Best large cap mutual funds to invest in 2021 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||AUM (in Crores)||1-Year Return||3-Year Return||5-Year Return|
|ICICI Prudential Bluechip Fund||25,224||8.53||5.88||11.50|
|Axis Bluechip Fund||20,480||14.17||13.41||14.69|
|Nippon India Large Cap Fund||10,928||0.55||2.58||9.10|
|Mirae Asset Large Cap Fund||20,797||9.31||7.33||13.35|
|HDFC Top 100 Fund||17,566||1.49||3.25||9.80|
|Franklin India Bluechip Fund||5,440||8.72||3.60||8.59|
|UTI Mastershare Unit Fund||7,008||13.59||8.15||11.35|
|Aditya Birla Sun Life Frontline Equity Fund||18,746||9.35||4.88||10.39|
|SBI Bluechip Fund||24,880||10.88||6.11||10.64|
|Kotak Bluechip Fund||1,944||11.01||7.82||11.07|
*Returns as of 22 December 2020 and AUM as of 30 November 2020.
1. ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund has been ranked as one of the top performers because of its high scores in important parameters like volatility & 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 longer periods. This is a good fund for a long-term investment.
The Fund also has a small exposure of approximately 6.42% in the mid-cap category.
A good fund for a long-term investment.
- ₹10,000 invested in December 2015 would have been approx. ₹17,000.
- ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹80,000.
2. Axis Bluechip Fund
One of the most consistent performers in the large-cap space since its inception. The fund has almost its complete corpus invested in large-cap (100%) 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 is expected to experience lower volatilities as compared to others.
- ₹10,000 invested in December 2015 would have been approx. Rs.19,000.
- ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹91,100.
3. Nippon India Large Cap Fund
Nippon India Large Cap has been ranked in the top 10 funds in large-cap space because of its high valuation score as per ZFunds Ratings. Also, it has a decent score in the important parameter of concentration.
The Fund also has small exposures of approximately 14% & 6% in the mid-cap & small-cap stocks.
Nippon India Large Cap fund has performed well over the longer periods and has the ability to do well in the coming years because of its good valuations.
- ₹10,000 invested in December 2015 would have been approx. ₹15,100.
- ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹74,900.
4. Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is amongst the top large-cap funds because it has delivered high returns in the past years and has a good score as per ZFunds Ratings.
Mirae Asset Large Cap Fund has been ranked among the highest in parameters of capture ratio, risk-adjusted score & consistency as per the ZFunds ratings.
The fund also has an exposure of approximately 13.6% & 1% to midcap and smallcap stocks respectively.
The Fund has performed very well in recent years and has the capability to perform well and beat its benchmark as well in the coming years.
- ₹10,000 invested in December 2015 would have been approx. ₹18,300.
- ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹83,400.
5. HDFC Top 100 Fund
HDFC Top 100 Fund is one of the top funds in the category of large-cap funds as it has given good returns over longer periods. HDFC Top 100 fund also has a good overall score and is ranked highest in the metrics of valuations, concentration, and volatility as per the ZFunds ratings.
The fund also has a small exposure of approximately 9% & 1% in Mid and Small-cap companies.
HDFC Top 100 Fund has the potential to generate good returns in the coming years given its outstanding valuations.
- ₹10,000 invested in December 2015 would have been approx. ₹15,600.
- ₹1,000 invested in monthly SIP since January 2016 would have been approx. ₹74,600.
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