Read the article for the details of the top performing large-cap funds.
Large-cap mutual funds are the mostly opted equity funds because their aims and investment style match with the goals of several investors. There are various large-cap funds available in the market which serve multiple objectives of the investors. These are the funds which invest their corpus in the companies which are well established and financially stable to withstand the uncertain volatility. As per the norms of SEBI, a large-cap fund has to invest at least 65% of the corpus in the equity instruments of large-cap companies. The large-cap companies are the companies which are in the top 100 companies in India, ranked according to the market capitalisation. Choosing the best large cap fund can be a perplexing task as most of them are focused on delivering long-term capital appreciation through a specific style and strategy. Top Performing large-cap funds are described below.
ICICI Prudential Bluechip Fund (G): It is a top performing large-cap fund for a long time and is very popular among the large-cap investors. It has AUM of Rs 17,496 crore as of 30th June 2018. Thousands of investors have opted for it due to the consistency and stability in the returns it has provided over the long term. It has generated an annualised return of 17% in the last 5 years and 14% in the previous 2 years. The absolute, as well as rolling returns, have been above the benchmark and peers. It is managed by Mr Rajat Chandak and Mr Sankaran Naren since July 2017 who also allocate a maximum of 10% of the corpus in mid-cap companies depending on the market trends.
SBI Bluechip Fund (G): It is another top performer who has a slightly aggressive portfolio as the fund manager Ms Sohini Aadani invests 10-20% of the corpus in small and mid-cap companies. It has generated 18.55% annualised return in the last 5 years and 11% in 2 years. The fund has performed well in the positive as well as negative market trends and has consistently beaten its benchmark. It has assets under management of Rs 19,064 crore as of 30th June 2018.
Axis Bluechip Fund (G): It has performed dramatically well recently when the equity market was uncertain. It has beaten the benchmark and peers by a significant margin regarding rolling returns and absolute returns. It entered the bear market of 2008 but has performed significantly well in the adverse market trends. In last 1 year where the category average is 4.50%, this fund has produced a remarkable 23.2% return. It has generated an annualised return of 17.4% and 19.5% in the last 5 and 2 years, respectively. The fund manager Mr Shreyas Devalkar invest an almost negligible amount in mid and small-cap companies.
Aditya Birla Sun Life Frontline Equity Fund (G): It is a highly appreciated large-cap fund with assets under management of more than Rs 20,000 crore. It has generated an annualised return of 17.5% in 5 years and 12.1% in 2 years. The annual absolute returns of 2017 and 2014 were 44.5% and 30.4% respectively. The fund is managed by Mr Mahesh Patil, who invest 10-20% of the corpus in the mid-cap companies. It has a slightly high-risk portfolio but has performed well in the positive and negative equity market.
Large-cap funds are less prone to risk factor, hence the investor can start a SIP and sit back to watch the corpus grow over a long term. It is essential to know every detail about the scheme before investing in as every scheme has its pros and cons. It is always advisable to invest according to the financial goal. Large-cap funds provide moderate returns and have low-risk factor, hence they can fulfill a variety of purposes for the investors.(data as of 24th July 2018)
