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Top Performing Large Cap Fund Investments for 2022

  • Akshatha Sajumon
  • Apr 05 2022
  • 9 minutes
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Stock markets see many new investors every day and most of them often have questions like, which stocks are the best, where should I invest my money, which stock will give more returns, etc. These questions are best addressed before diving into the stock market world, else it could result in losses. Every stock market investor must aim to gather sufficient knowledge of investment categories, types, strategies, etc before making an investment. 

Stocks are mostly categorised as per their market capitalisation, also known as market cap. Market cap is a reflection of the company’s size. The three main stock classifications according to market cap are large-cap, mid-cap, and small-cap. A company’s size is a crucial factor to be considered while choosing stocks for investment. A large-sized company brings some unique opportunities as they are well established companies and therefore, many investors prefer large-cap fund investments. If you are keen on exploring large cap fund investments, here is all the information you will need to begin with.

What are Large Cap Funds?

Large cap funds are mutual funds that primarily invest in stocks of companies that have large market capitalization. Large cap companies are those which are well-established in the business segment and have a long positive track record. These companies have good corporate-governance and wealth-generation is often a slow and steady process. ​ 

Why invest in Large cap funds?

Since large-sized companies have a steady performance, investors can expect regular dividend payouts. As far as the risk-return is concerned, large-cap funds have mostly steady returns with a lower risk factor as compared to mid-cap and small-cap funds. Here are some features which make large cap funds an ideal investment choice:

  • Large cap funds normally see significant capital growth apart from offering stability to investors. 
  • The investment value of large-cap funds is usually unaffected by frequent market volatility. These offer some level of security to investors as the NAV of such funds is mostly stable.
  • Investors who are looking for diversification with moderate to low risk can opt for large-cap funds.
  • Investors can expect returns in the long term. These are not ideal for investors who are looking for immediate profits.

To help investors in their search for best investment options within large-cap funds, mentioned below are some details on Top-5 large-cap mutual funds in India.

ICICI Prudential Bluechip

About  the fund

ICICI Prudential Bluechip Fund is an open-ended large-cap equity fund that offers growth and stability to investors’ portfolios. The fund aims to provide long-term capital appreciation through an equity portfolio that is mainly invested in large-cap stocks. It focuses on investments in blue-chip stocks which are diversified across various sectors. 

Inception Date

January 01, 2013

Benchmark Name

NIFTY 100 Total Return Index

Fund Manager

Rajat Chandak

Anish Tawakley

Expense ratio

1.09%

Fund type

Open-ended

Risk

Moderately high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

29.90%

20.46%

17.67%

17.18%

15.73%

Axis Blue chip

About Fund

Axis Blue chip Fund is an open-ended large-cap equity scheme designed for investors who aim for capital appreciation in the long run. The objective of the fund is to offer long-term capital appreciation through portfolio diversification comprising equity and related securities of large-cap firms. It also offers portfolio diversification with a combination of equity and equity-related instruments, predominantly focused on large-cap firms.

Inception Date

January 1, 2013

Benchmark Name

S&P BSE 100 Total Return Index

Fund Manager

Shreyash Devalkar

Expense ratio

0.47%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

22.20%

20.24%

20.79%

21.89%

17.09%

UTI Master Share

About  the fund

UTI Master Share fund invests in large market capitalisation companies and follows Growth at Reasonable Price (GARP) investment style. The fund’s objective is to achieve long term capital appreciation through investments predominantly in equity and equity-related securities of large-cap companies. This well-diversified portfolio avoids sector and stock concentration. It has had a positive track record in dividend distribution since its inception. 

Inception Date

January 01, 2013

Benchmark Name

S&P BSE 100 Total Return Index

Fund Manager

Swati Kulkarni

Expense ratio

1.03%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

30.62%

23.76%

20.07%

18.09%

15.13%

Mirae Asset Large Cap

About the fund

This is an open-ended equity fund that predominantly invests across large-cap stocks. The fund aims to achieve long term capital appreciation through investments predominantly in equity and equity-related securities of large-cap companies. It follows a sector and theme agnostic stock selection strategy. It focuses on investment across sector leaders who have a strong competitive advantage. It is suited to investors looking for an investment horizon of at least 3-4 years. 

