Month: July 2021

Mirae Asset Large Cap Fund Direct Growth

This scheme was launched by Mirae Asset Mutual Fund in January 2013. Mirae Asset Large Cap Fund Direct has a 1-year growth rate of 52.81 per cent. According to Value Research, it has provided an average yearly return of 18.07 per cent since its inception. The bulk of the capital in the fund is invested in the financial, technology, energy, fast-moving consumer goods, and healthcare sectors.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Axis Bank Ltd. are the fund’s top five holdings. The fund’s expense ratio is 0.54 per cent, which is comparable to the expense ratio charged by other large cap funds in the category. The current Asset Under Management (AUM) of the fund is Rs 25,721 Cr and the latest NAV as of 5 July 2021 is Rs 77.95. This fund has an exit load of 1% if units redeemed within 1 year of investment and one can start SIP in this fund by Rs 1000.

Canara Robeco Bluechip Equity Fund Direct Growth

Canara Robeco Bluechip Equity Fund Direct-Growth is a large cap scheme of Canara Robeco Mutual Fund that was established in January 2013. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 50.87 percent during the last year. According to Value Research, it has provided an average yearly return of 15.71 percent since its inception. The financial, technology, energy, construction, and automobile sectors account for the majority of the fund’s asset allocation.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings. As of July 5, 2021 the fund has an AUM of Rs 2,886 Cr and NAV is Rs 41.93. The fund’s expense ratio is 0.44 percent, which is quite close to the expense ratio charged by other large cap funds. The fund charges an exit load of 1% if units are redeemed within 1 year of contribution. With a minimum amount of Rs 1000 one can start SIP in this fund.

Kotak Bluechip Fund Direct Growth

This scheme was launched in January 2013 by Kotak Mutual Fund. The 1-year returns for Kotak Bluechip Fund Direct-Growth are 54.51 percent. According to Value Research, it has provided an average yearly return of 15.35 percent since its debut. The fund has equity asset allocation across financial, technology, energy, fast-moving consumer goods, and construction sectors. ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings.

The fund’s expense ratio is 0.92 percent, which is much higher than the other large cap funds. The fund has an asset under management of Rs 2, 642 Cr and NAV as of July 5, 2021 is Rs 376.72. If units in excess of 10% are redeemed within one year of investment, the fund charges a 1% exit load. One can invest in this fund by making a minimum contribution of Rs 1000.

Axis Bluechip Fund Direct Plan Growth

This large cap fund was launched by Axis Bank Mutual Fund in January 2013. Returns for Axis Bluechip Fund Direct Plan-Growth during the last year have been 46.53 percent. According to Value Research, it has produced an average yearly return of 16.99 percent since its debut. The fund has its equity asset allocation across financial, technology, healthcare, services, and fast-moving consumer goods sectors. HDFC Bank Ltd., Infosys Ltd., Bajaj Finance Ltd., ICICI Bank Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings.

The fund has an expense ratio of 0.5% and a 1% exit load is charged by the fund if units in excess of 10% redeemed within 1 year of investment. The latest NAV as of July 5, 2021 is Rs 46.68 and the fund has an asset under management of Rs 27,142 Cr. One can start investing in this fund by making a minimum SIP of Rs 500.

Best Performing Large Cap Funds

Here are the best large cap mutual funds based on returns and rating.

Funds	1 Year Returns	3 Year Returns	5 Year Returns	Rating by Value Research
Mirae Asset Large Cap Fund Direct Growth	52.81%	16.89%	17.19%	5 star
Canara Robeco Bluechip Equity Fund Direct Growth	50.87%	19.50%	18.22%	5 star
Kotak Bluechip Fund Direct Growth	54.51%	17.19%	15.23%	4 star
Axis Bluechip Fund Direct Plan Growth	46.53%	16.84%	17.83%	4 star

Should you invest?

