Large Cap Mutual Funds are the funds that invests majorly in companies with large market capitalization. These funds are known to give stable and consistent returns on a long-term basis because they operate from a relatively safe zone, where investments are mainly in solid, established, blue-chip companies. These are ideal for investors with a moderately-aggressive risk profile. The returns of the large cap funds tend to be lower than mid-caps and small-caps that invest in potential leaders. However, during the phases of market lows, large caps are known to contain losses in a much better manner, compared to mid-caps and small caps.
Here are the top 5 large cap mutual funds for the year 2016. Please remember that past performance is not indicative of future performance, though it can be considered a good metric. The data is based on the information as available on August 2016.
1. SBI Bluechip Fund – The fund has delivered 12.32 percent, 19.04 percent and 26.83 percent on a 10-year, 5-year and 3-year perspective, respectively. The fund was launched on February 14, 2006 and has returned 11.73 percent since launch. The expense ratio for this fund is 1.99 percent. The top five sectors the fund concentrates on, are financial, healthcare, automobile, energy and technology. The fund manager is Sohini Adani, who has been associated with the fund since 2010. It is a multi-cap fund with 80 percent of its assets pooled in large caps and the rest in mid-caps; there is no small-cap exposure in this fund. The fund is known for its consistent performance throughout years, with the returns in the past four years turning to be even more commendable.
2. Birla Sun Life Frontline Equity Fund – It has delivered 16.19 percent in ten years, 17.24 percent in five years and 24.43 percent in the past one year. The fund was launched on August 30, 2002 and the returns since launch has been 23.08 percent. The top five sectors the fund invests in include financial, energy, FMCG, technology and automobile. The expense ratio for this fund is 2.27 percent. The fund manager Mahesh Patil has a long association with the fund, he has been with Birla Sun Life Frontline Equity Fund since 2005. The fund invests 84 to 90 percent in large caps with a mid-cap allocation that can be anywhere between 10 and 20 percent. While the fund has done well in bull markets, it is known to contain losses very fall in bearish markets, like 2008, 2011 and 2015. This is a proven fund that has shown its tenacity across all market cycles.
3. Birla Sun Life Top 100 Fund – The fund has given 13.55 percent in ten years, 17.13 percent in five years and 25.4 percent in three years. The fund which was launched on October 24, 2005 has delivered 15.55 percent since inception. The expense ratio for this fund is 2.36 percent. The top 5 sectors the fund invests in, are financial, energy, technology, automobile and FMCG. Mahesh Patil, the fund manager, is associated with the fund since 2010.
4. Quantum Long Term Equity Fund – This fund has delivered 15.78 percent, 16.58 percent and 23.62 percent on a 10, 5 and 3-year basis. Quantum Long Term Equity Fund was launched on March 13, 2006 and it has delivered 15.69 since inception. The expense ratio for the fund is 1.25 percent. The fund is known to concentrate on energy, automobile, financial, technology and chemicals as the top five sectors. There are two fund managers associated with the fund, Atul Kumar (since 2006) and Nitesh Shetty (since 2011).
5. SBI Magnum Equity Fund – The fund has returned 14.35 percent in ten years, 15.11 percent in five years and 22.51 percent in three years. It is one of the oldest large cap funds, launched on January 01, 1991. The returns since launch has been 15.71 percent. The expense ratio for this fund is 2. 13 percent. The top 5 sectors for SBI Magnum Equity Fund are financial, energy, technology, automobile and FMCG. The fund manager is Srinivasan, associated with the fund since May 2009. While the fund performed average till 2010, the performance has improved dramatically since 2011. The fund invests 85 to 90 percent in large caps; in recent months, the proportion has increased to more than 95 percent.