Equity mutual funds are currently showing poor returns over 1 and 3 year time period, thanks to the sharp fall in the stock markets, following the Covid-19 outbreak. Here are a few largecap funds that have the potential to generate good returns over the medium to long term. We have taken into consideration the ratings from Crisil, the portfolio and past track record.
1. Axis Bluechip Fund Growth
This fund has generated 3 and 5 year returns that are much better than almost all of its peers. The 3-year annualized returns from the fund is 9.35 per cent, while the 5-year returns is 8.76 per cent. The fund has been accorded a 5-star rating from Crisil.
One can invest in the fund through the SIP route as well for a small sum of Rs 500 each month. Axis Bluechip Fund Growth has a good portfolio that comprises stocks like HDFC Bank, Avenue Supermarket, Infosys, Kotak Mahindra Bank and Bharti Airtel as among its top 5 holdings.
The SIP returns over a 5-year period have been more than 9 per cent. A good investment for those looking at an investment horizon of 5-years or so.
2. JM Largecap Fund – Growth
This fund too has been accorded a 5-star rating from Crisil. The annualized 5-year returns is 4 per cent, which is low, but, has largely to do with the fall in the markets. Like Axis Mutual Fund the portfolio is solid and comprises names like HDFC, Reliance Industries, Hindustan Unilever and ICICI Bank.
Almost 81 per cent of the holdings of the fund is in equity shares, with largecap accounting for almost 75 per cent. The current net asset value of the fund is Rs 67.66. Investors with a long term perspective can invest in the fund. It's important to remember that the markets are currently very volatile and if you have an appetite for risk only then you should consider equity mutual funds.
3. Canara Robeco Bluechip Equity Fund - Growth
This is another fund that is rated well by Crisil and in fact has a 5-star rating as well. Canara Robeco Bluechip Equity Fund has generated an annualized returns of 7.47 per cent over three years and an annualized returns of 7.92 per cent over the last 5-years.
If you had to invest in the fund a sum of Rs 1 lakh, it would have generated about Rs 1.23 lakhs currently. The fund has holdings in names like HDFC Bank, Reliance Industries, Infosys, ICICI Bank and Bharti Airtel. The current NAV under the growth plan is Rs 25.99. A good investment for those looking to invest for a time frame of 3-5 years. It's important to remember that mutual funds are risky investments, with no guarantee of returns.
About the author:
Sunil Fernandes has spent 25 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, debt instruments, mutual funds and tax planning.