After 18 months of market volatility, conditions were finally beginning to stabilise in February this year. This period also saw the presentation of a robust Budget and progress on the US trade deal, following agreements with the European Union and the UK.
However, with a war erupting again in West Asia last week, geopolitical concerns have returned to the fore, raising the risk of trade disruptions and oil price spikes.
All frontline and broader equity market indices had already come under pressure weeks before the war, amid fears over AI-led disruption to businesses and jobs, particularly in the software segment, and its likely spillover effect on domestic consumption.
During such times, a relatively safer approach for long-term investors would be to buy into large-cap funds directing them towards specific goals.
Bandhan Large Cap fund can be good addition to investors with a seven-year or higher perspective via the SIP route as a portfolio diversifier.
It has been an above-average performer in the category over the past 6-7 years. The scheme has a track record of nearly 20 years.
Above-average show
Though Bandhan Large Cap was a moderate performer in the period leading just prior to Covid-19, its performance has been strong thereafter.
Over one, three, five and seven-year timeframes, the fund has outperformed the Nifty 100 TRI by 1.5-3.4 percentage points.
The fund’s five-year point-to-point returns are healthy at 14.2 per cent, which compares favourably with peers in the category.
When five-year rolling returns are considered from January 2018 to February 2026, the fund has outperformed the Nifty 100 TRI over 76 per cent of the time. The mean return for the fund is 16.8 per cent, while for the Nifty 100 TRI, it is 16.1 per cent.
Over this rolling period and timeframe, Bandhan Large Cap has delivered more than 12 per cent for over 82 per cent of the time and in excess of 15 per cent for over 68 per cent of the time.
When returns on monthly SIPs (XIRR) over the past 10 years are considered, the fund has delivered 14.7 per cent. A similar SIP in the Nifty 100 TRI would have returned 13.6 per cent.
The fund has an upside capture ratio of nearly 107.7, indicating that its NAV rises a bit more than the benchmark during rallies. It has a downside capture ratio of 100.6, indicating that the scheme’s NAV falls almost in line with the benchmark during corrections. A score of 100 indicates that a fund performs exactly in line with its benchmark. This inference is based on data for the March 2021 to March 2026 period.
All return figures and the ratios pertain to the direct plan of the fund.
Steady portfolio mix
In keeping with its mandate, Bandhan Large Cap fund predominantly holds only large-cap stocks, usually clocking 80-85 per cent of the portfolio. When broader markets are attractive and vibrant, the fund takes 12-15 per cent exposure in mid- and small-caps.
Bandhan Large Cap Fund holds a little over 60 stocks, making the portfolio diversified without being overly diffused. Except for the top four or five holdings, no individual stock accounts for more than 4 per cent of the portfolio.
In terms of sector holdings, banks have always figured on top of the pile and have accounted for over a quarter of the overall portfolio. Given the segment’s relative outperformance since the market peak of September 2024, the fund’s own returns have been helped by higher exposure to the sector as well as to the financial services space.
Interestingly, IT and software segment has been among the top holdings of the fund across timelines. However, the fund has been decreasing exposure to the sector over the past one year and it is now in single digits as AI-led disruption knocked out considerable value from frontline stocks.
Petroleum products (refiners) have also been a prominent part of the fund’s portfolio.
Higher exposure to pharmaceutical, biotechnology and automobile companies has also contributed to Bandhan Large Cap Fund’s strong performance over the past couple of years.
The FMCG segment does not have much prominence in the fund, nor does retailing. These segments have been heavy underperformers in recent years as business (alternative channels) and demand disruptions have hurt their prospects.
The fund’s picks in most sectors are restricted to the top two or three stocks.
Overall, Bandhan Large Cap is a steady rather than spectacular performer that can deliver above-average returns over 7-10-year timeframes.
Published on March 7, 2026