Large-cap mutual funds are mostly preferred for long-term investors. Let’s say investors who have a personal finance goal of 5 years or more, large cap mutual funds are the best to bet. By taking this into consideration, large cap mutual funds have given decent returns if we look at the past returns. According to Value Research, large cap mutual funds have given an average of 16.21% SIP returns over the last 5-years.

The reason why we have taken SIP returns as an example for our readers is that they can watch their investment grow big by making a small amount of contribution. It is suggested that you invest in large cap funds for at least 5 years to get the most out of them. Large cap funds have a relatively high-risk profile, which essentially means that aggressive investors seeking long-term gains may consider investing in them. If you have a low to moderate risk tolerance, you may diversify your portfolio by investing in the top-performing debt funds and equity mutual funds. However, investing in equity mutual funds for the long term is recommended, as these funds may be risky in the short term.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

1. ICICI Prudential Nifty Index Fund-

For the direct plan, the fund carries an expense ratio of just 0.1%. Index is primarily suitable for those investors who are looking at long term wealth creation and aiming to get returns at par with Nifty 50 index.

The fund as of May 31, 2021 commands an AUM of Rs. 1696.95 crore.

SIP in the fund can be started for as less as Rs. 100.

The index fund from ICICI Prudential has managed to offer 1-year return very close to the Nifty 50 TRI i.e. with a low tracking error.

Some of the top Nifty stocks that form the part of the ICICI Prudential Nifty Index Fund are RIL, HDFC Bank, Infosys, ICICI Bank, TCS etc.

2. ICICI Prudential Sensex Index Fund-

Here also for the direct plan the fund entails a expense ratio of just 0.1 percent. NAV of the fund as on July 5, 2021 is 16.83 and the fund is given a 5-star rating by Value Research. The fund AUM as on May 31 has been Rs. 266 crore. In terms of 1-year return, the fund has lagged the benchmark which has delivered 52% return, while the fund has given over 47% return.

SIP in the fund can be started for as low as Rs. 100 and a SIP started 3 years ago has managed to be Rs. 4.91 lakh in value with an investment of Rs. 3.6 lakh.

Majorly the fund is allocated into large cap with financials forming the bulk of the holdings i.e. as much as 42%.

3. Nippon India Index Fund-Sensex Plan:

Nippon India Index Fund-Sensex plan in case of the direct plan charges an expense ratio of just 0.15%. This fund has been rated with 2 stars by CRISIL, while Value Research has accorded the fund a 4-star rating. This expense ratio is less than most other large cap mutual funds.

AUM of the fund as on June 30, 2021 is Rs. 148 crore. Furthermore, there are exit load charges as well which have been pegged at 0.25%.

Over the last 1 year, the returns from the fund have been 47.71% and since launch it has offered 13.01% average annual return. Every 2 years, investors can see their money doubling in value. Furthermore, most of the funds’ corpus is put into financial, energy, FMCG, construction sectors. The top 5 holdings of the fund are in Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., Housing Development Finance Corpn. Ltd., ICICI Bank Ltd..

4. Motilal Oswal Nifty 50i Index Fund

This fund intends to provide return close to the Nifty 50 index subject to tracking error. The expense ratio charged by the fund for the direct plan is 0.1 percent.

AUM of the fund as on June 30, 2021 is Rs. 73 crore. With a moderately high risk, the fund’s 1-year return has been close to 50%. Since inception, the fund’s absolute return has been close to over 30 percent.

Majorly fund is invested into financial stocks and top holdings include RIL, HDFC Bank, Infosys, HDFC, ICICI Bank etc.

Investors can invest into the scheme for as less as Rs. 500 through both SIP as well as in a lump sum way.

Conclusion:

Note these charges or expense ratio i.e. charged for managing the fund is computed annually influences the fund’s returns for its shareholders and hence the value of their investment. Say for an instance: If a fund with an investment of Rs. 10000 entails 2% as charges then Rs. 200 shall be payable by you as this charge and if on that fund, there is a return of say 12% your net return will turn out to be 10%. Thus lower expense ratio will always increase your profits and hence return on your investment.

Disclaimer:

Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.

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