Investing in large cap mutual funds is a good way to start your investment journey in the stock market. This fund is suitable for those who have less risk appetite and, at the same time, want to invest in the stock market. In this article, we are going to learn about large-cap mutual funds, the benefits of investing in large-cap mutual funds, a list of the best large-cap funds to invest in 2023 and things to consider before investing.
What is a large-cap mutual fund?
Large cap mutual funds invest in companies that have a market capitalization of Rs. 20,000 crores or above. It invests at least 80% of its assets in large-cap companies as per regulatory requirements and the remaining portion of the portfolio may be invested in mid-cap or small-cap companies, debt instruments, or cash, depending on the fund's investment mandate. Large-cap companies have strong financials, are market leaders in their industry and are well-established. They also offer dividends from time to time to their investors for investing in them.
Best large-cap funds
|
Fund Name |
AUM |
1Y Return |
Exp. Ratio |
|
Canara Robeco Bluechip Equity Fund Direct Plan-Growth |
₹9280 Cr |
25.5% |
0.42% |
|
Kotak Bluechip Direct Growth |
₹5858 Cr |
25.1% |
0.54% |
|
Nippon India Large Cap Fund – Direct Plan – Growth Plan |
₹14171 Cr |
35.5% |
0.94% |
|
Edelweiss Large Cap Fund Direct Plan-Growth option |
₹458 Cr |
29.88% |
0.94% |
|
Baroda BNP Paribas Large Cap Fund Direct Plan Growth Option |
₹1420 Cr |
24.6% |
0.96% |
|
ICICI Prudential Bluechip Fund Direct Plan-Growth |
₹37016 Cr |
25.32% |
1.04% |
|
Mirae Asset Large Cap Fund Direct Plan-Growth |
₹34640 Cr |
22.26% |
0.56% |
|
HDFC Top 100 Fund -Direct Plan – Growth Option |
₹23821 Cr |
28.39% |
1.12% |
|
SBI Bluechip Fund Direct-Growth |
₹36876 Cr |
28.83% |
0.89% |
|
PGIM India Large Cap Fund Direct Plan Growth |
₹478 Cr |
26.93% |
0.92% |
Things to keep in mind when investing in large cap mutual funds
- Check the expense ratio and exit load of the funds. Lower expense ratios and exit loads can result in higher profits.
- Large cap funds are suitable for investors who desire equity exposure but have a lower risk tolerance as these funds are known to be less impacted by market risks compared to other fund categories.
- Large cap funds are best suited for long-term investors. Staying invested for a minimum of 5-7 years allows investors to experience the full return potential of the fund
Conclusion
Large cap funds are ideal for wealth creation and achieving long-term financial goals. However, investing in it without having any knowledge can be risky. So make sure to research and analyze past performance before making any mutual funds investment.
