Best Large Cap Mutual Fund for SIP Investments of 500 INR for 1-3 Years
When considering mutual fund investments, especially through the Systematic Investment Plan (SIP) route, a clear understanding of the options available can significantly enhance your investment journey. This article will help you identify the top large cap mutual funds for an SIP of 500 INR for a period of 1-3 years.
Overview of Options
For an investment of 500 INR per month, SBI Bluechip Fund is often recommended for its segment. This fund has a proven track record in the large cap segment. It's important, however, to consider a broader range of options for a more nuanced investment strategy.
Top Mutual Funds for 1 to 3 Years
If you are looking for the best returns over a period of 1 to 3 years, the following funds can be considered:
1. ICICI Prudential Focused Bluechip Equity Fund
This fund, in combination with the SBI Bluechip Fund, is a strong contender. It provides a focused investment in blue-chip companies, ensuring stability and growth. It's a reliable option given its consistent performance over long periods.
2. SBI BLUECHIP FUND
SBI Bluechip Fund is consistently ranked high due to its impressive annualized returns of 20.11% compared to the benchmark SP BSE 100 at 13.85%. The fund has an extensive portfolio with a significant exposure to financial sector stocks, such as HDFC Bank and Larsen Toubro. These top holdings have been strongly performed for over a decade, indicating confidence from the fund managers.
3. Franklin India BlueChip Fund
Franklin India BlueChip Fund is another strong performer, ensuring good returns and stability. It has maintained consistent performance, making it a solid choice for investors looking for long-term growth.
BEST LARGE CAP EQUITY FUND OVERVIEW
Beyond the 1-3 year period, there are a few standout mutual funds worth considering, particularly for those looking to invest for 5 years or more. Here are some of the best large cap equity funds:
1. Birla Sun Life Frontline Equity Fund – Direct Plan
This fund has been a consistent performer for over 15 years. It provides a 19.35% annualized return, significantly outperforming its benchmark BSE 200. This fund is particularly adept at managing market declines, making it a preferred choice for investors wanting stability during bear markets.
2. SBI Blue Chip Fund – Direct Plan
SBI Blue Chip Fund has shown remarkable performance, beating the benchmark SP BSE 100 by 4 percentage points annually. Despite its large cap focus, it holds a significant portion of its portfolio in financial sector stocks, leading to robust returns.
3. ICICI Prudential Focused Blue-Chip Equity Fund – Direct Plan
This fund consistently beats the benchmark NIFTY 50 with a 17.69% return, demonstrating its ability to generate strong returns even with a more focused investment approach.
Conclusion and Market Risks
Mutual fund investments, including SIP investments, are subject to market risks. It's crucial to consider the long-term outlook and your financial goals before making any investment decisions. Diversification, regular monitoring, and a well-planned strategy are key to navigating these risks.
Investing in mutual funds, especially through an SIP, can be a smart choice, particularly for new investors or those looking to grow their wealth over the long term. By understanding your options and selecting the right fund, you can make the most out of your investment journey.
Happy Investing!