Large-cap Mutual Funds are those that invest a minimum of 80% of their assets in equity and equity-related instruments of large-cap companies. SEBI defines large-cap companies as top 100 companies in term of market capitalisation.
Large-cap companies are generally well-established businesses. These companies enjoy reliable brand equity, competitive advantage, quality management, strong balance sheet, easy access to various resources, and sustainable business models. Further, such companies enjoy customer loyalty that enables them to generate consistent profits. These factors make them capable of withstanding economic shocks.
Thus, if you are looking to earn steady growth of capital over the long term at a moderately-high risk level, then Large-cap Funds are the most suitable option.
In terms of risk-return parameters, while the returns generated by stocks of these companies may not be very high, they are well capable of containing downside risk during a volatile market environment as compared to smaller-sized peers. Consequently, Large-cap funds should form part of the ‘Core’ portfolio of every investor.
Here is the list of top-performing Large-cap mutual funds in the last one year:
#1 Nippon India Large Cap Fund
Nippon India Large Cap Fund was launched on August 08, 2007. In the last one year Nippon India Large Cap Fund generated an absolute return of 27.9% as compared to 22.4% delivered by its benchmark S&P BSE 100 – TRI and category average of 19.8%.
The fund has Asset Under Management (AUM) of Rs 11,204 crore and an expense ratio of 1.07% (under the Direct plan), as of March 31, 2022. Its Net Asset Value (NAV) as of April 24, 2022 is Rs 54.25.
Table 1: Fund Snapshot – Nippon India Large Cap Fund
Past performance is not an indicator of future returns
Portfolio data as of March 31, 2022
Returns data as of April 24, 2022. Direct Plan – Growth Option considered
(Source: ACE MF)
The fund has invested ~97% of its assets in equities, of which around 80% is in large-caps, 12% in mid-caps, and 5% in small-caps. Its top stock holdings include HDFC Bank, ICICI Bank, Reliance Industries, SBI, and HCL Technologies. In terms of sector, Nippon India Large Cap Fund has a higher allocation to Financials, Infotech, Petroleum, Hotels, and Consumption, among others.
#2 IDBI India Top 100 Equity Fund
IDBI India Top 100 Equity Fund is a small-sized Large-cap Fund that was launched on August 08, 2007. In the last one year IDBI India Top 100 Equity Fund generated an absolute return of 25.5% as compared to 21.8% delivered by its benchmark Nifty 100 – TRI and category average of 19.8%.
The fund has a corpus of Rs 586 crore and an expense ratio of 1.31% (under the Direct plan), as of March 31, 2022. Its NAV as of April 24, 2022 is Rs 42.86.
Table 2: Fund Snapshot – IDBI India Top 100 Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of March 31, 2022
Returns data as of April 24, 2022. Direct Plan – Growth Option considered
(Source: ACE MF)
The fund has invested ~96% of its assets in equities, of which around 80% is in large-caps, 13% in mid-caps, and 3% in small-caps. Its top stock holdings include Reliance Industries, HDFC Bank, ICICI Bank, Infosys, and HDFC Ltd. Financials, Infotech, Petroleum, Auto & Ancillaries, Chemicals, and Pharma, are among the core sectors in IDBI India Top 100 Equity Fund’s portfolio.
HDFC Top 100 Fund is one of the oldest Large Cap Fund that was launched on October 11, 1996. In the last one year HDFC Top 100 Fund generated an absolute return of 25.4% as compared to 21.8% delivered by its benchmark Nifty 100 – TRI and category average of 19.8%.
The fund has a large AUM of Rs 21,178 crore and an expense ratio of 1.19% (under the Direct plan), as of March 31, 2022. Its NAV as of April 24, 2022 is Rs 741.48.
Table 3: Fund Snapshot – HDFC Top 100 Fund
Past performance is not an indicator of future returns
Portfolio data as of March 31, 2022
Returns data as of April 24, 2022. Direct Plan – Growth Option considered
(Source: ACE MF)
The fund has invested ~98% of its assets in equities, of which around 88% is in large-caps, 9% in mid-caps, and a nominal allocation of less than 1% in small-caps. Its top stock holdings include Reliance Industries, ICICI Bank, HDFC Bank, Infosys, and HDFC Ltd. In terms of sector, HDFC Top 100 Fund’s portfolio is skewed towards Financials, followed by Pertroleum, Infotech, Pharma, and Power, among others.
#4 Invesco India Largecap Fund
Invesco India Largecap Fund was launched on August 21, 2009. In the last one year Invesco India Largecap Fund generated an absolute return of 25.1% as compared to 21.8% delivered by its benchmark Nifty 100 – TRI and category average of 19.8%.
The fund has a small AUM of Rs 602 crore and an expense ratio of 0.90% (under the Direct plan), as of March 31, 2022. Its NAV as of April 24, 2022 is Rs 49.12.
Table 4: Fund Snapshot – Invesco India Largecap Fund
Past performance is not an indicator of future returns
Portfolio data as of March 31, 2022
Returns data as of April 24, 2022. Direct Plan – Growth Option considered
(Source: ACE MF)
The fund has invested ~98% of its assets in equities, of which around 83% is in large-caps, and about 7% each in mid-caps and small-caps. Its top stocks holdings include Infosys, Reliance Industries, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. In terms of sector, Invesco India Largecap Fund’s portfolio is diversified across Infotech, Petroleum, Pharma, Auto, Finance, among others.
ICICI Pru Bluechip Fund is one of the largest schemes in the Large Cap Fund category that was launched on May 23, 2008. In the last one year ICICI Pru Bluechip Fund generated an absolute return of 24.4% as compared to 21.8% delivered by its benchmark Nifty 100 – TRI and category average of 19.8%.
The fund has a huge corpus of Rs 31,688 crore and an expense ratio of 1.08% (under the Direct plan), as of March 31, 2022. Its NAV as of April 24, 2022 is Rs 70.
Table 5: Fund Snapshot – ICICI Pru Bluechip Fund
Past performance is not an indicator of future returns
Portfolio data as of March 31, 2022
Returns data as of April 24, 2022. Direct Plan – Growth Option considered
(Source: ACE MF)
The fund has invested 93% of its assets in equities, of which around 85% is in large-caps, about 7% in mid-caps, and less than 1% in small-caps. Its top stocks holdings include ICICI Bank, HDFC Bank, Infosys, Reliance Industries, and Bharti Airtel. In terms of sector, ICICI Pru Bluechip Fund’s portfolio is diversified across Banking & Finance, Infotech, Petroleum, Auto & Auto Ancillaries, Pharma, and Telecom, among others.
To conclude…
It is important to note that past returns do not indicate how the fund will perform in the future. Therefore, to select the best Large-cap Fund analyse the performance of the schemes on various quantitative and qualitative parameters. Click here to know the approach to follow the best mutual fund scheme.
This article first appeared on PersonalFN here
