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4 Best Performing Large Cap Mutual Funds To Start SIP In 2021

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Large cap mutual funds are well recognized for their consistent returns and minimal risk, as opposed to small and mid-cap funds, which have a higher risk exposure and suffer the most during market downturns. Large cap mutual funds are nothing but the equity mutual funds that invest in the stocks of top or best 100 companies of India in terms of market capitalization, according to SEBI. In the last 1-year large cap mutual funds have really performed well as most of the funds have generated more than 50% returns. By taking this into consideration, we have picked up 4 best performing large cap mutual funds which are rated 4 to 5 star by Value Research.

Mirae Asset Large Cap Fund Direct Growth

Mirae Asset Large Cap Fund Direct Growth

This scheme was launched by Mirae Asset Mutual Fund in January 2013. Mirae Asset Large Cap Fund Direct has a 1-year growth rate of 52.81 per cent. According to Value Research, it has provided an average yearly return of 18.07 per cent since its inception. The bulk of the capital in the fund is invested in the financial, technology, energy, fast-moving consumer goods, and healthcare sectors.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Axis Bank Ltd. are the fund's top five holdings. The fund's expense ratio is 0.54 per cent, which is comparable to the expense ratio charged by other large cap funds in the category. The current Asset Under Management (AUM) of the fund is Rs 25,721 Cr and the latest NAV as of 5 July 2021 is Rs 77.95. This fund has an exit load of 1% if units redeemed within 1 year of investment and one can start SIP in this fund by Rs 1000.

Canara Robeco Bluechip Equity Fund Direct Growth
 

Canara Robeco Bluechip Equity Fund Direct Growth

Canara Robeco Bluechip Equity Fund Direct-Growth is a large cap scheme of Canara Robeco Mutual Fund that was established in January 2013. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 50.87 percent during the last year. According to Value Research, it has provided an average yearly return of 15.71 percent since its inception. The financial, technology, energy, construction, and automobile sectors account for the majority of the fund's asset allocation.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings. As of July 5, 2021 the fund has an AUM of Rs 2,886 Cr and NAV is Rs 41.93. The fund's expense ratio is 0.44 percent, which is quite close to the expense ratio charged by other large cap funds. The fund charges an exit load of 1% if units are redeemed within 1 year of contribution. With a minimum amount of Rs 1000 one can start SIP in this fund.

Kotak Bluechip Fund Direct Growth

Kotak Bluechip Fund Direct Growth

This scheme was launched in January 2013 by Kotak Mutual Fund. The 1-year returns for Kotak Bluechip Fund Direct-Growth are 54.51 percent. According to Value Research, it has provided an average yearly return of 15.35 percent since its debut. The fund has equity asset allocation across financial, technology, energy, fast-moving consumer goods, and construction 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 fund's expense ratio is 0.92 percent, which is much higher than the other large cap funds. The fund has an asset under management of Rs 2, 642 Cr and NAV as of July 5, 2021 is Rs 376.72. If units in excess of 10% are redeemed within one year of investment, the fund charges a 1% exit load. One can invest in this fund by making a minimum contribution of Rs 1000.

Axis Bluechip Fund Direct Plan Growth

Axis Bluechip Fund Direct Plan Growth

This large cap fund was launched by Axis Bank Mutual Fund in January 2013. Returns for Axis Bluechip Fund Direct Plan-Growth during the last year have been 46.53 percent. According to Value Research, it has produced an average yearly return of 16.99 percent since its debut. The fund has its equity asset allocation across financial, technology, healthcare, services, and fast-moving consumer goods sectors. HDFC Bank Ltd., Infosys Ltd., Bajaj Finance Ltd., ICICI Bank Ltd., and Tata Consultancy Services Ltd. are the fund's top five holdings.

The fund has an expense ratio of 0.5% and a 1% exit load is charged by the fund if units in excess of 10% redeemed within 1 year of investment. The latest NAV as of July 5, 2021 is Rs 46.68 and the fund has an asset under management of Rs 27,142 Cr. One can start investing in this fund by making a minimum SIP of Rs 500.

Best Performing Large Cap Funds

Best Performing Large Cap Funds

Here are the best large cap mutual funds based on returns and rating.

Funds1 Year Returns3 Year Returns5 Year ReturnsRating by Value Research
Mirae Asset Large Cap Fund Direct Growth 52.81% 16.89% 17.19% 5 star
Canara Robeco Bluechip Equity Fund Direct Growth 50.87% 19.50% 18.22% 5 star
Kotak Bluechip Fund Direct Growth 54.51% 17.19% 15.23% 4 star
Axis Bluechip Fund Direct Plan Growth 46.53% 16.84% 17.83% 4 star

Should you invest?

Should you invest?

Large-cap mutual funds are mostly preferred for long-term investors. Let's say investors who have a personal finance goal of 5 years or more, large cap mutual funds are the best to bet. By taking this into consideration, large cap mutual funds have given decent returns if we look at the past returns. According to Value Research, large cap mutual funds have given an average of 16.21% SIP returns over the last 5-years.

The reason why we have taken SIP returns as an example for our readers is that they can watch their investment grow big by making a small amount of contribution. It is suggested that you invest in large cap funds for at least 5 years to get the most out of them. Large cap funds have a relatively high-risk profile, which essentially means that aggressive investors seeking long-term gains may consider investing in them. If you have a low to moderate risk tolerance, you may diversify your portfolio by investing in the top-performing debt funds and equity mutual funds. However, investing in equity mutual funds for the long term is recommended, as these funds may be risky in the short term.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise 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

 

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