Best large cap mutual funds to invest in 2020
Large Cap Funds are those mutual funds that invest a larger portion of their funds in equity shares of large-cap companies.
The Securities & Exchange Board of India or SEBI categorizes companies whose market capitalization is among the top 100 in the market as Large Cap. Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.
Some of the characteristics of a large cap fund are as follows:
- Known to offer stable and sustainable returns
- Might be outperformed by Mid-Cap and Small-Cap funds as large caps are less risky
- Lower volatility compared to Mid-Cap and Small-Cap funds
- Suitable for investors with medium to high investment horizon
- Suitable for investors with low risk appetite
- The stocks held by the fund are highly liquid
The following are the top-rated large-cap funds for the year 2020. The funds with the highest ZF Score (refer methodology here) are ranked at the top.
|Fund Name||ZF Score|
(in Rs. Crores)
|1-year Return||3-year Return||5-year Return|
|Axis Bluechip Fund Growth||6.95||12,717||-4.07||6.78||7.14|
|Mirae Asset Large Cap Fund Growth||6.25||15,347||-16.21||-0.10||5.60|
|ICICI Prudential Bluechip Fund Growth||5.63||21,821||-16.69||-1.03||3.47|
As of 11 May 2020
1. Axis Bluechip Fund
One of the most consistent performers in the large-cap space since its inception. The fund has almost the complete corpus invested in giant (87%) and large-cap (13%) stocks.
Axis Bluechip Fund has been ranked as the highest in terms of consistency, capture ratio & risk-adjusted score as per ZFunds Ratings.
The fund has consistently outperformed its benchmark by a significant margin over the long term, also from the inception.
- Rs. 10,000 invested in May 2015 would have been approx. Rs.14,585.
- Rs. 1,000 invested in monthly SIP since May 2015 would have been approx. Rs. 70,526.
2. Mirae Asset Large Cap Fund
Even though this fund has been recategorized in May 2019, it is one of the top-performing funds. The Mirae Asset large-cap fund has outperformed its benchmark as well as category average returns over a long horizon.
Mirae Asset Large Cap Fund is one of the highest performers in some parameters including capture ratio (fund’s performance relative to its benchmark in upward & downward trending markets) & consistency as per ZFunds Ratings.
The Fund has also scored well in terms of valuations.
Its small exposures of 14% & 2% in mid-cap and small-cap categories, respectively, gives it a slight diversification edge.
- Rs. 10,000 invested in May 2015 would have been approx. Rs. 13,577.
- Rs. 1,000 invested in monthly SIP since May 2015 would have been approx. Rs. 62,160.
3. ICICI Prudential Bluechip Fund
Though not as consistent as the Axis Bluechip Fund, ICICI Prudential Bluechip is a good fund for a long term investment.
ICICI Prudential Bluechip Fund has been ranked as one of the top performers in the important parameters like valuation, concentration & volatility. Also, it has been decent in terms of the capture ratio as per ZFunds Ratings.
The Fund also has a small exposure of approximately 10% in the mid cap category.
- Rs. 10,000 invested in February 2015 would have been approx. Rs. 12,250.
- Rs. 1,000 invested in monthly SIP since February 2015 would have been approx. Rs. 59,616.