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For a long time, large-cap mutual funds were the first choice for investors looking for steady long-term growth. However, with markets becoming more volatile, many investors are now considering hybrid multi-asset funds that aim to balance returns with lower risk.
This comparison looks at Nippon India Large Cap Fund and Quant Multi Asset Allocation Fund, focusing on 5-year returns to judge performance across different market phases.
Large-cap funds invest mainly in well-established companies with large market capitalisation. Their returns closely follow market movements, meaning strong gains in rallies but sharper falls during corrections.
Hybrid multi-asset funds invest across equities, debt, and sometimes commodities. This diversification helps reduce volatility while still allowing participation in equity-led growth.
Quant Multi Asset follows a diversified approach, with around 39.6% invested in equities and the rest spread across other asset classes. This lower equity exposure helps manage market swings.
Despite lower equity exposure, the fund has delivered strong long-term returns. Its Sharpe ratio of 1.34 shows better risk-adjusted performance.
Major investments include State Bank of India, Premier Energies, Jio Financial Services, HDFC Life, and ICICI Bank.
The scheme is managed by Ankit Pande, Sanjeev Sharma, and Sandeep Tandon, with a high portfolio turnover reflecting active management.
Nippon India Large Cap is a pure equity fund, with nearly 99.6% invested in stocks, mainly large and established companies.
The fund has delivered steady returns but with higher dependence on overall market performance. Its Sharpe ratio of 0.72 indicates lower risk-adjusted returns compared to the hybrid fund.
Key holdings include HDFC Bank, Reliance Industries, ICICI Bank, Axis Bank, and SBI.
The scheme is managed by Sailesh Raj Bhan and Bhavik Dave, with a relatively stable portfolio turnover.
Large-cap funds suit investors with a long-term horizon who can stay invested during market ups and downs without reacting to short-term volatility.
Hybrid funds are better for investors who want equity exposure with lower volatility, especially those investing through SIPs or those uncomfortable with sharp market corrections.
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The comparison shows that strong returns are not limited to pure equity funds. While Nippon Large Cap offers market-linked stability, Quant Multi Asset has delivered higher returns with better risk management through diversification.
Both funds serve different investor needs. Large-cap funds work well for disciplined, long-term equity investors, while hybrid multi-asset funds suit those seeking smoother returns with diversification. Choosing between them should depend on investment goals, risk tolerance, time horizon, and tax considerations, not just past returns.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Dec 22, 2025, 10:33 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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