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राहुल ओबरॉय

Updated on May 22, 2026•finance-and-business

Do large-cap funds always rise long term or fall?

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2 Answers
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Ved Tiwari
Two decades of chartered accountancy — turning complex financial and business re...
Updated on May 22, 2026

Large-cap funds do not always rise in a straight line, but over the long term they generally tend to grow because they invest in strong, established companies. In Mutual Funds, large-cap funds mainly hold top companies with stable earnings, so they are less risky compared to mid-cap or small-cap funds. However, they can still fall during market crashes, economic slowdowns, or global crises. Short-term fluctuations are normal. Over many years, markets usually recover and grow, helping large-cap funds deliver steady returns. So, they are considered safer for long-term wealth creation but not completely risk-free or always rising. 

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ABOUT THE AUTHORVed Tiwari

Ved Tiwari is a Chartered Accountant (CA) and finance writer with over 20 years of professional experience in taxation, auditing, financial planning, and business advisory. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) — one of the most rigorous professional qualifications in Indian finance — and holds a Bachelor of Commerce (B.Com Honours) from Shri Ram College of Commerce (SRCC), Delhi University. His content covers personal finance, corporate taxation, GST, investment strategy, business compliance, financial planning, and India's evolving regulatory and economic landscape. His work has appeared on platforms including Moneycontrol, The Economic Times Wealth, and CA Club India, where he writes for finance professionals, business owners, and informed readers who need content built on two decades of real-world financial practice — not surface-level commentary. Over 20 years, Ved has advised hundreds of businesses and individual clients on taxation, audit compliance, and financial restructuring. He has handled complex multi-crore audits, represented clients before tax authorities, and guided startups and established firms through India's regulatory environment. He has published 400+ articles on finance and business, spoken at ICAI seminars and industry finance conferences, and is a practising member of the ICAI Western Region chapter. Across all his writing, every figure is verified, every regulatory reference is current, and every recommendation reflects the same professional standard he applies to his clients — because in finance, accuracy is not optional.

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Prreeti Radhika Taneja
Updated on May 22, 2026

This is quite a common misconception among new investors. Many of them believe that large-cap mutual funds can never result in alossinlong-term. Historically, to an extent, this claim seems quite legit. However, when put theoretically, that’s not how financial assets work.

It has been told time and again, in the financial market, no investment isfoolproof. Even the safest bet has risks involved. So to say large-cap mutual funds are safe for the long-term would be quite unjust. Because the past track record doesn’t guarantee a similar result in the future. An awful lot of factors come into play when deciding the boom and bust of the market, including, in sensitive countries like India, the political scenario, inflation,andfiscal policies.

So if you’re investing in this asset for the long-term, don’t simply assume that your investment will bring you big return. There’s anequalchance of its price falling below the market price of years before. So be selective in your choices and stay prepared for the loss.

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