It is widely held that equity mutual funds perform better over the long term. Large-cap funds, which invest in well-established corporations like those classified as “Blue Chips” or “Large Caps,” are thought to be safer than their smaller and medium-cap counterparts. Experts advise, however, that one shouldn’t base investing decision just on historical results because there is no assurance that a fund will continue to perform as well in the future.
An investor’s risk tolerance, their needs, and the characteristics of the fund itself should all factor into their final decision. Before making any investments, it is important to do some research on your own and consult a financial expert.
One can also check the top performing funds on our website. The website has additional features that can help the investors make informed decision. Here is the list of the top 5 large cap funds to invest. The funds are selected based on 3-year average rolling returns and up capture and down capture ratio.
What exactly is meant by the terms ‘up capture’ and ‘down capture ratio’?
If a fund’s upside capture ratio is greater than 100, this suggests that the fund has, on average, done better than the benchmark during times when the benchmark has generated positive returns. In the meantime, a downside capture ratio that is lower than 100 suggests that a fund has suffered losses that are less severe than those of its benchmark during times when the benchmark has been in the red.
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Mirae Asset Large Cap Fund –
During the last 10 years the fund has generated a 3-year average rolling returns of 15.31% and has been able to beat Nifty 100 index (a large cap index) 96.69% of the times during last 10 years. The fund has a Up Market Capture Ratio of 102% and a Down Market Capture Ratio of 91% over last 10 years.
Canara Robeco Bluechip Equity Fund –
During the last 10 years the fund has generated a 3-year average rolling returns of 13.38% and has been able to beat Nifty 100 index (a large cap index) 92.45% of the times during the last 10 years. The fund has a Up Market Capture Ratio of 94% and a Down Market Capture Ratio of 78% over last 10 years.
Axis Bluechip Fund –
During the last 10 years the fund has generated a 3-year average rolling returns of 13.82% and has been able to beat Nifty 100 index (a large cap index) 89.98% of the times during last 10 years. The fund has a Up Market Capture Ratio of 93% and a Down Market Capture Ratio of 73% over last 10 years.
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ICICI Prudential Bluechip Fund –
During the last 10 years the fund has generated a 3-year average rolling returns of 13.11% and has been able to beat Nifty 100 index (a large cap index) 84.96% of the times during last 10 years. The fund has a Up Market Capture Ratio of 96% and a Down Market Capture Ratio of 89% over last 10 years.
Kotak Bluechip Fund –
During the last 10 years the fund has generated a 3-year average rolling returns of 12.13% and has been able to beat Nifty 100 index (a large cap index) 74.70% of the times during last 10 years. The fund has a Up Market Capture Ratio of 99% and a Down Market Capture Ratio of 98% over last 10 years.
Large Cap Funds can be a good alternative for those who want to invest in equities but aren’t yet comfortable with the higher levels of volatility that come with doing so. The amount of returns you generate is dependent on how long you plan to keep your money invested. In order to receive greater returns, it is advisable that you invest in these funds for a minimum of three to five years.
In a nutshell, large caps funds are a good option for investors who want to acquire market leaders, seek less unpredictable returns, and build a solid foundation for their portfolios. Those who are willing to take on more risk in their investments may find Small and Mid-Cap stocks more appealing.
(By Abhinav Angirish, Founder, Investonline.in)
Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.
