The right time to buy in the markets, is when the chips are down. If you ask mutual fund investors, if they have generated returns in the last three years in stocks, their answer would be just "subdued returns".
With the indices down almost 10 per cent from peaks, now would be the right time to buy into large equity mutual fund schemes. Here are 6 large cap equity mutual fund schemes to buy in a distressed market.
Mirae Asset Large Cap Fund
This fund has a rating of 5-star by Value Research and rightly so. The returns over the last three and five years has been much better than some peers.
In fact, the 5-year returns at 12.56 per cent on an average each year is not bad at all. The expense ratio at 1.76 per cent also compares well against some peers. The fund has holdings in bluechips like HDFC Bank, ICICI Bank and Reliance Industries.
The fund has assets under management of nearly Rs 13,600 crores. Given the past track record of the fund and its strong holdings, it is in a position to deliver strong returns, in case of a market upside. If you are looking to invest from a 3-4 year perspective, this large cap fund would not be a bad bet.
Axis Bluechip Fund
Among all the largecap funds, Axis Bluechip Fund and Mirae Asset Large Cap Fund have generated superior returns over a period of 5 years, when compared to some other large peers.
Axis Bluechip Fund has delivered returns over a 5-year period of 11.72 per cent, which is pretty decent.
Currently, if you are looking to invest, you can buy the same at a net asset value of Rs 28.69, under the growth plan. Investors with a long term view can position themselves in this fund. Among the top holdings of the fund include names like HDFC Bank, Bajaj Finance, Kotak Mahindra Bank, Tata Consultancy Services etc. The minimum investment in the fund is Rs 5,000 and one can thereafter invest through an SIP of Rs 1,000 as well.
SBI Bluechip Fund
With the indices having fallen close to 10 per cent, it gives an opportunity to buy SBI Bluechip Fund at a much lower NAV, than anytime since the start of the year.
SBI Bluechip Fund like most large cap equity funds has generated very subdued returns in the last one year. However, its portfolio continues to have stocks that have the potential to generate solid returns in the medium term.
Its largest holding is in HDFC Bank, followed by ICICI Bank and L&T all of which can churn impressive returns.
SBI Bluechip Fund itself has given returns of nearly 10.33 per cent over the last 10 years. The returns of the fund has been very tepid at 5.29 per cent over the last three years.
The current net asset value of the fund is Rs 37.36 under the growth plan.
Reliance Large Cap Fund
This is another fund that has generated good returns over the longer term, while in the more short term, in line with the markets the returns are very poor.
Value Research online has accorded this largecap fund a 5-star rating. The assets under management is about Rs 13,000 crores.
Without doubt, the fund has holdings in some solid largecap stocks including the likes of State Bank of India, ICICI Bank, Larsen and Toubro, ITC and Axis Bank. If you are looking to buy into the growth plan of the fund, you would have to be buying at a net asset value of Rs 31.91.
ICICI Prudential Bluechip Fund
This is another fund that has generated decent returns in the last 5 years, while the returns in the short term has been more tepid.
The fund has holdings in some very bluechip names including the likes of HDFC Bank, ICICI Bank, Infosys, Bharti Airtel and NTPC.
The net asset value of the fund under its growth plan is Rs 39.9. One can invest in the fund through the Systematic Investment Plan(SIP) route of a small amount of Rs 100.
If you are looking to buy into 5 mutual fund schemes mentioned above please seek professional advise. The above article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information and advise in this article.