Top 5 Best Large Cap Funds for 8-10 Years
Many mutual fund experts strongly believe that this year is likely to deliver better large cap returns as their valuations are attractive. The time when mid-cap and small-cap funds are going through severe correction phase, equity mutual fund investors can opt for a conservative method of investment with large-cap schemes.
Recently, after several weeks of consolidation, Nifty was successful in touching an all-time high. This offered new opportunity to some of the large cap funds to create exceptional returns. Thus, we have covered a list of such five large-cap funds which you can plan investing in now for a long-term with an aim to earn high. Apart from this, you will get to know what large-cap funds are and points to check before investing in them. Let’s get started!
Large Cap Mutual Funds: Definition & Characteristics
Mutual funds which invest the larger fraction of their investment in companies with large market capitalization (preferably Rs 20,000 crore and above) are referred to as Large-cap funds. Such schemes offer stable and sustainable returns over a period of time.
5 Top Recommended Large Cap Funds to Invest in 2018
Let’s see how these large cap funds have performed in the past
|Scheme Name||1 Year (%)||3 Year (%)||5 Year (%)|
|Axis Bluechip Fund (G)||21.71||12.63||18.39|
|ICICI Prudential Bluechip Fund (G)||10.71||11.21||18.62|
|Reliance Large Cap Fund (G)||10.45||10.51||21.67|
|SBI Bluechip Fund (G)||7.25||10.04||20.08|
|Aditya Birla Sun Life Frontline Equity Fund (G)||6.87||10.06||19.24|
|As on August 3, 2018|
|Scheme Name(%)||Stdev (%)||Beta (%)||Sharpe (%)|
|Axis Bluechip Fund (G)||12.99||0.87||0.5|
|ICICI Prudential Bluechip Fund (G)||13.27||0.93||0.39|
|Reliance Large Cap Fund (G)||15.03||1.03||0.29|
|SBI Bluechip Fund (G)||12.81||0.87||0.32|
|Aditya Birla Sun Life Frontline Equity Fund (G)||13.30||0.93||0.31|
|as on August 3, 2018|
When and Why to Include Large Cap Funds to Your Portfolio?
There is no good time to make an investment in mutual funds. Investment should be made considering one’s investment goal, risk appetite, and time period. With the rising volatility in the market, the large cap stocks provide a cushion to the investors who are willing to generate stable returns. Thus, it is the right time to invest in large-cap funds. Large cap companies tend to have good amount of experience in the market and they carry a strong track record which is often backed by robust corporate-government policies. Therefore, one can invest in them any time as per requirement. Moving on, let’s check which mode is suitable to make an investment in large cap schemes.
Which Mode Is Better to Invest in a Large Cap Fund - SIP or Lumpsum?
These funds have been characterized as an ideal investment option for new investors or those who do not wish to take risks. Due to consistent and stable returns, such schemes are ideally good for both lumpsum as well as SIP investment provided the investor is risk aversive. However, if you’re a newbie in the mutual fund world, then you should seek the investment of starting with a small amount. Several schemes in our recommendation can help you start a SIP investment with even a minimum amount of Rs 500- Rs 1000. When you invest in a large-cap fund via SIP, you can enjoy the benefit of rupee-cost averaging and compounding. This way, you will able to purchase more units when the NAV of the fund you have invested in is low, and vice-verse.
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Points to Check Before Investing in
From the very beginning, it’s quite clear that large-cap funds are not as risky as small cap funds and mid-cap funds. But it is still recommended to check for some important measures which can affect the risk and returns of the scheme. Therefore, we have listed a few of the factors which are:
- Exit Load
Exit load is the percentage of NAV amount that you need to lose when you sell your units and plan to exit. The lower the exit load of any scheme, the more the profits you can keep to yourself.
- Fund Manager and Details
When you invest in a mutual fund scheme, you actually bet on the investment style and strategy of the fund manager, for he/she is the one who will invest your money to make profits. Thus, look for a scheme with experienced and expertise fund manager.
- Past Performance of the Fund
It is vital to check part performance, especially in the case of large-cap funds. In this part, the returns’ records should be checked in both bearish and bullish market cycle. Pick only those schemes which have given consistent returns in all market conditions.
- Expense Ratio
This is a direct expense that you need to bear which includes brokerage cost, cost charged by respective AMC, etc. Check and compare this parameter with funds from the similar zone to make the right choice.
Lastly, do not merely fall for returns; as discussed above, check whether your investment objective is in line with that of the fund. As an investor, we know it’s difficult to evaluate the risk measures such as Standard Deviation, Sharpe Ratio, Beta, etc. For this, we would suggest you to consult a financial advisor or an industry expert before making a final decision.
You can even seek guidance from the experts associated with MySIPonline or invest directly in the above-listed schemes through our user-friendly online investment platform.