10 Best Large Cap Mutual Funds To Invest Your Money [Updated 2022]
What is Portability Of Health Insurance: Rules, Documents, Pros & Cons
14 April 2022
Home Loan Insurance: How To Avail Of Property Insurance For Home Loan
14 April 2022Even if you’re new to investing in mutual funds, you may have come across terms like small-cap, mid-cap and large-cap funds. However, to make an informed decision while investing, it’s necessary to understand what these funds are, how they work, and their benefits. In this blog, we have discussed what large-cap funds are, how large-cap funds work and the best large-cap funds you may consider investing in.
Table of contents
What Are Large Cap Funds?
As per the Securities and Exchange Board of India (SEBI), large-cap mutual funds are an open-ended equity scheme that invests in large-cap stocks. According to SEBI, investors should allocate at least 80% of their total assets to equity shares of large-cap companies.
Also, SEBI defined large-cap companies as organisations ranking between 1 and 100 in terms of market capitalisation. The best large-cap mutual funds have been present in the market for a long time and are known to generate steady returns.
Considering this, here’s an article on the top 10 large-cap mutual funds in India.
Top 10 Large Cap Mutual Funds You Can Consider Investing In
While you are searching for the best large-cap funds to invest in, you must have come across well-established companies with an unmatched performance track record over time. The shares of these companies are also known as blue-chip stocks.
Considering that, find the best blue-chip mutual funds and other large-cap funds to invest in:
| Fund Name | NAV | Expense Ratio | AUM | 3-year Return (Annualised) | 5-year Return (Absolute) |
| Navi Large Cap Equity Fund | Rs.32.82 (as of 22nd April 2022) | 2.56% | Rs.103 crore | 43.16% | 60.08% |
| Canara Robeco Blue Chip Equity Fund | Rs.44.37 (as of 22nd April 2022) | 0.45% | Rs.6647 crore | 19.40% | 16.40% |
| Axis Bluechip Fund | Rs.48.48 (as of 22nd April 2022) | 0.47% | Rs.35702 crore | 16.80% | 16.90% |
| Mirae Asset Large Cap Fund | Rs.83.91 (as of 22nd April 2022) | 0.60% | Rs.31929 crore | 16% | 15% |
| Kotak Bluechip Fund | Rs.402.01 (as of 22nd April 2022) | 0.83% | Rs.4131.79 crore | 17.30% | 14.30% |
| Invesco India Largecap Fund | Rs.49.12 (as of 22nd April 2022) | 0.90% | Rs.601.85 crore | 16% | 14.50% |
| LIC MF Large Cap Fund | Rs.44.02 (as of 22nd April 2022) | 1.28% | Rs.674.32 crore | 16.30% | 13.70% |
| IDFC Large Cap Fund | Rs.53.24 (as of 22nd April 2022 | 1.10% | Rs.1015.86 crore | 15.60% | 13.60% |
| ICICI Prudential Bluechip Fund | Rs.70 (as of 22nd April 2022 | 1.08% | Rs.31688.43 crore | 16.20% | 14.50% |
| UTI Mastershare Fund | Rs.204.57 (as of 22nd April 2022 | 1.13% | Rs.9848.89 crore | 16.70% | 14.40% |
*Note that this table is for educational purposes only.
**Mutual Fund investments are subject to market risk. Read scheme-related documents carefully before investing.
Also read: What is an expense ratio and how it affects mutual fund returns
Who Should Invest in Best Large Cap Mutual Funds?
Investing in the best large-cap mutual funds could be a safer bet than investing in small-cap funds, primarily due to the risk factor. Irrespective of that, you should invest keeping these factors in mind – your goal, risk appetite and investment horizon. Here are a few pointers that could be considered by investors looking to put their money in large-cap mutual funds.
Also Read: A guide to invest in best large and small-cap funds
Investors who are Starting Out in their Investment Journey
The top companies in India are well-established and reliable compared to other companies in the market. By investing in a large-cap fund, you become a part-owner of these companies. Since these companies have a high reputation in the market, the risk involved is relatively moderate.
Individuals Looking for Steady Returns
Large-cap companies across various sectors have robust business models, solid supply chains, and considerable market share. Therefore, these can withstand market fluctuations better than mid-cap or small-cap companies.
Investors Prefer a Solid Core Portfolio
It is ideal to have large-cap funds as a core part of your portfolio because of their ability to generate steady returns owing to relatively lower price fluctuations.
For investors who are seeking equity exposure with lower financial risk, an index fund, for example, the Navi Nifty 50 Index Fund might be an option worth considering. This fund invests in the top 50 companies of India and aims to fetch you steady returns throughout your investment journey.
How to Evaluate Best Large Cap Mutual Funds?
You need to consider certain financial ratios to evaluate these mutual funds. They are as follows:
1. Sharpe Ratio
This measures the risk-adjusted return of a mutual fund scheme. You can use this formula to compute it:
Sharpe ratio = (Mean portfolio return-Risk free rate)/Standard deviation of portfolio return.
2. Standard Deviation
By using standard deviation, you can measure the deviation of a set of data from its mean or average.
3. Beta
This indicates a fund’s changes to the correlated market movements.
4. R-squared
It determines how close a fund’s returns are to that of the benchmark index.
5. Alpha
This measures a fund manager’s ability to generate profits when the benchmark is at a profit.
Also read: A guide to index fund: Should you invest in index funds?
Final Word
Large-cap mutual funds come with decent returns and relatively lower risks. These funds can be a nice stepping stone to your investment journey. However, to grow your money significantly in the long run, diversify your investments. But make sure you have done a thorough research of the market so that you can invest diligently at minimal risk.
If you want to unlock the power of passive investing, visit Navi Mutual Fund and explore a host of mutual funds.
FAQs on Best Large Cap Mutual Funds
Ans: The different types of stocks are as follows:
Small-cap stocks: Equity shares of companies that have a market capitalisation of less than Rs. 5,000 crore.
Mid-cap stocks: Equity shares of companies whose market capitalisation ranges from Rs.5000 crore up to Rs.7000 crore.
Large-cap stocks: Equity shares of companies whose market capitalisation ranges from Rs.7000 crore to Rs.20000 crore.
Ans: The investment horizon of individuals depends on their financial goals. That said, one might want to stay invested for as long as possible to benefit from the power of compounding.
Ans: Large-cap mutual funds are comparatively safer than other equity investments because they can withstand falling markets. Also, individuals with a long-term investment horizon can expect stable returns.
Ans: As large-cap funds invest in equity and equity-related instruments, they are affected by market fluctuations. However, they are less risky than other equity funds because they invest in companies with an outstanding track record.
Ans: Large-cap funds come with stable returns but have less growth potential due to the size of the companies. That said, mid-cap and small-cap funds can offer higher returns. Furthermore, they have better growth potential.
Before you go…
- Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Install the Navi app on Android or iOS now!
- Or, maybe you’re looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to Rs. 10 crores. Install the Navi app on Android or iOS now and get instant in-principle approval right away! Interest rates starting at 6.71% p.a.
- How about an affordable health insurance policy 👨⚕️ starting at a monthly premium of just Rs. 241? Install the Navi app on Android or iOS now and get your policy in under 2 minutes.
Instead, want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
