Best large cap mutual funds to invest in 2020 in India
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
Top Large Cap Mutual Funds
The following are the top-rated large-cap funds as per ZFunds scoring for the quarter ended 30th June 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|
|ICICI Prudential Bluechip Fund Growth||5.76||24,246||4.71||4.32||6.89|
|Nippon India Large Cap Fund - Growth||6.38||10,238||-2.16||1.64||4.69|
|Axis Bluechip Fund||6.09||15,945||6.78||10.07||9.34|
Returns as of 13 August 2020
1. ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund has been ranked as one of the top performers in the important parameters like concentration & volatility. Also, it has a good score in the metric of capture ratio as per ZFunds Ratings.
Though not a consistent performer, it has been able to beat its benchmark as well as category average returns over the long periods. This is a good fund for a long term investment.
The Fund also has a small exposure of approximately 9.62% in the mid-cap category.
A good fund for a long term investment.
- Rs. 10,000 invested in August 2015 would have been approx. Rs. 14,000.
- Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 69,778.
2. Nippon India Large Cap Fund - Growth
Nippon India Large Cap has been ranked in the top 3 funds because of its high valuation score as per ZFunds Ratings. Also, it has a good score in the important parameter of concentration.
The Fund also has small exposures of approximately 20% & 5% in the mid-cap & small-cap stocks.
Nippon India Large Cap fund has performed well over the long periods and has the ability to do well in the coming years because of its good valuations.
- Rs. 10,000 invested in August 2015 would have been approx. Rs. 12,600.
- Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 64,909.
3. 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 large-cap (99.86%) 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 significant margins over the long & short terms. The high valuations of the fund don’t seem to be providing much value(compared to the ones with low valuations) in the near term but it will experience lower volatilities as compared to others.
- Rs. 10,000 invested in August 2015 would have been approx. Rs.15,600.
- Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 77,662.
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Updated Date: August 27, 2020