Since the year’s beginning; the stock market’s performance has done exceptionally well with Sensex breaching the 53,000 points mark again.
Here are 8 large-cap funds that have given outstanding stock market trading returns since January 2021.
All of these funds are not rated by some of the leading agencies that conduct research, hence they are not suggested to invest. Before taking a dig deep into large-cap funds; let’s understand the large-cap funds in detail:
Large Cap Funds
Large-cap funds are a part of equity trading; are equity schemes that heavily invest in large-cap companies. These funds constitute at least 80% of their total assets in equity related instruments in large-cap companies.
As per the SEBI, the best 100 companies, having a full market capitalization are categorized as large-cap companies.
Reasons to Invest in Large Cap Funds
Large-cap companies have a competitive edge in their respective sectors. Also, they have a sustainable market share which makes them large-cap companies. The companies that come under large-cap companies have steady cash flows, strong balance sheets that makes them strong enough to handle difficult situations.
These companies are traded more frequently and as a result, they are more liquid than other companies.
The factors stated above make large-cap companies less volatile than other companies and more capable of withstanding stock market downturns.
Hence, by investing in large-cap funds, investors will save themselves from the jeopardy of selecting independent stocks while benefiting from a diversified portfolio that consists of top Indian companies.
Generally, large-cap funds constitute the base of at least 50% of equity’s portfolio.
- Franklin India Bluechip Fund
As per the stock market research agency, the fund Franklin India Bluechip Fund has given an outstanding return of 23.40%, since the beginning of the year. This is only for mutual funds that come in the large-cap fund. Although the company Franklin India Bluechip fund invests in a variety of companies, they’re majorly invested in large-cap companies.
The long term returns from this fund are 13.44% on an annualized return for 3 years and 11.2% on an annualized basis for 5 years. The SIP of Franklin India Bluechip Fund starts with a small amount of Rs 1000 every month.
- Tata Large Cap Fund
As per the research report from top analysts, the fund comes under the second position among large-cap stocks as they give high returns since the beginning of the year. The fund gave a return of 20.87% from 1 January to 14 July 2021. This fund invests in large-cap blue-chip companies.
SIP of Tata Large Cap Fund starts with Rs 150 per month. The Tata large Cap Fund is not that big company under the management is less than Rs 1000 Crore.
The three-year return of Tata large Cap Fund is 12.6%, while the five-year returns are 11.91%. As per the sources, Tata large Cap Fund has invested in major stocks like ICICI, HDFC etc.
- Mahindra Manu Large Cap Pragati Yojna
Since January 2021, the stock has been able to generate returns of 19.38%, and that’s the reason the fund has been ranked as No.3 in stock rating for the year to date returns in the large-cap category.
The fund is very small and newly launched, hence it is not possible to analyze the long term returns. The AUM of this fund is Rs 123 Crores. Since the company has holdings in stocks such as ICICI Bank, Reliance Industries and Infosys.
The minimum investment amount of the fund Mahindra Manulife is Rs 1000 every month.
- Nippon India Large Cap Fund
Like the above companies, Nippon India Large Cap Fund invests in the major listed companies in the business. The fund is ranked fourth in terms of the returns it gave to the investors up to date. Surprisingly, the fund allows investors to start a SIP of Rs 100, and the minimum amount required to invest is Rs 100.
On an annualized return, the three-year return of the fund is almost 13.5%, which is in line with how the markets have performed the previous year.
We wish to emphasize the fact that the Sensex at Rs 53,000 points is at a new record and any large scale exposure to large-cap equity mutual funds can consume wealth. Therefore, it’s more important to invest, if you select the SIP mode of this fund.
- IDBI India Top 100 Equity Fund
The fund gave 18.21% with the year to date which makes this fund come in the large-cap fund. This large-cap fund gives exposure to stocks like ICICI, HDFC Bank, Infosys. Many investors don’t suggest going for the fund as if the stock market goes up or down, it will highly affect the fund’s growth rate.
- ICICI Prudential Bluechip Fund
The fund heavily invests in large-cap companies as the fund has good quality management, strong fundamentals, growth potential and a proven track record. The strategy is maintained at the ICICI Prudential Bluechip Fund so as to ensure portfolio diversification and minimize concentration risks.
It adopts a buy and holds strategy for investing while selecting the bottom-up approach for the selection of stock.
The fund also takes huge exposure to high conviction scripts in order to generate outstanding returns in a short period of time.
- SBI Bluechip Fund
The scheme mainly invests in large-cap stocks that have a good brand entity and market sectors in their respective segments. This is because the funds may also invest up to 20% of their portfolio in equities than other funds.
The fund follows a combination of investing and growth with a mix of top-down approach and bottom-up approach for the selection of stocks across different sectors.
- IDFC Large Cap Fund
IDFC funds invest in large-cap companies with an opportunistic allocation to small and mid-cap companies not exceeding 20% of the fund portfolio. The objective is to generate consistent returns with low volatility.
The fund is based on three pillars – buying the right sectors, buying the sector leaders, and allocation to small/mid-cap stocks.
Mutual funds are always known for better returns. Also, these investments are much less risky than other equity-related instruments.
Therefore, many investors always prefer mutual funds over other equity-related instruments. Amongst all mutual fund schemes, large-cap funds are often associated with fewer risks and also they offer a minimum amount as a SIP.