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Investors put their money in mutual funds according to their goals and risk appetite. Aggressive investors buy units of mid cap and small cap mutual funds while low-risk takers go for index funds or large cap funds. If you fall in this category, this article is for you. In this post we have discussed about top large cap mutual fund.
To begin with, first, we should have a clear idea about Large Cap Mutual Funds. This will help you to understand things very easily. Hence, let us know first what is large cap mutual fund.
Large Cap Mutual Fund
A large cap mutual fund is a fund that invests in large cap companies. Now, you may ask, hey author, what does it mean when we say large cap company. Well, let us answer this.
Large Cap Company
When we say large cap company, here cap is the abbreviated form of capitalization. Hence, Large cap company means those companies which have large market capitalization. If you do not know what is market capitalization, click here. In India, we have a specific standard to categorize companies into the baskets of large/small/mid cap. In India, a company with a market capitalization of Rs 20,000 crore or more is called a large-cap company. For example, Nestle India, Page Industries, Reliance, HDFC Bank, etc. are large-cap companies. These companies are also called Bluechip companies.
The large cap mutual fund houses invest the fund of their investors in these large cap stocks. Assuming, you have understood what a large cap mutual fund house does, we are moving into the second part of this article, which is best large cap mutual funds.
Top Large Cap Mutual Fund
As we say always, investors should pick mutual funds according to their goals and risk appetite. Even when you are investing in large cap or Bluechip companies, various factors like fund distribution, sector allocation, turnover ratio, etc. result into varied returns.
Considering the above factors, we have listed below the top 10 large cap mutual funds (and a bonus mutual fund) which have given more than 10% of average annual return (this is because while investing in mutual fund, the minimum expected return should be 10%). You can choose any fund from the list.
Top 10 Large Cap Mutual Fund
|Fund Name||Growth % in last 5 Years||Expense Ratio||AUM|
|Lock In Period||Turn Over (in %)|
|Canara Robeco Bluechip Equity Fund Plan Growth||13.25%||0.34%||6858||5000/1000||1%||NIL||47.91|
|Axis Bluechip Fund Plan||12.92%||0.50%||33,836||5000/500||1%||NIL||61.45|
|Mirae Asset Large Cap Fund Plan Growth||11.58%||0.57%||31,292||5000/1000||1%||NIL||23.82|
|ICICI Prudential Bluechip Fund Plan Growth||11.32%||1.06%||30,956||100/100||1%||NIL||17.79|
|Edelweiss Large Cap Fund Plan Growth||11.25%||0.98%||325||5000/100||1%||NIL||132.02|
|Kotak Bluechip Direct Growth||11.14%||0.78%||4,279||1000/100||1%||NIL||32.76|
|UTI Master Share-Growth Option||11.08%||1.09%||9,566||100/100||1%||NIL||11.35|
|Invesco India Large Cap Fund Growth Plan||10.69%||0.90%||620||1000/100||0%||NIL||84.14|
|Baroda BNP Paribas Large Cap Fund Plan Growth||10.49%||0.98%||1,253||5000/500||1%||NIL||71.55|
|Nippon India Large Cap Fund Growth Plan||10.31%||1.08%||10,930||100/100||1%||NIL||93.79|
|Bonus Large Cap Mutual Fund|
|SBI Bluechip Fund Growth||10.03%||0.96%||31,029||5000/500||1%||NIL||11.54|
Best Large Cap Mutual Funds to Invest in 2022
From the above list, you can easily pick the best best large cap mutual fund for yourself. However, let us help you with this task.
In the above list, we can see that the highest return has been given by Canara Robeco Bluechip Equity Fund Plan Growth (CRB henceforth). The second highest return has been given by Axis Bluechip Fund Plan (AB henceforth) and the difference in return between these two funds is very low. However, you might have noticed that the AUM of ABP fund is almost five times of CRB fund. This tells us that investors are relying more on Axis Bluechip fund than Canara Robeco Bluechip Fund.
Further, the fund distribution in Canara Robeco Bluechip Fund is 95.2% in equity and 4.8% in Debt & Cash, whereas in Axis Bluechip fund it is 87.6% in equity and 12.4% in Debt & Cash. This enables ABP fund to minimize the losses at the time of bear run in stock market. In case of CRB Fund, it is very difficult as only 4.8% of its fund is allocated to Debt & Cash. Apart from the above, allocation of midcap companies is 1.4% in ABP Fund, whereas this allocation is 8.8% in Canara Robeco Bluechip Fund. This adds additional risk to Canara Robeco Bluechip Fund as in slowdown, the first hit is faced by small cap and mid cap companies.
To summarize, it has to say that, even allocating a good portion of its fund in Debt & Cash, Axis Bluechip Fund have been giving a healthy return of almost 13% for the last five years. Alongwith this, the expense ratio is also at low rate of 0.50%. Hence, if you want to get a healthy return without much worry, you may go with Axis Bluechip Fund. If you would have invested Rs. 10,000/month in this scheme for last five years, the present value of that amount would have been Rs. 8.86 lakh.
However, if you can take a little bit more risk, go with Canara Robeco Bluechip Equity Fund Plan Growth. If you would have invested Rs. 10,000/month in this scheme for the last five years, the present value of that amount would have been Rs. 9.34 lakh.
Other investors, especially students, college-goers who receive pocket money from parents or have very less money to put in, or first-time investors who want to know how mutual fund works, can go for Kotak Bluechip Direct Growth Plan. This is because, the expense ratio in this stock is very low and the minimum SIP amount is just Rs. 100, turn over ratio is also not bad. If you would have invested Rs. 10,000/month in this scheme for the last five years, the present value of that amount would have been Rs. 9.05 lakh.
We hope this article will help you to pick the correct large cap mutual fund for yourself. You can choose any of the above-mentioned large cap mutual funds and start a SIP or deposit a lumpsum amount and let the money grow.
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