Best 5 Mutual Funds Companies

What exactly are Large Cap Funds?

Large Cap Mutual Funds are open-ended equity funds that invest primarily in large cap companies. These funds must invest at least 80% of their total assets in large cap equity and equity-related instruments. According to SEBI, large cap companies are the top 100 companies in terms of total market capitalisation.

Large cap companies typically have a stable market share and a competitive advantage in their respective industries. These companies have consistent cash flows and strong balance sheets, which puts them in a better position to deal with adversity. These companies are also traded more frequently and thus have a higher liquidity. All of these factors make large cap companies less volatile and more resilient to market downturns. Thus, by investing in large cap funds, investors can avoid the risks of independent stock selection while benefiting from a diversified portfolio of top Indian companies.

 

Mirae Asset Large Cap Fund
This fund invests in sector leaders who have high-quality businesses, a strong pricing advantage, and a long-term competitive advantage. It has the ability to invest in a variety of sectors and themes. It can also invest up to 20% of its portfolio in a few high conviction midcap companies to supplement the consistent returns from large cap firms.

The Axis Bluechip Fund
The scheme’s goal is to outperform its benchmark while keeping market risk at a lower level than the benchmark. Its stock selection is primarily based on the medium-term potential for sustainable earnings growth of stocks. The fund chooses stocks using a bottom-up approach based on their business fundamentals.

ICICI Prudential Bluechip Fund
This fund primarily invests in large-cap companies with strong fundamentals, good growth potential, and a track record of success. It employs a ‘benchmark hugging’ strategy to ensure portfolio diversification and to reduce concentration risk. It invests using a ‘buy and hold’ strategy and selects stocks using a bottom-up approach. In order to generate higher returns, the fund also invests aggressively in high conviction stocks.

Bluechip SBI Fund
This scheme primarily invests in large-cap stocks with strong brand equity and the potential to be market leaders in their respective segments. It may also invest up to 20% of its portfolio in non-large cap equities, as well as debt and money market instruments. The fund employs a mix of growth and value investing styles, as well as a top-down and bottom-up approach to stock selection across various sectors.

Nippon India Large Cap Fund 
This scheme primarily invests in large cap companies that are market leaders or have the potential to be market leaders in their respective fields, have established business models, and generate sustainable free cash flows. It seeks alpha by investing in the best companies in the benchmark index at reasonable valuations and with a relatively higher return on equity. The fund intends to benefit from domestic recovery by allocating funds to themes such as urban discretionary and short-cycle capital expenditures. It is currently overexposed to industrial capital goods and consumer discretionary.

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