Largecap funds over the last few years have given steady returns, though markets are still a few per centage points from record highs. Here are 4 large cap funds that investors can invest for reaping good returns in the long term.
JM Large Cap Fund
JM Largecap Fund has been rated as 5 star from Crisil. The net asset value under the growth option is close to Rs 70. The returns over a 5 to 7 year period have been good. The 5 year returns has been close to 6 per cent, while the 7 year returns has been 11.90 per cent on an annualized basis.
The portfolio of the fund is sound, which is why the investment option in this fund looks good. The top 5 holdings of JM Large Cap Fund includes names like Reliance Industries, HDFC Bank, Hindustan Unilever, ITC and Infosys.
The minimum SIP investment under the scheme is Rs 500, which is also advisable to go with. For those looking to a slightly higher investment time frame of 5 to 7 years, this is a good bet.
Axis Bluechip Fund
This fund has a 5-star rating from Crisil and Value Research. An investment of Rs 10,000 every month for the last 3 years would have grown to Rs 4 lakhs in the Axis Bluechip Fund. The returns are pretty decent at 9.47 per cent on an annualized basis over the last 3 years and more than 10 per cent over the last 5 years.
The fund invests in only largecap equities and its holdings include names like HDFC Bank, Infosys, Bajaj Finance and Reliance Industries. Investors looking to invest in the Axis Bluechip Fund can do so through an SIP investment of Rs 1,000 per month. Since the launch of the fund in 2010, it has generated a returns of more than 11 per cent on an annualized basis.
Kotak Bluechip Fund
The Kotak Bluechip Fund has been accorded a 4-star rating from Crisil. The fund has generated a 5 year returns of nearly 8 per cent, while the 7 year returns on an annualized basis is nearly 13 per cent. The fund's portfolio includes names like Reliance Industries, HDFC Bank, Infosys, ICICI Bank, TCS, Hindustan Unilever etc.
The SIP is also available through which the minimum amount is Rs 1,000 per month.
BNP Paribas Largecap Fund
This fund too has been rated 4-star by Crisil. The 5-year returns from the fund is close to 8 per cent on an annualized basis. The portfolio of the fund is geared towards offering good returns over the long term.
Almost 98 per cent of the funds are invested in large cap stocks, while the remaining is in cash and equivalents. The NAV under the growth plan is currently Rs 94.25, while the total assets under management are very near to the Rs 850 crores mark.
This fund can continue to generate goodreturns for long term investors.
About the author:
Sunil Fernandes has spent 26 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, mutual funds, debt commodities and tax planning.