Large-cap or bluechip mutual funds are suitable for investors who are looking for profitable returns with a good security quotient. Here portfolio of a bluechip fund has been discussed, rated by rating agency Value Research.
Large-cap investment rationale
The bluechip mutual fund and SIPs will invest in the top 100 stocks listed in the equity markets. According to rating agency Value Research, “When you invest for five years or more, you can expect gains that comfortably beat the inflation rate as well as returns of fixed income options. But be prepared for ups and downs in your investment value along the way. This is a fund that invests in big companies. Compared to those that invest in smaller companies, such funds tend to fall less when stock prices fall. Therefore, they are more suited to conservative equity investors.”
For mutual funds, the NAV and AUM of the mutual funds should be analyzed by the investors.
Canara Robeco Bluechip Equity Fund – Direct Plan-Growth
Canara Robeco Bluechip Equity Fund – Direct Plan is a mutual fund SIP investment that has a NAV of Rs. 43.90, and the size – Of assets Under Management (AUM) of this fund is Rs. 6647.28 crore. On the other hand, the Expense Ratio (ER) of this fund is 0.45%, while the category average is 1.08%. The ER is quite lower than the category average, so it is helpful to the profitability of the investors.
AUM is the total market value of the assets which a mutual fund will manage at a point in time. The Expense Ratio is the percentage, which the fund house will use from the retail investors’ investments, for fund management purposes.
This mutual fund SIP has been best rated with 5 Star by rating agency Value Research.
Absolute and annualized returns
As it is a large-cap fund, its absolute returns from SIPs have been reported higher in the long term. In the last 1-year SIP return stood at 0.95%, in the last 2 years it has fetched 21.93% returns, in the last 3 years it has given 35.25% returns, in the last 5 years, it has fetched 55.5% returns. Annualized returns from Canara Robeco Bluechip Equity Fund – Direct Plan’s SIP were 20.36% in the past 2 years, and 20.63% in the past 3 years.
Canara Robeco Bluechip Equity Fund – Direct Plan’s absolute mutual fund returns are the highest in 5 years terms. In the last 1 year return stood at 17.19%, in the last 2 years it has fetched 78.17% returns, and in the last 3 years, it has given 67.81% returns, in the last 5 years it has given 107.86% returns. In the past 2 years, the Canara Robeco Bluechip Equity Fund – Direct Plan’s annualized returns stood at 33.43%, however, the category average was marginally higher at 34.22%.
(Data till April 25, 2022)
Canara Robeco Bluechip Equity Fund – Direct Plan’s total equity holding is 95.26%, and the rest of the 9.83% is invested in other sectors. Among a total of 44 stocks, the Fund’s Large Cap Investments are 76.56%, Mid Cap Investments are 7.43%; and 11.27% investments are allocated to other funds.
The top 10 equity holdings of the fund are Infosys Ltd., ICICI Bank Ltd. Banks, HDFC Bank Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., Bajaj Finance Ltd., Larsen & Toubro Ltd., State Bank Of India, Bharti Airtel Ltd., Axis Bank Ltd.
Other funds under this category are, IDBI India Top 100 Equity Fund – Direct Plan – Growth, Invesco India Large-cap Fund – Direct Plan – Growth, LIC MF Large Cap Fund – Direct Plan – Growth, etc.
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.