Large-cap mutual funds are considered the safest bet among equity funds, with a three-year average return of 22.61 per cent in the category. Learn about India’s top 5 large-cap funds.
Large-cap mutual funds are known for their stable returns as they invest in companies with large market capitalisation, a strong track record and robust brand recognition. The large-cap mutual funds invest in India’s top 100 companies by market value.
According to the Securities and Exchange Board of India (Sebi) guidelines, the large-cap equity funds must allocate a minimum of 80 per cent of their resources to large-cap stocks. “Large-cap stocks tend to hold up better in recessions, but they also tend to underperform small-cap stocks when the economy emerges from a recession. Large-caps tend to be less volatile than mid-cap and small-cap stocks and are therefore considered less risky,” says AMFI.
In recent times, large-cap mutual funds have demonstrated their worth, offering returns of 18.28 per cent over one year and an impressive 22.61 percent over three years. While size and assets under management (AUM) are often key factors in evaluating funds, returns get primary consideration in fund allocation. A bigger AUM also reinforces investors’ confidence.
Nippon India Large Cap Fund
Nippon India Large Cap Fund secured the top spot with a remarkable 1-year return of 27.05 per cent. This fund has consistently outperformed others in the category, making it an attractive choice because the fund also clinched the top spot in 3-year returns with an outstanding return of 31.80 per cent. Its portfolio holds a substantial Rs 16,597 core in assets under management.
HDFC Top 100 Fund
HDFC Top 100 Fund claimed the second spot with an impressive 1-year return of 25.11 per cent. This fund can also be chosen for consistency because it gave a strong performance in the 3-year category, returning 28.34 per cent, holding the second position. The fund holds the third position in terms of size with an AUM of Rs 26,319.50 crores.
Over five years, it maintained its impressive track record with returns of 14.16 per cent. In a 10-year track record, it boasts returns of 16.18 per cent. It is the most expensive fund in the category in terms of NAV, with each unit at Rs 928.63.
ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund also takes the third spot in both 1-year and 3-year returns at 22.70 per cent and 26.03 per cent, respectively. It showcased consistent performance that exceeded the benchmark. ICICI Prudential Bluechip Fund has assets worth Rs 41,789.60 crore, the largest in terms of AUM, highlighting the investors’ confidence in the fund.
Edelweiss Large Cap Fund
Edelweiss Large Cap Fund is another top performing fund, ranked fourth in terms of 1-year return at 22.41 per cent and 3-year returns at 23.53 per. The net asset value (NAV) of the fund is Rs 71.45. The fund’s AUM is Rs 555 crore, although it is over 10 years old.
SBI Bluechip Fund
In terms of 1-year returns, several funds have outperformed the SBI Bluechip Fund, but when consistency and AUM is also taken into account, the SBI Bluechip fund outperforms other funds, with one year returns at 19.96 per cent and 3-year returns at 24.80 per cent. The SBI Bluechip Fund holds the second spot for AUM at Rs 39,703.33 crores.