Mutual Fund SIP Invest818 views
Equities are always a favourite investment option provided your investment objective is to be met in the long-term. You can invest in equities directly or through mutual funds. However, the latter option may appeal the most as it keeps the money in different securities to minimize the market risk that otherwise would lead to the loss of wealth. Mutual funds are broadly classified into equity, debt and hybrid funds. While equity funds invest primarily in equity and equity products to raise the wealth, the debt counterparts look to ensure stability in income by investing in bonds, gilts and money market instruments. Hybrid funds balance the portfolio by shuffling the investments between equity and debt instruments based on the prevailing market conditions. But if you are young, say a 30-year old guy with a whole lot of responsibilities, like the education and marriage of your child, to shoulder out in the future, then you have to bet on equity funds that would have shown good returns over the years along with impressive asset under management (AUM) volume. And within these funds, there is none better than large cap funds that invest in bluechip companies with strong fundamentals. Small and mid cap funds do provide substantially higher returns in the short-term, but can come a cropper in the long run due to weak fundamentals and hence cut down your wealth. So, put your money on large cap funds that have performed excellently in a period of say 5-10 years, a time-frame which you should look upon to rate a mutual fund scheme. I will help you in selecting the right large cap funds by showcasing the details of some large cap equity funds that have been phenomenal in different periods. So, without any ado, let's read out the details related to large cap funds below.
SBI Bluechip Fund
Bet on the top-performer, SBI Bluechip Fund, which invests in the stocks of bluechip companies with a market capitalization at par or over the least market capitalized stock of BSE 100 index. These large cap companies have a large business operation, strong brand value, as well as provide a potential for stable and consistent growth. Just as the result of hard work and wait is sweet, here you will have to stay patient by keeping the money for a long-term to reap the benefits. Here is the performance of the SBI Bluechip Fund in different periods.
AUM & Returns
AUM-Rs 7,820.92 Cr
3-year return- 26.63%
10-year return- 12.32%
Birla Sun Life Frontline Equity Fund
The fund invests across different sectors in line with S&P BSE 200 index. As an open-ended growth scheme, the fund allocates 75%-100% of the investment in medium to high-risk equity and equity instruments and 0%-25% in low to medium debt securities. Check out the returns of the fund below.
AUM- 13634 Cr
3-year return- 24.43%
10-year return- 16.19%
Birla Sun Life Top 100 Fund
Let your major investment portion flow into the stocks of top 100 companies, in terms of market capitalization, by virtue of your association with Birla Sun Life Top 100 Fund, which aims for long-term capital appreciation. The fund invests 65% of the corpus in top 100 companies. These are what the fund does generally. Let's sum up its performance and see below the returns that it provided to investors in different time periods.
AUM & Returns
3-year return- 25.40%
10-year return- 13.55%
Quantum Long-term Equity Fund
Want to leverage from the positive cues emerging in the Indian economy? Choose Quantum Long-term Equity fund that aims to provide long-term capital appreciation by investing in equity and equity securities of companies listed in S&P BSE 200 index. Let's take a close watch on the performance of this open-ended fund below.
AUM & Returns
AUM- Rs 565 Cr
10-year return- 15.78%
SBI Magnum Equity Fund
Give your money a chance to grow by choosing SBI Magnum Equity Fund that bets on equity of high growth companies to raise the investor capital while providing regular income of an open-ended scheme. The performance of the fund has been encouraging with consistent returns to the investors as showcased below.
AUM & Returns
AUM- Rs 1,741.86 Cr
10-year return- 14.15%
Benefits of Large Cap Funds
• Assures Safety of Capital
• Tax-free long-term capital gain
Important Considerations Before Picking Large Cap MF Schemes
• Returns in line with the benchmark index
• Higher Asset Under Management (AUM)
• Risk Category of Assets
• Investment Objective
• Risk Profile
So, bet on these large cap equity funds to bolster your mutual fund portfolio and keep raising your wealth with time.