Top Large Cap Mutual Funds for Stable and Long-term Growth
Finding the right mutual fund to invest in can be challenging, but for retail investors seeking steady returns with a lower risk profile, large cap mutual funds are a prudent choice. These funds primarily invest in well-established, market-leading companies, making them a reliable option for long-term wealth creation. In this guide, we will explore some of the top-performing large cap mutual funds in India and provide insights into why they are worth considering for your investment portfolio.
Understanding Large Cap Mutual Funds
Large cap mutual funds invest in companies with a market capitalization of more than Rs 20000 crores, typically the largest and most established firms in the market. These companies tend to exhibit greater stability compared to smaller, riskier counterparts. Consequently, large cap funds are considered relatively less risky, offering a more predictable return on investment.
Top Performing Large Cap Mutual Funds in India
The following are some of the best large cap mutual funds in India, known for delivering robust and consistent returns:
HDFC Top 100 Fund Direct Plan Growth
The HDFC Top 100 Fund Direct Plan Growth has been a standout performer, achieving a 10-year CAGR (Compounded Annual Growth Rate) of over 14.54%. The fund follows a blend of value and growth styles, investing predominantly in large-cap stocks across various sectors. Over the last three, five, and ten years, it has consistently outperformed its benchmark index, the SP BSE 100 Total Return Index (TRI).
Axis Bluechip Fund Direct Plan Growth
The Axis Bluechip Fund Direct Plan Growth is another notable fund with a 10-year return of over 14.92%. This fund has a significant allocation towards the Information Technology, Financial Services, and Consumer Goods sectors. By concentrating on companies with strong competitive advantages, it aims to provide steady growth and returns.
Mirae Asset India Equity Fund
The Mirae Asset India Equity Fund takes a multi-cap approach, allowing it to invest across different market caps, but it maintains a substantial portion of its holdings in large caps. Over the long term, this fund has outperformed its category significantly, making it a compelling choice for investors seeking capital appreciation and stable returns.
Benefits of Investing in Large Cap Mutual Funds
Investing in large cap mutual funds offers several advantages, particularly for those who prefer a steady and predictable return on their stock market investments. These funds typically finance only the largest and most reputable companies, which helps in maintaining a more stable stock price pattern. The longer-term stability of these companies often leads to the payment of dividends and reduced volatility in their share prices.
Large cap mutual funds can be an excellent choice for building a core portfolio, providing a balanced mix of growth and stability. For retail investors looking to create a long-term investment strategy, these funds can play a crucial role in wealth accumulation.
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