The large-cap fund invests in large-cap companies which have larger market capitalization. These large-cap companies have a track record of steady wealth generation with low risks. People with a low-risk appetite can easily invest in a large-cap fund. One of the best features of the large-cap fund is that they can easily manage the market fluctuation. So, the return does not very rigorously in accordance with market volatility.
To make your investment decision easier, here is the list of top 10 large-cap funds in 2019.
|Name of the fund||Launch Date||1-year return (%)||3-year return (%)||5-year return (%)||10-year return (%)||Expense ratio (%)||AUM (cr.)||Return Since Launch (%)|
|Axis Bluechip Fund||Jan 5, 2010||5.76||13.19||14.75||–||2.3||3,737||11.55|
|Aditya Birla Sun Life Focused Equity Fund||Oct 24, 2005||-5.45||11.06||15||17.18||2.03||4,043||13.94|
|SBI Bluechip Fund||Feb 14, 2006||-5.22||10.39||15.86||17.39||1.98||20,610||10.69|
|Edelweiss Large-cap Fund||May 20, 2009||-0.39||11.51||13.78||–||1.63||140||13.3|
|Kotak Bluechip Fund||Dec 29, 1998||-3.43||10.5||14.21||14.74||2.23||1,352||18.43|
|Reliance Large-cap Fund||Aug 8, 2007||-0.62||13.86||17.93||17.58||2.24||11,740||11.15|
|ICICI Prudential Bluechip Fund||May 23, 2008||-1.7||13.59||15.08||18.96||1.96||20,115||14.01|
|IDFC Large-cap Fund||Jun 9, 2006||-4.7||12.3||11.24||13.92||2.74||386||9.36|
|HSBC Large-cap Equity Fund||Dec 10, 2002||-4.09||12.4||12.72||12.83||2.5||687||20.33|
|Motilal Oswal Focused 25 Fund||May 13, 2013||-5.05||9.88||14.63||–||2.12||1,097||13.58|
*Details as on Jan 11, 2019
Parameters you must check before investing in large-cap funds
Large-cap funds yield stable return with moderate risk. But before investing, you must keep in mind your risk appetite, your expected investment horizon and much more.
Below are some of the important parameters that you must check before investing in large-cap funds.
- Investment goal- The basic thing that you should keep in mind is your investment goal. The reason for your investment. Now check whether the fund objective is in sync with your investment goal. The fund management pattern must match to your investment goal.
- Fund Performance- In order to get the best return, you should keep a track of the performance of the fund for the last 5-10 years. Don’t decide to invest depending on the fund performance of the last 1-2 years. The fund must perform consistently in both the bearish and bullish market for a time period of 5-10 years.
- Experience of the fund manager- Mutual fund investment is managed by experienced fund managers. The performance of the fund is dependent on the fund manager. So, the fund manager must be highly experienced and should have the expertise to manage the fund in the best possible way.
- Expense Ratio- To manage the invested money in the mutual fund, a certain amount is charged, commonly known as Expense Ratio. The expense ratio includes- the amount charged by respective mutual fund houses, brokerage fees etc. So, along with the return and risk, consider the expense ratio of the fund.
- Exit Load- It is the cost that you bear when you decide to sell your mutual fund units. The exit load is a part or fraction of the NAV (Net Asset Value) that you will receive. So, the best case scenario will be a lower exit load.