2 Large Cap SIPs For 2022 Based On Rank-1 of CRISIL

Amid the sharp volatility and correction in stock prices, Equity Oriented Schemes received a net flow of Rs. 11,614.73 crore in November, according to data released by the Association of Mutual Funds in India (Amfi) yesterday. Large-cap funds, after flexi caps, have managed to hold the second-highest positive inflow of Rs. 1,624.41 Cr in the previous month among Equity Oriented Schemes. We're talking about large-cap funds here, so first let's get started with your concern: why should we invest?.

Our take

According to the data of AMFI, large-cap funds have recorded the highest number of folios in November 2021, with 1,17,40,508 total. Apart from that, the same fund category's Net Assets Under Management and Average Net Assets Under Management for November 2021 were Rs. 2,14,414.30 Cr and Rs. 2,23,295.22 Cr, respectively. These figures are an indicator of the fund category's long-term success. According to ICRA Ltd's statistics, large-cap funds have returned 31.54 percent in one year, 17.91 percent in three years, and 15.13 percent in five years as of December 9, 2021.

However, while past performance is not the most important factor to consider while investing, we can forecast that large-cap funds will do better in the long run and will be less volatile than mid-cap and small-cap funds. We recommend starting a Systematic Investment Plan (SIP) in large caps for conservative individuals with a 5-years of investment horizon, as the stock markets are overpriced now and may remain volatile in the short to mid-term hence it is not the time to expose your funds to high risk and volatility.

Investors with a 5-year or longer investment horizon can start or continue to hold SIPs in the below discussed large-cap funds with a diversification of flexi cap funds and avoid investing in a lump-sum since this can be the best way to create a substantial corpus in the equity category.

However, remember to rebalance your portfolio depending on market cycles to ensure growth potential and keep your portfolio shining without managing high-risk funds such as small and mid-caps. Here are the three large-cap funds rated No.1 by CRISIL (as of 30th September 2021) which can be good for your portfolio in 2022.

Canara Robeco Bluechip Equity Fund Direct-Growth

This Large Cap mutual fund scheme from Canara Robeco Mutual Fund was founded in the year 2010. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 30.86 percent over the last year. As of November 30, 2021, it has provided an average yearly return of 13.23% since its inception, according to the date of the fund house.

The financial, technology, energy, construction, and automobile sectors account for the majority of the fund's equity allocation. ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., Reliance Industries Ltd., and Housing Development Finance Corpn. Ltd. are the fund's top five holdings. The fund's expense ratio is 0.37 percent, which is comparable to the expense ratios charged by most other funds in the same category. The fund's Net Asset Value (NAV) is Rs. 41.78 as of December 9, 2021, and its AUM is Rs. 5069 Cr as of October 31, 2021.

Period	Canara Robeco Bluechip Equity Fund - Growth	Scheme Benchmark (S&P BSE 100 TRI)	Additional Benchmark (S&P BSE Sensex TRI)
CAGR since Inception	13.23 %	11.86 %	12.05 %
1 Year	30.86 %	33.95 %	30.28 %
3 Year	20.25 %	17.36 %	17.67 %
5 Year	18.12 %	16.84 %	17.80 %
Source: canararobeco.com. Data as of Nov 30 , 2021

Kotak Bluechip Fund Direct-Growth

This fund has been ranked No.1 by CRISIL and also has a 4-star rating by Value Research which is a pretty good sign to invest in a fund compared to other well-known large caps such as IDBI India Top 100 Equity Fund, SBI Blue Chip Fund. The 1-year returns for Kotak Bluechip Fund Direct-Growth are 34.53 percent. According to data from the fund house as of December 9, 2021, it has provided 15.92 percent average yearly returns since its inception. The fund has a major equity allocation across the Financial, Technology, Energy, Construction, FMCG sectors.

ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings. The expense ratio of the fund is 0.83 percent, which is higher than that of most other funds in the large-cap category. The fund's Net Asset Value (NAV) as of December-09 2021, was Rs. 416.308, and its AUM was Rs. 3,456.23 Cr as of October 31, 2021.

Tenors	Since Inception	Last 5 Year	Last 3 Years	Last 1 Year
Kotak Bluechip Fund - Direct (G)	15.92%	17.72%	22.05%	34.53%
Nifty 100 TRI	14.59%	17.36%	19.13%	31.81%
S&P BSE Sensex TRI	14.59%	18.44%	19.45%	28.85%
Source: kotakmf.com. Data as of 09.12.2021

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in