This Best Rated Bluechip Mutual Fund Given Upto 95% Return: Crisil Rated

Mutual funds and SIP have started to gain momentum in India since 2020, aggressively as investors have realized the potential of this portfolio. Investors who do not want to take risks in the stocks directly can diversify their equity investments through mutual funds and SIP. Thus, an investor can have footsteps in multiple stocks, from different sectors.

Large Cap Fund SIP investment rationale

The Large Cap mutual funds invest among the top 100 stocks, based on the market capitalization of the companies. It means stocks that market capitalization value of above $10 billion. The fund houses select the stocks based on the previous years' returns, AUM, etc. of the stocks. Investment in the large-cap of bluechip funds is mostly preferred by investors who have a lesser risk appetite and the new investors. Bluechip investments generally offer more assurance and security about the fund's return and liquidity. On the other hand, small-cap funds are popular for aggressive returns. The large-cap funds perform the best in long term. So, investors are recommended to hold a portfolio in a large cap fund for around 5 years.

IDBI India Top 100 Equity Fund - Direct Plan - Growth

IDBI India Top 100 Equity Fund - Direct Plan is a mutual fund SIP investment that has a NAV of Rs. 43.46, and the size (AUM) of this fund is Rs. 554.48 crore. But, the Expense Ratio (ER) of this fund is 1.32%, while the category average is 1.12%. The ER is marginally higher than the category average, which can affect profitability. The Expense Ratio is the percentage, which the fund house will use from the retail investors' investments, for fund management purposes.

This mutual fund SIP has been best rated with 5 Star by reputed rating agency Crisil.

Absolute and annualized returns

As it is a Large Cap Fund, its absolute returns from SIPs have been reported higher in the long term. In the last 1-year SIP return stood at 7.89%, in the last 2 years it has fetched 34.02% returns, in the last 3 years it has given 44.34% returns, in the last 5 years, it has fetched 57.82% returns. Annualized returns from IDBI India Top 100 Equity Fund - Direct Plan's SIP were 31.0% in the past 2 years, and 25.34% in the past 3 years.

IDBI India Top 100 Equity Fund - Direct Plan's absolute mutual fund returns are the highest in 5 years terms. In the last 1 year return stood at 25.32%, in the last 2 years it has fetched 105.19% returns, in the last 3 years it has given 70.56% returns, and in the last 5 years, it has given 95.24% returns. In the past 2 years, the IDBI India Top 100 Equity Fund - Direct Plan's annualized returns stood at 43.25%, outperforming the category average of 40.11%.

(Data till March 31, 2022)

Portfolio

IDBI India Top 100 Equity Fund - Direct Plan's total equity holding is 96.82%, and the rest of the 3.16% is invested in other sectors. Among the total of 64 stocks, the Fund's Large Cap Investments are 69.31%, Mid Cap Investments are 10.86%, Small Cap Investments are 5.36%, and 11.29% investments are allocated to other funds.

The top 10 equity holdings of the fund are Reliance Industries Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Housing Development Finance Corporation Ltd., Tata Consultancy Services Ltd., Axis Bank Ltd., State Bank Of India, Kotak Mahindra Bank Ltd., and Larsen & Toubro Ltd. Additionally, this fund's Portfolio Turnover Ratio is 34.00%.

Other funds under this category are, Invesco India Large-cap Fund - Direct Plan - Growth, LIC MF Large Cap Fund - Direct Plan - Growth, UTI Mastershare Unit Scheme - Direct Plan - Growth, etc.

(Also read: This Large and Mid Cap Fund, 5 Star Rated By Crisil, Marked Upto 73% SIP Return)

Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.