Mutual funds offer a good exposure to equity markets putting in investors' money across securities and even asset classes, thereby moderating risk. Long term investment in assets is always rewarding and same goes with mutual funds. Now, even as markets are at record high, experts are of the view that currently there is no reason for long term investors to be worried now and going ahead the Indian economy will grow faster than pre-covid rates owing to structural reasons.
So, here we lists top performing large cap equity funds based on 5-year annualized return which you can consider investment into:
1. Nippon India ETF NV 20:
This is an Open Ended Index Exchange Traded Scheme in existence since 2015 from the house of Nippon India Mutual fund. The equity large cap fund aims to offer return corresponding to the overall returns of the securities as represented by the Nifty 50 Value 20 Index. Latest NAV of the scheme as on August 13, 2021 is 93.31. You can initiate an investment into the fund by deploying a minimum of Rs. 5000.
Risk-o-meter has placed the fund under the very high risk category. The ETF commands an asset size of Rs. 37 crore as on July 31, 2021, while the expense ratio is 0.36%.
The fund's portfolio comprises stocks including L&T, Infosys, TCS, HUL, ITC, Wipro, HCL and Sun Pharma among others. Mr. Mehul Dama has been managing the fund since November 2018.
2. Kotak NV 20 ETF:
This is an open-ended large cap equity scheme from the stable of Kotak Mahindra Mutual fund house. Again launched in the year 2015, the scheme since inception has offered 18.79% return. The scheme is benchmarked against Nifty 50 Value 20 TRI. It is again a very high risk plan. NAV of the fund as on August 13 was 92.225.
The ETF commands a very low fund size of Rs, 25.39 crore, while it attracts an expense ratio of 0.14%.
Minimum investment in the scheme can be made for Rs. 5000, with minimum additional investment amount of Rs. 1000. Ideal investment in the fund should be for 5 years and more.
The scheme's funds are majorly invested into technology and financial scrips, followed by FMCG, construction and energy verticals among others. Top holdings of the fund include TCS, Infosys, HUL, L&T, ITC, HCL, Wipro, Sun Pharma etc.
3. ICICI Prudential NV20 ETF:
Launched in 2016, this is an open ended ETF which tracks Nifty 50 Value 20 Index. Last NAV of the fund is 90.53. The mutual fund risk-o-meter classifies the fund to be moderately high on risk. The large cap oriented fund since inception has yielded return to the tune of 19.17%.
The scheme is primarily suitable for investors looking at long term wealth creation solution. The scheme has delivered the best yearly performance between March 2020 and March 2021 with return of over 92%.
It is again a scheme with major allocation in technology, financials and FMCG sectors among others. Mr. Kayzad Eghlim has been managing the scheme since inception.
4. Axis Bluechip Fund:
It is a CRISIL 4-Star and Value Research 5-Star rated large cap fund. An 11 year old fund since inception has offered return of over 13.5% and tracks Nifty 50 TRI. The assets under the scheme as on July 31, 2021 are Rs. 29,161 crore, while the fund carries an expense of 1.76%.
Prime exposure of the fund is in equity and equity related securities of large cap companies including derivatives. The fund has a minimal exposure in even midcap stocks.
The benefit of investing in these bluechip funds is their exposure to large cap stocks which offers both high liquidity and at the same time is less volatile. The scheme aims to outperform the benchmark with risk lower than the benchmark. By deploying your funds into this scheme you can plan long term financial goals such as retirement, saving for children's education, future etc.
You can invest in the scheme with a minimum sum of Rs. 500 as a SIP plan. Top stock holdings of the fund include Infosys, Bajaj Finance, HDFC Bank, ICICI Bank, TCS, Avenue Supermarts etc.
5. Canara Robeco Bluechip Equity:
Accorded the highest 5-Star rating by both Value Research and CRISIL, Canara Robeco Bluechip Equity is a large cap fund-equity scheme. NAV of the fund as on August 13 is 39.9. The scheme aims to offer capital growth by primarily investing in companies with a large market capitalization. Since launch in the year 2010, the fund has offered return of 13.42%.
The scheme's performance is benchmarked against S&P BSE 100 TRI. The bluechip equity fund is a high risk plan with exposure to large cap and apart from that it has some minor allocation in mid-cap stocks and debt.
SIP investment in the scheme can be started with Rs. 1000, while for lump sum investment you need to put Rs. 5000.
Top holdings of the fund are in stocks including Infosys, HDFC Bank, ICICI Bank, RIL, TCS, L&T and HDFC among others.
Top 5 Large Cap Equity Mutual Funds To Invest In Based On 5-Yr Returns
|Equity-Large cap fund||Launch date||5-year return||Expense Ratio||Assets|
|Nippon India ETF NV 20||2015-06-01||19.33%||0.36%||Rs. 37 crore as on July 31, 2021|
|Kotak NV 20 ETF||2015-12-01||19.13%||0.14%||Rs. 25 crore|
|ICICI Prudential NV20 ETF||2016-06-01||18.96%||0.15%||Rs. 17 crore|
|Axis Bluechip Fund||2010||16.93%||1.76%||Rs. 29,161 crore|
|Canara Robeco Bluechip Equity||2010||16.57%||1.96%||Rs. 3691 crore|
Mutual fund investments are subject to market risk. Markets are at record high, so investors need to be even more careful with their investments. Further, mutual funds listed out here should not be construed as investment advice and is for informational purpose only.