A comparison between the UTI Nifty 50 Index Fund, India’s largest index fund with an AUM of ₹27,827 crore, and the ICICI Prudential Large Cap Fund, the largest large-cap fund with an AUM of ₹76,297 crore, offers a useful illustration of how these two approaches differ.
While both funds primarily invest in large-cap companies, their investment styles differ fundamentally. UTI Nifty 50 Index Fund passively tracks the Nifty 50 Index, whereas the ICICI Prudential Large Cap Fund is actively managed to outperform its benchmark through selective picking.
UTI Nifty 50 Index Fund vs ICICI Prudential Large Cap Fund: Past performance
| Period | UTI Nifty 50 Index Fund | Final Amount on ₹1 Lakh | ICICI Prudential Large Cap Fund | Final Amount on ₹1 Lakh |
| 1 Year | -3.04% | ₹96,960 | -0.77% | ₹99,230 |
| 3 Years | 9.80% | ₹1,32,375 | 14.74% | ₹1,51,058 |
| 5 Years | 9.79% | ₹1,59,520 | 14.85% | ₹1,99,827 |
| 10 Years | 12.55% | ₹3,26,178 | 14.76% | ₹3,96,192 |
*Data as on June 24, 2026, Direct Plans, Source: Value Research
Historical performance data shows that the actively managed fund has delivered better returns over the years.
A ₹1 lakh invested in the UTI Nifty 50 Index Fund one year ago would have fallen to around ₹96,960, compared with about ₹99,230 in the ICICI Prudential Large Cap Fund.
Over 10 years, ₹1 lakh invested in the UTI Nifty 50 Index Fund would have grown to roughly ₹3.26 lakh, while the same investment in the ICICI Prudential Large Cap Fund would have reached ₹3.96 lakh today.
UTI Nifty 50 Index Fund vs ICICI Prudential Large Cap Fund: Key ratios
ICICI Prudential Large Cap Fund has an alpha of 3.33, indicating that it has generated returns above its benchmark through active management. However, UTI Nifty 50 Index Fund has a negative alpha of 1.51, indicating it aims to track rather than outperform the benchmark.
The active fund also has a slightly lower beta of 0.92 compared with the index fund’s 0.95, suggesting slightly lower sensitivity to overall market movements.
UTI Nifty 50 Index Fund has a much lower base expense ratio of 0.18%, while the actively managed ICICI Prudential Large Cap Fund has a higher base expense ratio of 0.72%.
UTI Nifty 50 Index Fund vs ICICI Prudential Large Cap Fund: Portfolio holdings
The portfolio composition of the two funds reflects their different investment approaches.
- Asset allocation: UTI Nifty 50 Index Fund allocates 99.77% of its assets to equities and 0.23% to cash, while ICICI Prudential Large Cap Fund allocates 94.77% to equities, 0.79% to debt, and 4.44% to cash.
- Market-cap exposure: UTI Nifty 50 Index Fund has 100% exposure to large-cap stocks. ICICI Prudential Large Cap Fund has 91.62% in large-caps, 8.35% in mid-caps, and 0.02% in small-caps.
- Sector exposure: Financial services account for 35.07% of UTI Nifty 50 Index Fund’s portfolio, compared with 28.98% for ICICI Prudential Large Cap Fund.
- Top holdings: Both funds hold , , and among their top investments.
What is the difference between passive and active funds?
Passive funds, such as index funds and ETFs, seek to replicate the performance of a benchmark index. Since there is limited fund manager intervention, these funds generally have lower costs and focus on delivering returns in line with the benchmark.
On the other hand, active funds rely on fund managers to select stocks and adjust portfolio allocations to outperform a benchmark. This approach offers the potential for excess returns, known as alpha, but also depends on the manager’s investment decisions and typically comes with higher expenses.
Disclaimer: This is purely for educational/ informational purposes and should not be taken as any investment advice. Always consult a SEBI-registered advisor before making any investment decisions.