Large Cap Mutual Funds makes an investment in the stock of companies with large market capitalization. Large Cap Mutual Funds are popular for steady and sustainable returns. A large cap fund might give moderate returns compared to small and mid-cap funds. However, if you are low-risk investor you can plan to invest in large cap mutual funds. In this post, we will explore everything about Large Cap Mutual Funds.
Who should Invest in Large Cap Mutual Funds?
An investor with a conservative work profile seeking moderate return or first-time equity investor can invest in Large Cap Mutual Funds. Large Cap Fund invests in stocks of big companies that are leaders in their field. These types of stocks are fail-safe and likely to give stable return irrespective of market conditions.
If you are a patient investor and ready to invest for long term you can prefer large cap funds.
Things to consider while investing in Large Cap Funds
- A risk associated with large cap fund is low. These funds are suitable for low risk investors.
- Large Cap Funds generate less returns compared to mid-cap, small cap and multi cap funds. The returns from these funds will be less volatile.
- These funds are not suitable for short term. You should purchase this fund if you are a long-term investor.
- Your investment objective or financial goal should match with the objective of the fund.
- One should do proper research and evaluate various factors before making a selection of mutual fund.
- It is recommended to invest in the direct fund while making an investment. Make sure to invest via SIP route instead of lump sum.
- Short-term capital gain tax and long-term capital gain tax are applicable to large-cap funds.
Top 5 Best Large Cap Mutual Funds for Investment 2019
SBI Blue Chip Fund – Direct Growth
SBI Blue Chip fund is one of the most popular large cap fund. This fund has generated 15% returns since launch. It is five star rated fund. The objective of this fund is to provide long term growth in capital via active management of investment. A major investment of this fund is in financial, automobile and FMCG sector. It is a very good fund for investment.
HDFC Top 100 Fund – Direct
HDFC Top 100 Fund is one of the best large cap fund for investment. The objective of this fund is to provide long term appreciation by investing in large cap companies. This fund is managed by an experienced fund manager. The expense ratio of this fund is low. One can expect better performance from this fund in the future.
ICICI Prudential Bluechip Fund – Direct Growth
ICICI Prudential Bluechip fund is moderately risk fund. This fund has generated 16.5% return since launch. It is four stars rated fund. This fund has consistently outperformed its benchmark Nifty 50 since launch. It is managed by an experienced fund manager. It is a good fund for the conservative investor.
Reliance Large Cap Fund – Direct Growth
Reliance Large Cap Fund is next in the list of best large cap funds. It is five star rated fund. It is open-ended fund with the objective to generate long-term capital appreciation by investing in large cap companies. Before recategorization, this fund was known as Reliance Top 200 Fund. This fund is in the high-risk category.
Aditya Birla Sun Life Frontline Equity
Aditya Birla Sun Life Frontline Equity is one of the best funds in large cap category. It is four stars rated fund. This fund has generated 20.6% return since launch. This fund has outperformed its benchmark S&P BSE 200 since its launch. This fund maintains the allocation of 90% in large cap and 10% in mid cap.
Over to you
What is your take on the large-cap mutual funds mention above?
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