Investing in mutual funds is one of the easiest ways to diversify your portfolio and achieve long-term financial goals. Large-cap mutual funds are considered a safe bet for investors who want to invest in blue-chip companies with a proven track record. In this blog, we will discuss the top 10 large-cap mutual funds in India for the year 2021.
- Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is a top-performing large-cap mutual fund that has consistently delivered impressive returns over the years. It has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 28.54% in the last one year.
- Axis Bluechip Fund
Axis Bluechip Fund is another top-performing large-cap mutual fund that has given impressive returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 30.76% in the last one year.
- SBI Bluechip Fund
SBI Bluechip Fund is a popular large-cap mutual fund that has consistently delivered good returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 27.85% in the last one year.
- ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund is one of the top-performing large-cap mutual funds in India. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 27.45% in the last one year.
- Kotak Bluechip Fund
Kotak Bluechip Fund is a popular large-cap mutual fund that has consistently delivered good returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 29.67% in the last one year.
- Aditya Birla Sun Life Frontline Equity Fund
Aditya Birla Sun Life Frontline Equity Fund is a top-performing large-cap mutual fund that has consistently delivered impressive returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 27.46% in the last one year.
- Nippon India Large Cap Fund
Nippon India Large Cap Fund is a popular large-cap mutual fund that has consistently delivered good returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 27.17% in the last one year.
- DSP BlackRock Equity Fund
DSP BlackRock Equity Fund is a top-performing large-cap mutual fund that has consistently delivered impressive returns over the years.
- HDFC Top 100 Fund
HDFC Top 100 Fund is a popular large-cap mutual fund that has consistently delivered good returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 27.05% in the last one year.
- Franklin India Bluechip Fund
Franklin India Bluechip Fund is a top-performing large-cap mutual fund that has consistently delivered impressive returns over the years. The fund has a diversified portfolio of blue-chip companies, including HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and TCS. The fund has a 5-star rating from Value Research and has given a return of 25.69% in the last one year.
Factors to consider before investing in large-cap mutual funds
While investing in large-cap mutual funds, there are several factors to consider. Some of the factors are as follows:
- Fund Manager Experience – The experience of the fund manager is a crucial factor to consider. A fund manager with a proven track record can make a significant difference in the fund’s performance.
- Expense Ratio – The expense ratio is the amount charged by the fund house for managing the fund. A low expense ratio means higher returns for the investors.
- Performance – The fund’s performance over the years is an important factor to consider. Investors should look for funds that have consistently delivered good returns over the years.
- Risk – Large-cap mutual funds are considered less risky than mid-cap and small-cap funds. However, investors should still consider the risk associated with the fund before investing.
- Diversification – A diversified portfolio is important to minimize the risk associated with investing in a single company.
Conclusion
Large-cap mutual funds are considered a safe bet for investors who want to invest in blue-chip companies with a proven track record. The top 10 large-cap mutual funds in India for the year 2021 are Mirae Asset Large Cap Fund, Axis Bluechip Fund, SBI Bluechip Fund, ICICI Prudential Bluechip Fund, Kotak Bluechip Fund, Aditya Birla Sun Life Frontline Equity Fund, Nippon India Large Cap Fund, DSP BlackRock Equity Fund, HDFC Top 100 Fund, and Franklin India Bluechip Fund. Investors should consider various factors before investing in a mutual fund to make an informed decision.
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Frequently Asked Questions (FAQs)
What are large-cap mutual funds?
Large-cap mutual funds are funds that invest in stocks of large-cap companies, which are companies with a market capitalization of more than Rs. 10,000 crore. These companies are considered to be blue-chip companies with a proven track record and stable financial performance.
Are large-cap mutual funds safe for investment?
Large-cap mutual funds are considered to be less risky as they invest in blue-chip companies with a stable financial performance. However, as with any investment, there is always a certain amount of risk involved. It is recommended to consult with a financial advisor before investing.
What is the minimum investment required for large-cap mutual funds?
The minimum investment required for large-cap mutual funds varies depending on the fund house. Some funds have a minimum investment requirement of Rs. 1,000, while others may have a minimum requirement of Rs. 5,000 or more.
Can I invest in large-cap mutual funds through SIP?
Yes, most large-cap mutual funds allow investors to invest through the Systematic Investment Plan (SIP) mode. SIP allows investors to invest a fixed amount at regular intervals, such as monthly or quarterly.
How is the performance of a large-cap mutual fund evaluated?
The performance of a large-cap mutual fund is evaluated based on various factors such as the fund’s returns over a period, the fund manager’s experience, the expense ratio, and the risk associated with the fund.
What is the expense ratio of a large-cap mutual fund?
The expense ratio is the amount charged by the fund house for managing the fund. The expense ratio of a large-cap mutual fund varies depending on the fund house and the fund’s size. It is recommended to choose a fund with a low expense ratio to maximize returns.
Can I switch from one large-cap mutual fund to another?
Yes, investors can switch from one large-cap mutual fund to another. However, it is recommended to consult with a financial advisor before making any changes to the investment portfolio.
What is the tax implication of investing in large-cap mutual funds?
Investing in large-cap mutual funds attracts capital gains tax, which is based on the investor’s holding period. Short-term capital gains tax is applicable if the investment is held for less than one year, while long-term capital gains tax is applicable if the investment is held for more than one year.
What are the advantages of investing in large-cap mutual funds?
The advantages of investing in large-cap mutual funds include the stability of blue-chip companies, lower risk as compared to mid-cap and small-cap funds, and the potential for higher returns in the long term.
How can I choose the best large-cap mutual fund to invest in?
To choose the best large-cap mutual fund to invest in, investors should consider factors such as the fund’s performance over a period, the fund manager’s experience, the expense ratio, and the risk associated with the fund. It is recommended to consult with a financial advisor before making any investment decisions.
