The Nifty has shed close to 12 per cent, since hitting record highs of near 12,100 points. Mutual Fund Investors have received very poor returns in the last 1-3 years in most largecap equity funds. However, with the markets having fallen a great deal, it may now be the right time to increase your allocation. Here are 5 largecap equity mutual funds that look good for investment.
Axis Bluechip Fund
Axis Bluechip Fund has a 5-star rating from Value Research Online. The fund manages assets to the tune of nearly Rs 7,000 crores. In line with the poor performance of the markets, the fund has delivered poor returns in the last 1 year. However, the 3-year returns has been decent at 11.45 per cent, while the 5-year returns has been at 9.31 per cent.
This compares very well with some of the other largecap equity mutual fund schemes. Axis Bluechip Fund also has holdings in some good stocks including the likes of Kotak Mahindra Bank, ICICI Bank, HDFC Bank and Bajaj Finance. In fact, its top 4 holdings all comprise companies from the finance space. With the markets trading significantly lower, the scheme has the potential to deliver returns in the long term.
Mirae Asset Largecap Fund
This is another fund that has done remarkably well when compared to most peers. The fund has generated a return of 8.89 over the last 3 years, while the 5 years returns has been near 11 per cent.
The holdings of the fund are also in bluechip names including the likes of HDFC Bank, ICICI Bank and Reliance Industries. One can consider investing through SIPs as well, where the minimum amount one can invest is to the tune of Rs 1,000 every month.
Mirae Asset Largecap Fund has sizeable assets under management in excess of Rs 13,000 crores. Investors looking at decent returns in the medium to long term could consider this largecap fund.
SBI Bluechip Fund
This is another fund like most other funds that have failed to generate returns in a short term period of 1 year. However, in the more medium to long term, it has managed to churn decent returns, not superlative though.
The 3-year returns from the fund has been 4.68 per cent, while the 5 year returns has been closer to 8.35 per cent. While the returns in the last few years has not been that great, this can be attributed largely to the condition of the markets.
The indices themselves have generated poor returns in the last 1 year and are almost stagnant since the start of the year. However, investors who enter the scheme now are getting to enter at significantly lower levels.
Reliance Largecap Fund
This fund has a rating of 5-star from Value Research Online. The fund has generated a 5-year returns of 7.63 per cent, while the three year returns has been 6.51 per cent. The returns are not extra ordinary over the short term and is line with most mutual fund schemes which have failed to churn any great returns over the 3-5 year period and negative returns over the last 1 year. However, because the indices are down near 12 per cent from historic peaks, mutual funds now offer you opportunities.
The minimum investment in the Reliance Large Cap Fund is Rs 100 and one can invest in small sums of Rs 100 every month through SIP. Investors can look to this fund for long term investment.
ICICI Prudential Bluechip Fund
This too is a largecap Fund with a very good holding. The Fund holds shares in HDFC Bank, Infosys, ICICI Bank etc. One can invest through an SIP with a minimum sum of Rs 100. This fund is a very largecap oriented fund with assets under management to the tune of nearly Rs 21,000 crores. Go for the fund for a holding period of less than 5 years.