When it comes to investing in mutual funds, large-cap funds are considered to be relatively safer options as they invest in companies that are well-established and have a proven track record. Large-cap mutual funds are ideal for investors who are looking for long-term investment options with stable returns.
Best Large Cap Mutual Funds To Invest In India
In this article, we will take a look at the top 10 large-cap mutual funds in India for 2023.
What are mutual funds?
Mutual funds are a type of investment vehicle that pools money from many investors to purchase a portfolio of stocks, bonds, or other securities. These funds are managed by professional fund managers who use the pooled money to invest in a variety of assets with the aim of generating returns for the investors.
When an investor buys units or shares of a mutual fund, they are effectively buying a small portion of the overall portfolio of assets held by the fund. The value of these units or shares changes based on the performance of the underlying assets held by the fund. If the value of the assets held by the fund increases, the value of the units or shares held by the investor also increases.
Mutual funds offer investors a number of advantages, including:
- Professional Management: Mutual funds are managed by experienced investment professionals who have the knowledge and expertise to make informed investment decisions on behalf of the investors.
- Diversification: By investing in a mutual fund, investors gain exposure to a diversified portfolio of assets, which helps to spread out the risk and reduce the impact of any single investment.
- Liquidity: Mutual funds are generally highly liquid, meaning that investors can easily buy or sell their units or shares on any business day.
- Low Minimum Investment: Many mutual funds have low minimum investment requirements, making them accessible to a wide range of investors.
- Transparency: Mutual funds are required to disclose their holdings and other important information to investors on a regular basis, which provides investors with a high level of transparency.
There are many different types of mutual funds, each with its own investment strategy and risk profile. Some common types of mutual funds include:
- Equity Funds: These funds invest primarily in stocks, with the aim of generating long-term capital appreciation.
- Bond Funds: These funds invest primarily in bonds, with the aim of generating income for investors.
- Balanced Funds: These funds invest in a mix of stocks and bonds, with the aim of generating both capital appreciation and income for investors.
- Index Funds: These funds track a specific market index, such as the S&P 500, and aim to replicate the performance of that index.
- Sector Funds: These funds invest in specific sectors of the economy, such as technology or healthcare.
- International Funds: These funds invest in companies outside of the investor’s home country, with the aim of generating exposure to international markets.
Overall, mutual funds can be a useful tool for investors who are looking to gain exposure to a diversified portfolio of assets, while benefiting from the expertise of professional fund managers. However, like any investment, it is important to carefully consider the risks and benefits of investing in mutual funds, and to seek professional advice if necessary.
Axis Bluechip Fund
The Axis Bluechip Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 16.12% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Mirae Asset Large Cap Fund
The Mirae Asset Large Cap Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 18.63% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong growth potential.
SBI Bluechip Fund
The SBI Bluechip Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 15.08% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
HDFC Top 100 Fund
The HDFC Top 100 Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 16.60% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Aditya Birla Sun Life Frontline Equity Fund
The Aditya Birla Sun Life Frontline Equity Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 16.39% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
ICICI Prudential Bluechip Fund
The ICICI Prudential Bluechip Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 15.70% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Kotak Bluechip Fund
The Kotak Bluechip Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 16.26% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Nippon India Large Cap Fund
The Nippon India Large Cap Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 14.55% (as of January 2023) and has consistently out performed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
UTI Mastershare Unit Scheme
The UTI Mastershare Unit Scheme is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 14.44% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Franklin India Bluechip Fund
The Franklin India Bluechip Fund is an open-ended equity scheme that primarily invests in large-cap companies. The fund has a 5-year annualized return of around 15.15% (as of January 2023) and has consistently outperformed its benchmark index. The fund’s portfolio is well-diversified across various sectors, with a focus on companies with strong fundamentals.
Conclusion
Large-cap mutual funds are ideal for investors who are looking for a relatively safer investment option with stable returns. These funds invest in well-established companies that have a proven track record and are known for their strong fundamentals. Investors who are looking to invest in large-cap mutual funds in 2023 can consider any of the above-mentioned funds based on their investment goals and risk appetite. It is important to note that while past performance is not a guarantee of future results, a fund’s track record can be a useful indicator of its potential for generating returns. It is also recommended to consult with a financial advisor before making any investment decisions.