Investors have certain goals that are generally categorised as short, medium, and long term. Instruments handled over a short period of time, often up to three years, are classified as short-term investments. These are products with a high level of liquidity and, as a result, low market risks. Medium-term investments are those with a three to five-year time horizon, which may include funding for a wedding or children's education, and long-term investments are those with a five-year or more investment horizon. These carry higher market risks and, as a result, generate huge returns.
Both Public Provident Fund (PPF) and fixed deposits (FDs) are the most secure bets for a long-term investor with a risk-averse attitude. Large-cap funds, on the other hand, are appropriate for conservative investors. When looking at the average SIP returns of large-cap equity mutual funds over the last ten years, we can discover that they have beaten the historical returns of PPF and FD. So if you are a conservative investor and want to diversify your portfolio, here are the 4 best large cap equity mutual funds for you.
Best Large Cap Equity Funds In Terms of Returns & Rating
|Funds||1 Year Returns||3 Year Returns||5 Year Returns||Value Research Rating|
|Canara Robeco Bluechip Equity Fund||53.74%||18.91%||18.11%||5 star|
|Axis Bluechip Fund||47.14%||16.94%||17.51%||5 star|
|Mirae Asset Large Cap Fund||56.55%||15.50%||16.95%||5 star|
|Kotak Bluechip Fund||59.32%||16.09%||15.12%||4 star|
Canara Robeco Bluechip Equity Fund
This fund, which is a Large Cap mutual fund scheme from Canara Robeco Mutual Fund, presently has an Asset Under Management (AUM) of Rs 2,477 Cr and a NAV of Rs 41.11 as of June 8, 2021. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 53.74 per cent over the last year. The bulk of the capital in the fund is allocated across the financial, technology, construction, energy, and healthcare industries. Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings. The fund has an expense ratio of 0.45% with a 1% exit load, and one can start SIP by making an initial contribution of Rs 1000. Value Research has given this fund a five-star rating, signifying that it has the potential to provide outstanding returns in future.
Axis Bluechip Fund Direct Plan Growth
Axis Bluechip Fund has a current Asset Under Management (AUM) of Rs 25,183 Cr and a current NAV of Rs 45.60 as of June 8, 2021. The fund has a 0.5 per cent cost ratio and has returned 47.14 per cent over the last 1-year. The fund's three and five-year returns are higher than the category average, which can be a positive sign for long-term investors. The fund's equity allocation is diversified across Financial, Technology, Healthcare, Services, FMCG sectors. Infosys Ltd., Bajaj Finance Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd., and Kotak Mahindra Bank Ltd. are the fund's top five holdings. For units worth more than 10% of the deposit, a 1% exit load will be charged if they are redeemed within one year. SIP can be started with a minimum amount of Rs 500. This fund has also been given a five-star rating by Value Research and based on its past record, it can perform well in the long term.
Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund Direct-Growth has Rs 23,993 crores in asset under management (AUM) and a current net asset value (NAV) is Rs 76.08 as of June 8, 2021. The fund's expense ratio is 0.53 per cent, and its 1-year returns are 56.55 per cent. The fund has diversified its equity allocation across Financial, Technology, Energy, FMCG, Healthcare sectors. Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings. SIP can be started in this fund by making a minimum contribution of Rs 1000 and a 1% exit load will be charged if withdrawn within 12 months. Value Research has also granted this fund a five-star rating, which demonstrates the fund's stability in producing returns.
Kotak Bluechip Fund
The 1-year returns for Kotak Bluechip Fund Direct-Growth are 59.32 per cent. According to Value Research, it has provided an average yearly return of 15.24 per cent since its inception. The fund's equity exposure is spread throughout the financial, technology, energy, FMCG, and construction sectors. ICICI Bank Ltd., Reliance Industries Ltd., Infosys Ltd., HDFC Bank Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings. The fund has a 0.92 per cent expense ratio, which is more than other large-cap funds. The fund has a total of Rs 2,411 crore in asset under management (AUM), with a current NAV of Rs 369.67 as of June 8, 2021. The minimum SIP is Rs 100, and units worth more than 10% of the deposit would incur a 1% redemption fee if redeemed within 12 months. Value Research has provided the fund with a four-star rating, indicating that it has a stronger capacity to provide good returns than other funds in the same category.
Should you invest?
According to data from Value Research, large-cap equity funds, for example, have generated an average SIP return of 13.63 per cent over the last ten years which is undoubtedly much higher than that of PPF and even bank FDs. The current interest rate on PPF, on the other side, is 7.1 per cent. The Public Provident Fund (PPF) is one of the finest ways to save for old age. It has generally given higher interest rates than bank fixed deposits. Furthermore, the PPF interest rate is unstable, as the central government adjusts it every quarter. In this case, a diversified equity fund can be a good bet for your portfolio. Because the underlying companies are not strongly influenced by market swings, conservative investors may consider investing in the large-cap funds discussed above. As a result, they are less risky than small and midcap funds. Market risk is also included in large cap funds so before making a selection, investors must examine prior returns, investment purpose, expense ratio, exit load and AUM of the fund.
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