Bandhan Nifty 100 Index Fund vs Invesco India Largecap Fund

Invesco India Largecap Fund is an actively managed large cap fund scheme: a fund manager picks and weights the holdings, and charges a higher expense ratio for doing so. Bandhan Nifty 100 Index Fund does the opposite — it simply tracks NIFTY 100 and charges very little. This page settles the question that actually matters before you invest in either: over the periods we can measure, did the active fund earn its fee?

Both sides are compared on their official AMFI NAV history (direct plan, growth option) — the same daily data the fund houses publish. Using the index fund rather than the raw NIFTY 100 level is deliberate: a tracking fund's NAV already includes its expense ratio and tracking error, so this is the return an investor could genuinely have captured, not a theoretical index number nobody can buy.

Over the 3-year period Invesco India Largecap Fund beat its benchmark tracker: +16.20% annualised against +10.45% for Bandhan Nifty 100 Index Fund — an outperformance of about 5.75 percentage points a year. That is the active manager genuinely adding value over this window, after the fund's own costs.

In rupee terms, ₹1,00,000 invested 3 years ago would have become about ₹1,56,895 in Invesco India Largecap Fund and ₹1,34,730 in Bandhan Nifty 100 Index Fund — a difference of roughly ₹22,165 on a ₹1,00,000 investment. Scale that to the size of your actual SIP or lumpsum to see what the choice is worth to you.

The outperformance is consistent rather than a one-off: Invesco India Largecap Fund is ahead on every horizon we can measure (3-year: +16.20% vs +10.45% · 1-year: +6.53% vs +0.57%). Consistency across multiple periods is a stronger signal than a single good year, though it still does not guarantee the pattern continues.

The active fund has been the bumpier ride: annualised volatility of 14.9% against 13.8% for the tracker. On worst falls, the deepest drawdown in our stored history is −18.2% for Invesco India Largecap Fund against −17.3% for Bandhan Nifty 100 Index Fund. So the extra return came with extra turbulence — worth knowing if you are likely to sell during a sharp fall.

One factor sits outside the returns above: cost. An index fund tracking NIFTY 100 typically charges a fraction of what an actively managed large cap fund scheme does, and that difference is deducted every year whether the manager performs or not. Over a long holding period a persistent fee gap compounds into a meaningful sum, which is why an active fund needs to beat its benchmark by more than its extra cost simply to break even with the tracker.

Which to choose comes down to what you believe about the next decade rather than the last one. Index funds guarantee you the benchmark's return minus a small fee; active funds offer the possibility of more, with the risk of less and a higher certain cost. Use the growth chart above to see how each behaved through actual market cycles, and consider a SEBI-registered adviser before switching. This comparison is informational and is not investment advice.