Since Jan 2021, the markets have done pretty well, with the Sensex breaching the 53,000 points mark again. Here are 5 large cap funds that have given the best returns year to date or since Jan 1, 2021. We have not taken the same funds with a different payout or the same fund with a regular and direct plan. We have chosen different mutual fund schemes for the purpose. All of these funds are not well rated by some of the leading agencies that conduct research, therefore we are not suggesting to invest.
Franklin India Bluechip Fund
This fund according to research agency Morningstar has given a returns of 23.40% since the start of the year, making it the best mutual fund in terms of returns since Jan 1, 2021. This is only for mutual funds in the largecap category. Franklin India Bluechip Fund tends to invest in a range of companies, with a bias towards large cap companies. The longer term returns from the fund are 13.44% on an annualized basis for 3-years and 11.12% on an annualized basis for 5-years.
It's important to understand that we are just providing information on best returns since Jan 1, 2021 and are not recommending any of these funds. An SIP can be started under Franklin India Bluechip Fund with a small sum of Rs 1,000 every month.
Tata Large Cap Fund
According to research from Morningstar this is the fund that has taken the second position from among largecap stock schemes for highest returns since the start of the year. It has given a year to date returns of 20.87%. This fund tends to invest in largecap bluechip companies. Again, we are just providing information and not suggesting to invest by any chance.
Interestingly, an SIP is also possible in the fund with a sum of just Rs 150 per month. The Tata Large Cap Fund is not a very big fund in the sense the assets under management is less than Rs 1,000 crores. The 3-year returns are 12.6%, while the 5-year returns are 11.91%. Tata Large Cap Fund has invested in stocks like ICICI Bank, HDFC Bank etc.
Mahindra Manulife Large Cap Pragati Yojana
With returns of 19.38% since Jan 1, 2021, this fund has been ranked No 3 in ratings for year to date returns by Morningstar in the largecap category. This fund is a new fund launched only in 2019 and hence it is not possible to analyze the long term returns etc. The fund is very small and has assets under management of only Rs 123 crores. It has holdings in stocks like Infosys, ICICI Bank and Relaince Industries.
An SIP is possible in the fund with a sum of Rs 1,000 every month.
Nippon India Large Cap Fund
Again, like peers mentioned above this is a largecap fund which invests in the biggest listed companies in the business. The fund is ranked fourth in terms of year to date returns of 18.86%.
Interestingly, one can start an investment with a small sum of Rs 100 and the minimum investment required is also Rs 100. The 3-year returns is almost 13.5% on an annualized basis, which is in line with how the markets have also performed over the years. However, the fund has only been accorded a 2-star rating from Value Research. We wish to emphasize the fact that the Sensex at near 53,000 points is at a new record and any large scale exposure to largecap equity mutual funds could erode wealth should the markets fall dramatically from these levels. It's hence more prudent to invest, if you want to through the SIP mode.
IDBI India Top 100 Equity Fund
This is another largecap fund with year to date returns of 18.21%. The fund is a large cap fund with exposure to stocks like Reliance Industries, HDFC Bank, Infosys and ICICI Bank. We do not suggest investing in any of the funds mentioned above as the markets have gone up sharply. As such you can consider SIPs which is a better option against wild market fluctuations.
Investing in equity mutual funds is risky, so investors need to be cautious. Neither Greynium Information technologies nor the author would be responsible for any losses incurred due to a decision based on the above articles Please consult a professional advisor and remember the markets have run-up sharply.