Invest in Best Large Cap Funds Mutual Funds in India 2024
Explore the best Large Cap Funds in India for 2024. Learn who should invest, key benefits, risks, and find the top 5 performing funds
What is meant by Large Cap Funds?
Large Cap Funds are the type of funds that primarily invest in companies with large market captitalization, typically top 100 companies listed in the stock exchange. Large cap companies have good and established track record. Typically, the market capitalization of these companies are Rs. 20000 crore and above. They provide steady returns through the investment period.
Who Should Invest in Large Cap Funds?
- Conservative Investors: Individuals who are looking for stable and reliable returns with significantly lower risk compared to mid and small-cap funds.
- Long-Term Investors: Those with a long-term investment horizon, typically 5 years or more, aiming for consistent growth. These funds perform over a longer time horizon
- First-Time Equity Investors: Beginners looking to enter the equity market with a safety net generally prefer investing in it, as their investment goes to safe companies
- Risk-Averse Investors: People who prefer lower volatility and are focused on preserving capital while earning moderate returns.
Top 5 Large Cap Funds
| Fund Name | Category | Risk | 6-Month Return | 1-Year Return | Rating | Fund Size (Crores) |
|---|---|---|---|---|---|---|
| ICICI Prudential Bluechip Fund | Large Cap | Very High | 17.5% | 39.64% | - | ₹55,936.4 |
| JM Large Cap | Large Cap | Very High | 21.29% | 47.60% | - | ₹5,233.53 |
| Nippon India Large Cap Fund | Large Cap | Very High | 18.36% | 40.00% | - | ₹5,295.33 |
| Taurus Large Cap | Large Cap | Very High | 18.87% | 42.52% | - | ₹448.78 |
| Baroda BNP Paribas Large Cap | Large Cap | Very High | 21.96% | 42.76% | - | ₹4,212.00 |
Factors to Consider While Investing in Large Cap Funds
- Historical Performance: It is important to review the funds’ historical returns as it would give you a picture of funds’ performance in the years to come
- Returns: Investors have to understand that these funds provide moderate returns compared to small cap or medium cap industries, since they are already established. If you are okay with average returns, then you can invest in it
- Fund Manager’s Expertise: The experience and track record of the fund manager in managing large-cap portfolios would come in handy
- Investment Objective: Ensure the fund’s investment objective aligns with your financial goals and risk tolerance.
Major Benefits of Large Cap Funds
Stability: Investments in large, well-established companies provide steady returns with low volatility
Liquidity: Large-cap stocks are highly liquid, making it easier to buy and sell without affecting the price
Dividend Payouts: Many large-cap companies offer regular dividends, providing additional income.
Lower Risk: Compared to mid and small-cap funds, large-cap funds carry relatively lower risk.
Risks Involved in Large Cap Funds
Market Risk: Susceptible to overall market volatility and economic conditions. Owing to geopolitics and
Lower Growth Potential: May offer lower growth potential compared to mid and small-cap funds, especially in bullish markets.
Sector Risk: Overexposure to certain sectors can increase risk if those sectors perform poorly.
Regulatory Risk: Changes in government policies and regulations affecting large-cap companies can impact fund performance.
Interest Rate Risk: At times, the rising Interest rates can cause securities process to fall. Interest rates are determined by credit availability
FAQ on Large Cap Funds
What are Large Cap Funds?
Large Cap Funds are equity mutual funds that invest in well-established companies with large market capitalizations, typically the top 100 companies listed by the share market
Who should invest in Large Cap Funds?
It is best suited for conservative investors, long-term investors, first-time equity investors, risk-averse investors, and those planning for retirement
What are the benefits of investing in Large Cap Funds?
Stability, higher returns, and potential for regular dividends
What are the risks associated with Large Cap Funds?
Market related risks, lower growth potential as the firms are already established, regulatory risks, and fluctuating interest rate risk
How do I choose the right Large Cap Fund?
Factor in historical returns, expense ratio, and fund manager’s expertise, your investment goal, risk appetite