Amidst the BSE’s overall market cap standing at a record high, if you are a new investor with a long term financial goal of 5 to 10 years, we recommend investing in Large Cap Funds, as this equity category has performed well with an average return of around 55% in one year and a year to date (YTD) return of approximately 29%. Starting a Systematic Investment Plan (SIP) can be a good bet for new investors or investors with a risk-averse appetite who have a long term financial goal of at least 5 years to generate wealth over a long period without subjecting themselves to high risk and volatility as compared to mid-cap and small-cap funds.
Investors can expect volatility in the near term, as well as dramatic market declines; as a consequence, we recommend staying invested in the long-term potential of equity with a diversification with best performing Balanced Advantage Funds through a systematic investment plan, which is an excellent alternative for all types of investors. For those who want relative safety along with growth on their portfolio, here we have picked up the 3 best large-cap funds based on the rating of “No 1” given by CRISIL as of 30th June 2021.
Canara Robeco Bluechip Equity Fund
Canara Robeco Bluechip Equity Fund Direct-Growth is a Large Cap mutual fund scheme that was introduced by Canara Robeco Mutual Fund in 2010. It is a medium-sized fund in its category, with an expense ratio of 0.36 percent, which is comparable to the expense ratio charged by most other Large Cap funds. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 53.58 percent over the last year and it has generated a CAGR of 13.75 percent since its inception.
The fund has its equity allocation across the Financial, Technology, Energy, Construction, Healthcare sectors. HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings. Canara Robeco Bluechip Equity Fund has been rated “No 1” by CRISIL, 5 star by Value Research and again 5 star by Morningstar which indicates the quality of the fund in terms of past performance.
As of 5th October 2021, the fund has a Net Asset Value (NAV) of Rs 42.31 and the Asset Under Management (AUM) of the fund is Rs 4,271.67 Cr. The fund charges an exit load of 1% if allocated units are redeemed within 1 year of the purchased date and one can start SIP in this fund with a minimum amount of Rs 1000.
|Period||Canara Robeco Bluechip Equity Fund – Growth||Scheme Benchmark (S&P BSE 100 TRI)||Additional Benchmark (S&P BSE Sensex TRI)|
|CAGR since Inception||13.75 %||12.35 %||12.59 %|
|1 Year||53.58 %||58.92 %||56.96 %|
|3 Year||21.47 %||18.51 %||19.03 %|
|5 Year||17.26 %||16.54 %||17.60 %|
|Comparative performance of Canara Robeco Bluechip Equity Fund – Growth as of Sep 30 , 2021. Source: Official website of the fund house|
IDBI India Top 100 Equity Fund
It is an open-ended equity scheme predominantly investing in equity and equity-related Instruments of Large Cap companies. The fund’s expense ratio is 1.34 percent, which is higher than the expense ratio charged by most other Large Cap funds. IDBI India Top 100 Equity Fund Direct-Growth Returns in the previous year were 61.79 percent, according to Value Research, and it has generated 15.77 percent average annual returns since its debut.
The financial, technology, energy, construction, and services sectors are featured in the equity allocation of the fund. Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings. The fund charges an exit load of 1% if purchased units are redeemed within 12 months from the date of allotment. The fund’s Net Asset Value (NAV) is Rs 44.25 as of October 5, 2021, and its Asset Under Management (AUM) is Rs 519.49 Cr.
CRISIL has given IDBI India Top 100 Equity Fund a “No 1” rating, Value Research has given it a 3-star rating, and Morningstar has also given it a 3-star rating, indicating the fund’s historical performance and effectiveness. SIP in this fund can be started from Rs 500.
|1 mth returns||6 mth returns||1 yr returns||3 yr returns||5 yr returns|
Franklin India Bluechip Fund
This Large Cap mutual fund scheme has been around for 27 years, thanks to the fund house Franklin Templeton Mutual Fund. The product charges a 1.9 percent expense ratio, which is more than most other funds in the large-cap category. Franklin India Bluechip Fund-Growth returns in the previous year were 58.70 percent, and from its inception, it has generated an average annual return of 20.21 percent. The fund’s equity allocation has been diversified across Financial, Energy, Construction, Healthcare, Communication sectors.
The fund’s best-performing holdings are ICICI Bank Ltd., State Bank of India, Axis Bank Ltd., Bharti Airtel Ltd., Infosys Ltd.. If purchased units are redeemed within 12 months after the date of allocation, the fund imposes a 1% exit load.
As of October 5, 2021, the fund’s Net Asset Value (NAV) is Rs 719.28, and its Asset Under Management (AUM) is Rs 6,687.30 Cr. CRISIL has given the Franklin India Bluechip Fund a “No 1” rating, Value Research has given it a 2-star rating, and Morningstar has given it a 3-star rating, indicating how well the fund has fared during market ups and downs. If allocated units are liquidated within one year of the purchase date, the fund levies a 1% exit load, and one can start a SIP in this fund with a minimum contribution of Rs 1000.
|Compounded Annualized Growth Rate Performance|
|Period||Fund||Nifty 100||Nifty 50|
|Last 1 Year||58.70%||—||52.24%|
|Last 3 Years||12.53%||—||14.94%|
|Last 5 Years||11.98%||—||15.70%|
|Last 10 Years||13.25%||—||14.48%|
|Last 15 Years||12.97%||—||—|
|Since Inception (01/12/1993)||20.21%||—||—|
|As of 31/08/2021. Source: franklintempletonindia.com|
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