Some mutual funds are better equipped than others to tackle market volatility; and large-cap funds are invariably the best of the lot to rely upon to navigate through any market turbulence.
Large-cap funds have an edge over other categories when it comes to navigating market volatility. Here are the top-five large-cap funds that gave the best returns across tenures
Some mutual funds are better equipped than others to tackle market volatility; and large-cap funds are invariably the best of the lot to rely upon to navigate through any market turbulence.
This carries all the more significance given the volatility in the Indian market after the announcement of the general elections results, with the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) winning 293 seats, but the BJP itself falling short of the absolute majority mark of 272 seats in Parliament. However, the markets are on a recovery phase from the fall on June 4, 2024, as the NDA alliance has gained more support in these few days, further taking its total tally of seats in Lok Sabha to 303.
Large-cap funds have an edge when it comes to market volatility as they invest in stocks with the largest market capitalisation, thus showing consistent growth across investment tenures. Collectively, large-cap funds have given returns of 31.77 per cent on an average in the last one year. They have shown stability during periods of economic turbulence and offer better risk-to-reward ratios than other funds.
As large-cap funds are suited for tenure above three years, the analysis mainly constitutes longer tenures. So, Quant Large Cap Fund that got the highest returns in one year at 53.28 per cent returns and third rank holder Bank of India Bluechip Fund in terms of one year returns (40.12 per cent) deserves a special mention.
So, here are the top performers in the large-cap category based on three-year returns.
1] Nippon India Large Cap Fund
Nippon India Large Cap Fund is the top-performer in the large-cap category in terms of three-year returns (23.50 per cent). It has been a consistent performer across tenures in this segment. The fund has delivered the highest 10-year return in the category (16.49 per cent). When it comes to five-year returns, only five funds in the category have clocked above 18 per cent, and this fund is among them.
Over the past year, the fund gave a decent return of 36.78 per cent.
2] JM Large Cap Fund
JM Large Cap Fund emerged as the second-best performer in the three-year tenure of large-cap category with a return of 20.41 per cent. The fund is among top-five performers in both one-, three- and five-year returns. Over the past year, the fund delivered the second highest one-year return with 42.25 per cent returns. It has an impressive five-year return of 18.30 per cent. The daily assets under management (AUM) is one of the smallest in the category at Rs 187.85 crore.
3] ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund has the largest AUM of Rs 55,680 crore in the large-cap category. It has the third-highest three-year returns of 20.16 per cent. The five-year return stands at 18.29 per cent, while 10-year returns are 15.59 per cent, both among the top-five performances in respective tenures. Over the past year, it has delivered 36.61 per cent return.
4] HDFC Top 100 Fund
HDFC Top 100 Fund clocked a remarkable 19.34 per cent in three years. Despite none of its other performances in the top-five category, the fund has given a decent return of 32.58 per cent in one year and 15.56 per cent in five years. The fund has a healthy AUM of Rs 33,350 crore, a testament to its popularity among investors.
5] Baroda BNP Paribas Large Cap Fund
Closing the list is Baroda BNP Paribas Large Cap Fund, which is the second-best performer in terms of five-year returns in the segment. Apart from Nippon India Large Cap Fund, this is the only fund that has found its place among the top-five performers across all tenures. Over three years, it gave a decent return of 18.92 per cent. Investors received 37.80 per cent, 18.46 per cent and 15.69 per cent over one year, five years and 10 years, respectively.