Thursday, 23 February 2017

3 Best Large cap Mutual Funds to Invest in 2017

Posted by RaviKumar Nama
(Published on 23-Feb-2017)
Many readers asking me to provide best large cap Mutual funds to invest for their long term goals. Most of my readers are low risk appetite and conservative investors. The large cap mutual funds are less risky than the mid-cap and small cap funds.  These funds are suitable to the person who do not want to take a higher risk. These funds are also best suitable for the investors who wanted to invest through SIP approach for long term and to yield Inflation-beat returns. I am providing 3 Best Large-cap Mutual funds to invest in 2017. Based on some parameters I have selected these Best Large cap Mutual funds which can help to get superior returns in the long run.



What are Large-Cap Mutual Funds:


Large cap Mutual funds are of a type of Mutual funds that invest a major portion of their corpus in large cap companies with capitalization of more than Rs. 10000 crores. Large cap Mutual funds are comparatively stable and less risky mutual funds and provide stable and sustainable returns over a long-term basis.  They are ideal for investors who are thinking long-term but have conservative or moderately aggressive risk profile with long-term goals.

Why Large cap Mutual Funds?


  1. Large cap Mutual funds invest their corpus in Large and stable companies. Hence the yieldings are not only safe but also attractive.
  2. Best suitable for the investors whose Risk appetite is Medium to low.
  3. Best suitable for long term goals (time horizon is more than 5 years).
  4. Always gave Inflation-beat returns.
  5. Through SIP approach, you can invest as minimum as Rs 500 per month into these Mutual funds.
  6. No need to pay tax on every year like in Bank FDs or Postal investment schemes. 

Factors considered for selection of these Large cap Mutual Funds:


  • Last 5 years tracke record
  • AUM of the fund which has more than 100 crores
  • Considering the CRISIL and Value Reasearch Online ratings
  • Managing by top Fund Houses
  • Having Diversified portfolio 

3 Best Large cap Mutual Funds to Invest in 2017:


Investing in Mutual Funds is one of best investment option for your long term goals. There are many categories of Mutual funds available in the market to suit the different Risk category customers. Large cap Mutual funds are best suitable for the customers who are with low risk profile and looking inflation-beat returns in the long term. The following are the 3 Best Large cap Mutual funds to invest in 2017:


1. Birla Sun Life Frontline Equity Fund:

Birla Sun Life Frontline Equity Fund launched in 2002 and is one of the best Large cap Mutual fund which has been giving consistent performance from the last 10 years. Selection of funds and the right product mix making this Mutual fund a 5-star rated Mutual fund from the last few years. 85% of its portfolio consists of large caps and the remaining 15% in Mid caps. The fund maintains the stocks for long term holdings. Most of these stocks are stable and having good growth prospectus.From the last 10 years, this fund has been beating its benchmark in its category. Currently the TOp 5 sectors consists of Banking, IT, FMCG, Automobile and Energy. HDFC Bank, Infosys, ITC, Tata Motors, Reliance, Maruti, Sun Pharma are some of the major stocks in its portfolio. SIP is allowed and the minimum SIP investment is Rs 1000. Investors who are looking good returns in the long term with low risk can invest into this Mutual fund through SIP approach.


2. Quantum Long Term Equity Fund:

Quantum Long Term Equity Fund has launched in 2006. From the last 3 years, this fund has been showing best performance among all Mutual funds in its category. More than 80% of its portfolio consists of Large caps and the remaining in Mid and small caps. Automobile, Banking, IT and Energy are the top sectors it invests. Bajaj Auto, HDFC, Hero Motocorp, Infy, TCS, NTPC and SBI are the major companies that included in its portfolio. You can invest through SIP approach and the minimum SIP investment is just Rs 500. Hence, this is best suitable for the investors who wanted to invest in small amounts systematically for their long term goals.


3. ICICI Prudential Focused Bluechip Equity Fund:

ICICI Prudential Focused Bluechip Equity Fund is launched in 2008. This is one of the best Large cap Mutual fund that has been giving superb returns from the last 5 years. In 2016, this fund has given the returns twice the bench mark returns. From the last 6 years, this fund has been maintaining its 5-star rating given by Value Research Online (VRO). The fund essentially relies on bottom-up stock selection to identify companies that offer reasonable potential for long-term growth.Almost 90% of its portfolio consists of Large caps and the remaining in Mid caps. The aggressive large cap portfolio is the secret of its success in its category. It allows SIP investments and the minimum SIP investment is Rs 500 only.


Important Points While Investing into Large cap Mutual funds:


  1. Invest through SIP approach only for long term
  2. Do not invest in lump-sum as the Markets are volatile in nature
  3. Do not withdraw amount in the middle of the target period.
  4. Suitable for long term goals only
  5. Do not bather about the Markets volatility and keep on invest for the defined time horizon

Conclusion:

Investing in Large cap Mutual funds through SIP approach is one of the Best investment approach for the low-risk investors. If you are looking for Inflation-beat returns along with less risk, Large cap Mutual funds are the best choice.

Happy Investing.

Disclaimer

This data is for Academic purpose only. The data published on this post is just my opinion based on my own research and analysis and is provided as a general market commentary. As it does not take into account of your personal circumstances, please do not invest based solely on this information. By Viewing any material or using the information within this post you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general information provided here.

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