All You Ever Wanted to Know About Large Cap Funds and The Top Performing Equity Funds Large Cap in The Market

All You Ever Wanted to Know About Large Cap Funds and The Top Performing Equity Funds Large Cap in The Market

Feb 23, 2018

There is no dearth of mutual funds in the market. But those funds that have a sizable amount of their corpus invested in firms with huge market capitalization are referred to as large cap funds.

Although the criteria for being large cap may vary from company to company, they basically have large market capitalisation. Although large cap equity funds offer sustainable and stable returns, they may sometimes be outdone by small and medium cap funds because of their high exposure to risk.

There are numerous benefits of investing in a large cap mutual fund. But we have dished out here the three most important benefits here. Have a look -

  1. The first and most important benefit is that large cap companies have stability. And that is why they don’t run the risk of lagging behind in the market, which is a risk commonly faced by small and medium cap companies. The only downside is that their stock prices don’t grow as fast as those of small and mid-cap companies do. The majority of large cap companies lead the market.
  2. Since investment in large cap companies are safer, many investors turn to them when there is market downturn. This saves them from going completely out of the market while enabling them to withstand a slowdown.

Investors can earn through dividends. And that is why large cap mutual funds are a great investment avenue for conservative investors. The companies choose to pay dividends because they have this realization that their stock prices won’t witness as fast an appreciation in value as a growth company’s stock prices would.

Although there are many large cap equity fund products available in the market, we have cherry picked the top ten for you. So, let us look at their performances since launch:

Source: Swaraj Wealth Research

The top performer so far is Reliance ETF Shariah BeES, which is an open-ended dividend fund launched on 18th March, 2009, that aims at long term capital appreciation. Because the money remains invested in securities covered by Nifty 50 Shariah Index, the fund got its name. The fund has about 250 crores of asset under management. The since-launch return it offered is 26.83%, which is indeed impressive.

The second in the list is LIC MF Exchange Traded Fund - Nifty 100. This scheme launched on 11-03-2016 has about 275 crores of asset under management and it gave a since-launch return of 23.57%.

The third entry in the list of top performers is Sundaram Smart Nifty 100 Equal Weight Fund - Regular Plan - Growth. This scheme which was launched on 09-01-2017 has been able to offer a return of 23.25% since its advent.

About the fourth best performing fund DSP BlackRock Top 100 Equity Fund - Regular Plam - Growth, we will see that this scheme, having an AUM of 3396.87 crores, which came into existence on 10-03-2003, gave a return of 22.48%.

The fifth best performer is Aditya Birla Sun Life frontline Equity Fund-Growth, launched on 30-08-2002. This scheme has an asset of 18948.38 crores under management and it offered a since-launch return of 22.38%.

The next in queue is HSBC Equity Fund- Growth, a large cap equity fund scheme having an AUM of 641 crores and a return offering of 22.09% since its launch on 10-12-2002.

The seventh top performer, Relaince ETF Nifty BeES, was launched on 28-12-2001. It gave an overall return of 21.94% since its launch.

The next in the chart is Kotak 50-Growth. This scheme offered a return of 21.62% since its advent on 29-12-1998. It has around 1366.62 crores of asset under management.

The second last performer in our list is IDFC Sensex ETF, which was launched on the 30th of September, 2016. The scheme having an AUM of 0.76 crore, has shown a good performnace despite the fact that it’s a new scheme. It has offered a since-launch return of 21.25%.

An overall since-launch return of 20.68% was offered by Franklin India Bluechip Fund - Growth, which is the last entry in the list. This scheme which has an asset of 8316.13 under management came into existence on the 1st of December 1993.

All of these schemes are well-performing and you can choose one for investment according to your personal preferences and financial goals.

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