“Cap” means Company as the name suggested Large Cap Mutual Funds are open-ended equity scheme which invests 80% of its assets in the share and stock of large companies. Large Cap funds come with lesser risk than the small-cap or mid-cap funds. Choosing the right mutual fund is not easy but if you follow you can choose the best large-cap mutual funds to invest in 2019. Here we will provide a list of top large-cap mutual funds in India to invest in. If that Large-cap fund is performing well and giving a consistent return over the year the fund can be in the list of top-performing large-cap mutual funds. You also can invest in mutual funds through SIP so you also can find the best large-cap mutual funds for SIP.
How to choose the best large-cap mutual funds to invest in 2019?
- Performance and risk analysis
Before you invest in mutual fund you should analyze the performance and returns of that mutual fund. You must check if the fund is giving a regular risk-adjusted stable return or not. If a fund is giving a high return that doesn’t always mean that fund will be worth of best large-cap mutual funds to invest in 2019. You must check if the fund has given regular return at least for five years. The rolling returns of that large-cap fund also should be checked for periods such as one year, three years and five years. You also have to check on risk-reward ratios like sharp ratio, Sortino ratio, and standard deviation over a 3 year period. Also, you must check the return since launch.
- A calculation to check for the consistency in the last three years
“H” is used for calculating the consistency of fund. The full form of “H” is Hurst Exponent. To measure the randomness of NAV series of a fund the “H” is an exponent. If a fund has high “H” that fund tends to exhibit low volatility compared to funds with low “H”.
- If “H” = 0.5, the return of that series is said to be a geometric Brownian time series. These types of series are difficult to forecast.
- If the “H” is less than 0.5, the series is called to be mean-reverting.
- If the “H” is greater than 0.5 the series is called to be persistent. The larger the value of “H” the stronger will be the trend of the series.
Benchmark is one of the important things, so if you are investing in a mutual fund you should check the benchmark of that particular fund. If that fund you are investing in has crossed the benchmark or not and if it is performing under its benchmark that fund is a big negative for your best large-cap mutual funds to invest in 2019.
- Fund Portfolio
You must check the portfolio of that fund you are planning to invest. Must check if that fund has a well-diversified portfolio or not. The exposure to the top 10 holdings of the fund should be ideally under 50 %.
- Expense Ratio
Also, important things before you opt for the best large-cap mutual funds to invest in 2019 are the expense ratio. The expense ratio of a fund should not cross more than 3% if you are seeing anything like this I think you should consider your decision before you invest in that fund
Top Large-Cap Mutual Funds to Invest in 2019
|Name of that Fund||Launch date||Three years||Five Years||Ten Years||Return since launch|
|Reliance Large Cap Fund||8th August 2007||10.77%||11.09%||12.52%||10.20%|
|ICICI Prudential Bluechip Fund||23rd May 2008||9.41%||10.05%||13.65%||13.56%|
|Axis Bluechip Fund||5th January 2010||12.31%||10.97%||–||11.62%|
|SBI Bluechip Fund||14th February 2006||6.98%||10.82%||12.09%||10.55%|
|HDFC Top 100 Fund||11th October 1996||10.61%||9.38%||12.18%||19.65%|