Top 5 Large Cap Mutual Funds

Top 5 Large Cap Mutual Funds
Top 5 Large Cap Mutual Funds

by 5paisa Research Team Last Updated: 2022-10-20T13:27:09+05:30

You know there are a lot of mutual fund categories and today we are going to speak about one such important category i.e. Large Cap Funds. 

Before we check out the Best Large Cap Funds, let us explain you what is a Large Cap Fund. You would have definitely heard of Reliance, TCS, Infosys & such big companies, right? So, these are the names that have a large market capitalization and falls under large cap category. When we speak about Large cap mutual funds, they usually invest in these companies that are well-known players with a proven record & a strong reputation in the market. 

Now which fund to pick in this category, we have made this easy for you as we've chosen a few of the best performing Large Cap Funds from the market

 

List of Top Large Cap Mutual Funds to invest in 2022

Fund Name 3Y Returns
(as on Oct 19 , 2022)
Min SIP Amt
Canara Robeco Bluechip Equity Fund  18% p.a. Rs.1,000/-
Nippon India Large Cap Fund  18% p.a. Rs.100/-
ICICI Prudential Bluechip Fund  17% p.a. Rs.100/-
UTI Mastershare Fund 17% p.a. Rs.100/-
Kotak Bluechip Fund 17% p.a. Rs.100/-

 

1. Canara Robeco Bluechip Equity Fund

A Equity Mutual Fund Scheme launched by Canara Robeco Mutual Fund and managed by Mr. Shriddata Bhandawaldar. To begin investing, you can start with a minimum SIP of Rs. 1,000 and a lump-sum investment of Rs. 5,000.

2. Nippon India Large Cap Fund

A Equity Mutual Fund Scheme launched by Nippon Mutual Fund and managed by Mr. Sailesh Raj Bhan. Herein, you can start with a minimum SIP of Rs. 100 and a lumpsum investment of Rs. 100 for your first investment.

3. ICICI Prudential Bluechip Fund

A Equity Mutual Fund Scheme launched by ICICI Mutual Fund and managed by Mr. Anish Tawakley. To begin investing, you can start with a minimum SIP of Rs. 100 and a lump-sum investment of Rs. 100.

4. UTI Mastershare Fund

A Equity Mutual Fund Scheme launched by UTI Mutual Fund and managed by Ms. Swati Kulkarni. In this Fund, Starting a SIP and investing a lump sum both require a minimum of just Rs. 100.

5. Kotak Bluechip Fund

A Equity Mutual Fund Scheme launched by Kotak Mutual Fund and managed by Mr. Harish Krishnan. To begin investing, you can start with a minimum SIP of Rs. 100 and a lump-sum investment of Rs. 1,000.

Having said that, let's continue to looking at the taxation, benefits, and other relevant factors that are important in choosing the right Large Cap Mutual Fund.

 

Who must invest in Large Cap Funds?

If you’re someone who wants to invest in Equities but is not ready to have exposure to more volatility then Large Cap Funds can be a suitable option for you. The returns you get are subject to the length of your investment horizon. It is advised that you invest in these funds for at least three to five years to get better returns.

In short, investors that wish to buy leading companies, seek returns that are less volatile, and desire of a strong core portfolio, can include large caps funds in their portfolio. Further, you can prefer Small & Mid Caps if you have higher risk tolerance while investing.

 

What are the key factors to account in while investing?

You can take the following factors into account while investing in large-cap Mutual Funds:

1.Expense Ratio – Like any other Mutual Fund, Large Cap Funds have an expense ratio for proper fund management. Thus, A Lower Expense ratio will be beneficial for your higher take-home earnings.

2. Risk & Reward – The position of Market has an impact on all Equity Mutual Funds. When the market fluctuates, so does your investments. But unlike small- and mid-cap schemes, a large cap's NAV is relatively stable. This means that while investing in large caps funds you will get stability, but the returns on these funds are typically lower than those of small and mid-cap funds. As a result, large cap funds may be a better option for you if you desire stable returns with less risk.

3. Financial Goals – Before making any investments, it's essential to take your financial goals into account. For example, if you need money for a goal that will take five years to complete, you can invest appropriately in large cap funds. If your goal would take one year to complete, you can invest appropriately in liquid funds.

4. Review the past performance – Although Past performance does not guarantee future returns, but it will help you to analyze a fund’s performance over a period in different market cycles.

5. Understand the exit load – Exit load is the charge that you will incur on redemption of your investments before a specific time. Hence, a reduced exit load will help you achieve better returns.

 

How are these Funds Taxed?

The gains from these funds will be taxed to you as per other equity & equity-related instruments only. If you hold this fund for less than a year, the gains will be taxed as Short term capital gains & taxed at a rate of 15% + Cess. On the other hand, Long term Capital Gains will be taxed to you at a rate of 10% + cess & without the benefit of indexation.
Additionally, your long-term gains of up to ₹1 lakh will be tax-free every year!

 

Closing it Up: Is Investing in Large Cap Funds a Good Idea?

Yes! In order to give your portfolio a balance, large caps can be a good choice to be incorporated into every portfolio. Now that you know more about large-cap funds, how they work, the list of top large-cap funds, and the benefits they provide, why wait any longer to invest? But before you invest, don't forget to conduct a quality check with the above-mentioned factors. And lastly, align them with your goals!

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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