, investors started placing large-cap funds in the ‘stable’ bucket. Meanwhile, the more aggressive plays, once fulfilled by equities, are increasingly coming from private markets such as venture capital, private equity, and unlisted debt.

Gupta elaborated on this evolution by pointing to the expanding universe of Nifty500-based indices. “My favourite index in this Nifty500 space is Nifty500 Multicap Momentum Quality 50,” she said. Though a mouthful, she notes, it offers the simplicity of multi-cap portfolios, adds quality across mid and small caps, and integrates momentum—a factor with a solid historical track record.

There are now five unique indices in this category:

Nifty 500 TRI

Nifty 500 Momentum 500 TRI

Nifty 500 Multicap Momentum Quality 50 TRI

Nifty 500 Quality 50 TRI

Nifty 500 Flexicap Quality 30 TRI

Edelweiss Mutual Fund has staked its claim in this space by launching the first and only index fund and ETF tracking the Nifty500. Gupta encouraged investors to explore more at EdelweissMF.com.

Largecap funds: Performance in last 5 years

Meanwhile, large-cap mutual fund performance reflects the asset class’s evolving role. Returns over the last six months have remained modest amid global market pressures. Over one year, standout funds like WhiteOak Capital Large Cap Fund managed to deliver 8%, ahead of peers.

For investors with a longer horizon, the story improves dramatically. Over three years, ICICI Prudential and DSP Large Cap Funds have posted impressive annualized returns of around 18-19%, supported by smart portfolio strategies. Stretching to five years, Nippon India Large Cap Fund delivered a stellar 25.91% CAGR, while thematic ETFs like BHARAT 22 posted even higher gains (33.05%).

Here’s a closer look at top large-cap fund performers as of August 2025:

> 1-Year Returns

WhiteOak Capital Large Cap Fund (Direct) – 8.01%

Mirae Asset Large Cap Fund – 5.00%

ICICI Prudential Large Cap Fund – 4.80%

Invesco India Large Cap Fund – 4.88%

Nippon India Large Cap Fund – 4.61%

> 3-Year Returns

ICICI Prudential Large Cap Fund – 19.00%

DSP Large Cap Fund – 18.68%

Baroda BNP Paribas Large Cap Fund – 17.44%

HDFC Large Cap Fund – 17.26%

Bandhan Large Cap Fund – 17.13%

> 5-Year Returns

Nippon India Large Cap Fund – 25.91%

BHARAT 22 ETF – 33.05%

Quant Focused Fund – 23.56%

DSP Nifty 50 Equal Weight Index Fund – 23.29%

HDFC Large Cap Fund – 22.12%

These results underscore that large-cap funds, while increasingly viewed as “the new debt,” still play a vital role in long-term wealth creation, offering stability, relatively lower volatility, and solid returns for disciplined investors.

In a world where private equity is the new growth frontier, large-cap funds remain the core pillar of a balanced portfolio, especially for those seeking a smoother ride through market cycles.