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Do you face problems in your investment plans due to market volatility? If yes, then large cap mutual funds are the best for you because they get less affected by the frequent changes in the market. Large cap funds are those which invest in the equities of giant companies. These companies are well established, and leaders in the market, and thus, the normal fluctuations in the market do not affect their operations. Most of the large cap funds invest almost 90% of their total capital in equities and the remaining part in the debt and money market instruments. In spite of carrying high risk, they often beat all the categories in terms of generating high returns in the long run.
There is a famous saying by William G.T. Shedd that goes - “A ship is safe in harbor, but that’s not what ships are for.” Similarly, equity funds are not meant to be safe like bank deposits and fixed income funds; rather they are for fetching extreme returns while overcoming the market risks. The top-three recommended schemes in this category are:
SBI Blue Chip Fund (G): Launched on February 14, 2006, this scheme of SBI Mutual Fund showed an average run until 2010. But, in the year 2010, when Sohni Adnani started managing this fund, it took the right path towards growth. Since then, this fund has beat both its benchmark and category by decent margins. The main reason for its recognition among the best large cap mutual funds is the consistency in its performance.
DSP BlackRock Focus 25 Fund (G): This scheme was launched on June 10, 2010, with the objective of achieving high capital appreciation by investing in the equities of large companies. It invests almost the whole of its capital in stocks of various giant entities in their industry in terms of market capitalisation. Although it carries moderately high risk, it manages to provide excellent growth in the long run.
ICICI Prudential Top 100 Fund (G): This scheme targets toward attainment of a blend of high growth and returns on the investment. It parks over 95% of its total investable capital in the equities of giant companies to enjoy less risk from market volatility. Mr Sankaran Naren started managing this scheme in 2012, and gained in his work in just a few years. The fund has been performing consistently well in comparison with its benchmark and category. Its NAV as on July 05, 2017, has been recorded at Rs. 300.81, which shows an appreciation of around 260% since 2012.
Therefore, large cap funds are perfect for those investors who are looking forward to growing their investment exponentially while getting least affected by the market volatility.
Accordingly, it can be concluded that to achieve big objectives you need to walk a long way ahead. Similarly, in the case of these funds, it requires a long period of time to attain high growth. You can choose the best large cap funds which are recommended on various online investment platforms like MySIPonline to start investing for your long-term goals.