When a mutual fund invests a large percentage of its corpus in companies with large market capitalization, it is called a large cap fund. These are companies with expansive businesses. Large cap mutual funds invest in companies that are financially secure and show stable and steady growth and high profits consistently year after year, unlike small cap funds. These funds are ideal for investors who are looking for long-term capital growth.
Here are five large cap mutual funds that you can invest in-
Axis Bluechip Fund
In each of the last 5 years, it has exceeded both category and benchmark. It selects stocks based on their ability to generate earnings steadily for sustained periods of time. Usually, it invests 80-100% in large cap companies and the remainder (if any) in either small or mid cap stocks. Over the last 5 and 3 years, the annualized returns have been 17% and 11.99% respectively, which go 2-3 percentage points over the category returns.
The fund is managed by Shreyash Davalkar.
ICICI Prudential Blue Chip Fund
Since it was launched, it has consistently beaten both category and benchmark in the last 7 years. It invests more than 90% of its assets in large cap funds and the remaining in mid-cap funds. Its 3-year annualized returns have been 9.8% and the 5-year returns reached 16.8%, both of which are 1-4 percentage points more than the benchmark.
The fund manager is the very capable Sanakaran Naren who took over in 2017.
ABSL Frontline Equity Fund
With 3-year annualized returns of 8.3 % and a 5-year annualized return of 9.25 %, it exceeds category returns by 2% and benchmark returns by 4%. It invests in companies from the S&P BSE 200 index.
Its fund manager is Mahesh Patil.
SBI Blue Chip Fund
It has exceeded both benchmark and category repeatedly in the last 5 years. It invests 80% of its resources in large cap companies while the rest is invested in mid-cap funds. Its annualized returns for the last 3 years have been 8.9% and for the last 5 years, 18.1%, which are 5% higher than benchmark returns and 3% more than category returns.
Ms Sohini Adani is at the helm as the fund manager.
Reliance Large Cap Fund
It has beaten both benchmark and category over the last 5 years. It invests in the stocks of the top 100 companies by market capitalization. Its 3-year and 5-year returns have been 9.61% and 18.62%.
The fund manager is Mr Shailesh Raj Bhan
Before you zero in on the fund you want to invest in, read the fine print carefully and assess its performance and invest accordingly.
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