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4 Best SIPs To Invest, In Large & Mid Cap Funds, Given Upto 75% Returns In 5 Years

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Market capitalization is an important factor that investors search for, before selecting a fund to invest in. Market capitalization (MC) is also identified as the worth of a publicly-traded company.

 

Why should you invest in Large and mid-cap funds?
 

Why should you invest in Large and mid-cap funds?

Market capitalization will be calculated by multiplying the stock price by the number of outstanding shares of the particular company. Investors who are starting in the SIPs and mutual funds field can look out for the market capitalization of the stocks, the SIPs are investing in.

Mutual fund SIPs primarily invest in the top 100 companies of India, and those are the biggest brands in our country. These brands are bluechip equities and have performed extraordinarily in the past years. Additionally, with the large-cap funds, you, as a new investor will get a better assurance of security about the fund. These equities have been present in the market for years, and are not expected to withdraw from the market easily. These stocks, however, generally give lesser returns than small or developing companies.

Here comes the importance of mid-cap funds. Rather than large-cap funds, the mid-cap funds generally perform better in the stock markets, because they have more potential for growth. These funds too offer a good security quotient. The Large & Mid Cap Funds will pick the stocks from the largest 250 stocks listed in the Indian markets, those that have the highest market capitalization. So, if a mutual fund SIP is investing both in large-cap and mid-cap funds, that means you, as an investor can be assured about both good returns and security.

Here are the 4 best SIPs listed below, those investing in large and mid-cap funds, and also performed well in the past years. These SIP funds are also having healthy AUM, or assets under management.

1. SBI Large & Midcap Fund

1. SBI Large & Midcap Fund

SBI Large & Midcap Fund is a Direct Plan, that has given (absolute returns) 16.31% return in the last 1 year, 46.92% return in the last 2 years, 54.81% in last 3 years, and 67.61% return in the last 5 years. This fund has been rated with 3 star by the reputed rating agency, Crisil. SBI Large & Midcap Fund's NAV stood at Rs. 380.38, till last traded. This fund's AUM is Rs. 5388.56 Crore, and the Expense Ratio is 1.23%.

The top 5 holdings of this fund are: ICICI Bank Ltd., Page Industries Ltd. - Fabrics and garments, HDFC Bank Ltd., Bharti Airtel Ltd., and Nuvoco Vistas Corporation Ltd. - Cement. This fund' Large Cap Investments are 32.16%, Mid Cap Investments are 26.09%, Small Cap Investments are 20.72%, and 18.68% in other funds.

2. Aditya Birla Sun Life Equity Advantage Fund

2. Aditya Birla Sun Life Equity Advantage Fund

Aditya Birla Sun Life Equity Advantage Fund is a Direct Plan, that has given (absolute returns) 16.78% return in the last 1 year, 48.66% return in last 2 years, 57.81% in the last 3 years, and 65.71% return in the last 5 years. This fund has been rated with 3 star by the reputed rating agency, Crisil. SBI Large & Midcap Fund's NAV stood at Rs. 730.37, till last traded. This fund's AUM is Rs. 6008.53 Crore, and the Expense Ratio is 1.06%.

The top 5 holdings of this fund are: ICICI Bank Ltd., Bajaj Finance Ltd., Larsen & Toubro Infotech Ltd. - Computers software, Infosys Ltd. - Computers software, Voltas Limited - Engineering, designing, construction. This fund's Large Cap Investments are 32.03%, Mid Cap Investments are 38.18%, Small Cap Investments are 10.48%, and 18.36% in other funds.

3. HDFC Large and Mid Cap Fund

3. HDFC Large and Mid Cap Fund

HDFC Large and Mid Cap Fund is a Direct Plan, that has given (absolute returns) 17.01% return in the last 1 year, 49.72% return in last 2 years, 55.77% in last 3 years, and 64.70% return in last 5 years. This fund's returns in the past 3 years are considerably good in the peer comparison. This fund has been rated with 3 star by the reputed rating agency, Crisil. SBI Large & Midcap Fund's NAV stood at Rs. 187.07, till last traded. This fund's AUM is Rs. 3519.06 Crore, and the Expense Ratio is 1.38%.

The top 5 holdings of this fund are: ICICI Bank Ltd., Infosys Ltd., State Bank Of India, Reliance Industries Ltd. - Refineries/marketing, Bharat Electronics Ltd. This fund's Large Cap Investments are 38.17%, Mid Cap Investments are 37.51%, Small Cap Investments are 4.83%, and 11.91% in other funds.

4. Canara Robeco Emerging Equities

4. Canara Robeco Emerging Equities

Canara Robeco Emerging Equities is a Direct Plan, that has given (absolute returns) 17.00% return in the last 1 year, 48.46% return in the last 2 years, 60.47% in the last 3 years, and 75.84% return in the last 5 years. This fund has been rated with 3 star by the reputed rating agency, Crisil. SBI Large & Midcap Fund's NAV stood at Rs. 178.77, till last traded. This fund's AUM is Rs. 11734.12 Crore, and the Expense Ratio is 0.63%.

The top 5 holdings of this fund are: ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Axis Bank. This fund's Large Cap Investments are 40.25%, Mid Cap Investments are 29.53%, Small Cap Investments are 5.63%, and 20.42% in other funds.

Performance

Performance

Canara Robeco Emerging Equities has performed the best among these 4 above-mentioned funds, both in terms of long term (5 years), and in short term (1 year). Additionally, the Expense Ratio of this fund is the lowest among all the 4 mentioned funds with the highest AUM, which makes it lucrative. This SIP's fund house is Canara Robeco Mutual Fund. Whenever you are investing in SIPs or mutual fun, you must be patient about the investment tenure. As you should check the fund's previous years' returns, you should also be patient with its potential in the mid to long term.

Disclaimer

Investing in SIPs imposes a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author, are not liable for any losses caused as a result of decisions based on the article.

(Also read: 3 Best SIPs With 5 Star Rating, Those Invest In Large Caps)

(Also read: Buy This Asset Management Stock For 21% Upside In 6 Months: HDFC Securities)

Story first published: Friday, December 24, 2021, 13:12 [IST]
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