Should you invest in Large Cap funds despite low returns compared to small and mid-caps?

financialexpress.com:

With large-cap funds giving lower returns than small-cap and mid-cap mutual funds, many investors want to know whether they should continue to have large-cap funds in their portfolios or not. In an online Q&A with FE Money recently, Chintan Haria, Head of Investment Strategy at ICICI Prudential AMC shared why investing in large-cap Nifty50-based funds makes sense. He also talked about why the Nifty50 index is considered the ideal way to have exposure to large-cap stocks. Edited excerpts:

Why is the Nifty50 index considered the ideal way to have exposure to large caps?

Nifty50 index consists of 50 of the largest Indian companies in terms of market capitalisation that are listed on the National Stock Exchange. Spread across 14 different sectors, the companies present in the index are the leading and the most profitable names in their respective sectors. Also, since the index is rebalanced semi-annually, an investor can rest assured that they have steady exposure to the 50 best companies available in the listed universe.

For investors looking to invest in Indian equities, a Nifty 50 index fund or an ETF can be a good starting point. Similarly, for large-cap exposure in a portfolio, investors can consider an index fund or the ETF based on the Nifty 50 index.

Returns from Large Cap funds have been lower compared to mid and small caps. Why should investors still consider having large-cap funds in their portfolios?

From a portfolio perspective, large caps have a distinct role. A large-cap offering will comprise of some of the most established businesses in their respective industry. These companies will be stable in nature, with a robust balance sheet and better corporate governance standards. As a result, large caps by