Inception Date

January 01, 2013

Benchmark Name

NIFTY 100 Total Return Index

Fund Manager

Gaurav Misra

Gaurav Khandelwal

Expense ratio

0.53%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

28.38%

20.52%

18.77%

18.79%

18.04%

Canara Robeco Blue Chip Equity Fund 
About  the fund

This is an open-ended equity fund that predominantly invests across large-cap stocks. The fund aims to generate capital appreciation by predominantly investing in large-cap companies. It follows a sector and theme agnostic stock selection strategy. It focuses on investment across sector leaders who have a strong competitive advantage. It is suited to investors looking for an investment horizon of at least 3-4 years. 

Inception Date

January 02, 2013

Benchmark Name

S&P BSE 100 Total Return Index

Fund Manager

Shridatta Bhandwaldar

Vishal Mishra

Expense ratio

0.36%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

26.52%

24.38%

22.49%

20.86%

15.79%

Edelweiss Large Cap Fund
About  the fund

The objective of the scheme is to provide capital appreciation to investors by establishing and maintaining a portfolio primarily consisting of equity and equity-related securities. It mainly invests in stocks of the 100 largest listed companies as per market capitalization in India.

Inception Date

January 02, 2013

Benchmark Name

NIFTY 100 Total Return Index

Fund Manager

Bharat Lahoti

Bhavesh Jain

Expense ratio

1.09%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

24.86%

20.87%

18.79%

18.58%

15.23%

Kotak Bluechip Fund
About  the fund

The scheme aims to fetch capital appreciation for investors by maintaining an investment portfolio comprising of equity and equity-related securities of large-cap companies. It is suited for investors who have a 3-4 year investment horizon and are expecting high returns from investment. 

Inception Date

January 01, 2013

Benchmark Name

NIFTY 100 Total Return Index

Fund Manager

Harish Krishnan

Expense ratio

0.84%

Fund type

Open-ended

Risk

Very high

Historical Returns of the Fund (annualised)

1-Year

2-Year

3-Year

5-Year

10-Year

29.12%

21.97%

20.33%

18.01%

15.47%


Ways to Invest in Large Cap Funds 

Now, you can easily invest in some of the best large cap funds by using the Finity app. Here are the steps you need to follow:

  1. Download and launch Finity app on your smartphone
  2. Click on Équity on the home screen and select ‘large-cap’ option in the next step
  3. Click on ‘ínvest’ against the chosen fund option from the available list
  4. Select either ‘SIP’ or ‘Lumpsum’ investment and enter the amount
  5. Enter your basic details as shown on app
  6. Follow the payment procedure to begin your investment

Things to Consider Before investing in Large Cap Funds

Large Cap Funds offer steady returns with comparatively lower risk. To gain good returns, investors should consider a five to seven-year horizon while investing in large cap funds. Here are some of the important things to consider before investing in these funds:

  • Large Cap funds are not risk-proof: Large Cap equity funds do have several risks that are mainly market-related. However, these risks are significantly moderate as compared to small-cap or mid-cap funds.
  • Consider the expense ratio: Large Cap funds do have expenses related to fund management. This affects the expense ratio of the fund. Hence, while choosing a fund, look for a lower expense ratio which can help in fetching higher profits.
  • Work better for a longer investment horizon: Large Cap equity funds can fetch good returns in the medium to long run. It makes sense to remain invested for least three to five years in large cap funds so as to get reasonable returns.
  • Are subject to Capital Gains Tax: Large Cap funds are subject to the same tax treatment as any other equity asset. Long term capital gains (LTCG) is applicable for an investment period of more than one year. 

End Note

Large cap funds are ideal for investors who have lower risk tolerance. However, it is important to remember that these too are subject to market risks and investors must carefully assess their investment objectives against the fund objectives before making a decision.


Frequently Asked Questions

What is a large-cap fund?
Large cap funds are equity focussed funds that primarily invest in well-established and top companies which have an excellent performance track record.

Are large cap funds safe investments?

Large cap funds offer relatively higher safety sin
ce they are focused on stocks of large and well-established companies which can withstand market fluctuations in the long run.

What is the meaning of blue-chip funds?
Blue-chip is a term used for financially strong and well-established companies. A fund that invests primarily in blue-chip stocks is known as a blue-chip fund.

How can I invest in a large cap fund?
You can invest in a large cap fund by using the Finity app. The app shows a list of top-performing large cap fund options, which makes the selection process easier.

Why should I invest in a large cap fund?
You can invest in a large cap fund if your investment time horizon is long term. Also, it makes sense to choose this if you have a relatively lower risk appetite.

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