Top 2 Large Cap Mutual Funds to invest in 2022

Investing in large-cap funds might be profitable for those who are interested in the stock market but have a low-risk tolerance. Bluechip funds are another name for these funds.

According to SEBI regulations, a large-cap mutual fund must invest in the top 100 listed firms/stocks based on their market size, which determines how stable the companies are. These businesses are well-known for paying out regular dividends. These equities give security and certain returns over time due to the continual compounding of wealth. Long-term investors prefer large-cap investments, even if the returns are lower than mid-cap or small-cap funds.

Two mutual funds that invest primarily in large-cap funds include the IDBI India Top 100 Equity Fund and the Canara Robeco Bluechip Equity Fund. As a result, these funds are often known as Bluechip Equity Funds. The top two bluechip mutual funds, according to Crisil, are shown below.

IDBI India Top 100 Equity Fund

Crisil has given the IDBI India Top 100 Equity Fund a 5-star rating, and it invests 99.4% of its assets in Indian companies, with 70.28 percent in large-cap stocks, 11.71 percent in mid-cap stocks, and 5.67 percent in small-cap stocks. This fund also invests 0.02 percent of its assets in debt. In the last six months, it has grown by 12.40 percent, 32.24 percent in the last year, 21.00 percent in the last three years, and 17.41 percent in the last five years. This fund has outperformed its category peers in terms of returns over the last year.

The net asset value (NAV) or per-unit price of this fund is Rs. 43.15. The AUM of this fund is Rs. 540.08 crores, with a 1.33 percent expense ratio. HDFC Bank, Reliance Industries, ICICI Bank, Infosys, and Housing Development Finance Corporation Ltd. – Housing finance are the top five portfolio holdings of this fund. Among the top 10 holdings of the IDBI India Top 100 Equity Fund are 5 banking equities and 1 NBFC stock (Bajaj Finance).

Canara Robeco Bluechip Equity Fund

Canara Robeco Bluechip Equity Fund is a Direct Plan that has received a 5-star rating from reputable research organisation Crisil. This fund invests 96.5 percent of its assets in Indian stocks, with 73.95 percent in large-cap stocks and 9.76 percent in mid-cap equities. In the previous six months, the Canara Robeco Bluechip Equity Fund has grown 9.30 percent, 26.90 percent in the last year, 22.50 percent in the last three years, and 21.00 percent in the last five years. As a result, this mutual fund has provided the best return in the last year.

The net asset value (NAV) or per-unit price of this fund is Rs. 45.59. The AUM of this fund is Rs. 5208.28 crores, with a 0.36 percent expense ratio. Infosys Ltd. – Computers software, ICICI Bank, HDFC Bank, Reliance Industries – Refineries/marketing, and Tata Consultancy Services – Computers software are the top five holdings of this portfolio. Four of the fund’s top ten positions are in the banking sector, while one is in the NBFC sector (Bajaj Finance).

Final Thoughts

These funds should be on your list if you’re looking for long-term large-cap mutual funds. The Canara Robeco Bluechip Equity Fund, on the other hand, is well-known among peers due to its massive AUM, whilst the other listed fund’s AUM is far lower. As a result, investors can feel more comfortable with the Canara fund. However, the IDBI India Top 100 Equity Fund has outperformed the others in terms of returns during the last three years. The Canara Robeco Bluechip Equity Fund, on the other hand, has greater 5-year returns. As a result, you should choose a mutual fund based on your risk tolerance and preferred investment duration.

Even while large-cap mutual funds provide more security, their returns are lower than those of mid-cap and small-cap mutual funds. Bluechip funds have been around for a long time and have a strong reputation in the industry. These aren’t businesses that are developing or expanding. As a result, they have a lower potential upside. Large-cap funds, on the other hand, can be appropriate for long-term investments (about 4 years) in a specific fund with superior security. The funds described above are a well-positioned investment opportunity in the peer category, with the added benefit of a Crisil 5-star rating.