What are Large Cap Funds?
Last Updated : July 17, 2019, 2:02 p.m.
For all those who are ready to be invested for a long time and are up for moderate risk, Large Cap Funds is the way to go. These funds are a type of equity mutual funds that invest a large proportion of their corpus in stocks of companies with the highest market capitalization.
What Kind of Stocks Does the Large Cap Equity Fund Invest In?
Companies included in the Large-Cap Funds are mostly blue-chip companies with a great track record over the years. They are known to be established companies, and thus, their stock prices don’t fluctuate much as compared to the small and mid cap companies. Normally, large-cap companies are those companies that fall in the top 100 ranks according to the market capitalization.
For whom is the Large Cap Fund Suitable?
These funds are meant for people who have a moderate risk appetite and want to earn high returns over a long period of time. People who want to gain the maximum out of their equity investments should invest in large cap funds as the stocks of these companies are less volatile. So, if you are looking for high equity exposure with less risk, large cap equity fund is your avenue.
Benefits of Large Cap Funds
Risk : The NAV (Net Asset Value) of large cap funds do not fluctuate as much as it does in the case of small and mid cap funds. Thus, the risk associated is likely to be lesser.
Returns : With large cap funds, the returns are stable. This is because the companies on which the these funds invest have high market capitalization and have been performing well in the past years.
Recommended Large Cap Funds
| Fund Name | 1 Year Return | 3 Year Return | 5 Year return |
|---|---|---|---|
| ICICI Prudential Bluechip Fund | 7.64% | 10.83% | 10.77% |
| Reliance Large Cap Fund | 12.92% | 13.08% | 12.21% |
| Mirae Asset India Equity Fund | 10.59% | 13.79% | 14.02% |
| Axis Bluechip Fund | 5.28% | 13.80% | 11.65% |
| SBI Nifty Index Fund | 7.10% | 11.39% | 9.09% |
Note : Return Data is sourced from Value Research as on July 16, 2019.
Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.