Series 135 – Return dispersion within large caps & why active fund management matters

Return dispersion within large caps is far wider than most investors assume, and this is where active selection creates meaningful alpha. Looking at the past 5 years, the top quartile of large caps delivered high-teens to 20 percent CAGR, while the bottom quartile generated low single-digit or even negative CAGR.

This creates a performance gap of roughly 30–40 percentage points between winners and laggards. In other words, even inside the large-cap universe, choosing the right names matters as much as small-cap stock picking.

The opportunity set is real, just with far lower downside risk and liquidity.

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As always, we keep re-emphasising our SIP mode of investment. You can connect with your relationship manager to know more about our SIP Program.

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