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Large Cap Mutual Funds - Becoming A Part Of The Top Most Companies


After reading this article, you will understand what large cap mutual funds are and who should invest in them.

AMCs or the Asset Management Companies invest further, the pooled money, in different type of securities such as equity, debt, money market instruments, etc. When the investment is made largely in equities of companies with large market capitalization, they are called Large cap mutual funds.

Key Features:

  • Stable Returns: This type of mutual fund is known for providing stable returns over a long period of time. As the money is invested in the equity of companies with large market capitalization, they have the benefit of goodwill and keep earning stable income from their products and services.
  • Low Risk: These funds are low risk funds as the companies they invest in are the established ones. They have enough market presence to be able to earn a minimum level of income, even if they are not performing that well in that particular time period. This is the reason, they are considered to have a low risk.

Who Should Invest in?

“To be an investor, you must be a believer in a better tomorrow.”

It is much suitable for those investors who don’t want to indulge in risks, are ready for a longer lock-in period, and need stable returns. By selecting dividend scheme, investors can also enjoy a new source of consistent income. As it is said, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” which clearly indicates, the benefits attached with investment can be best achieved when the investment is made for longer tenure. Thus, investors who are risk averse, need stable returns, and can invest for longer duration should consider such funds.

Top Recommended Large-Cap Funds

Some of the top recommended large-cap funds include Reliance Top 200 Fund, Kotak Select Focus Fund, Aditya Birla Sun Life Top 100 Fund, etc.

These large-cap funds have been selected after thorough market research and comparison made between different schemes. There are cases where the risk is comparatively high but then, so will be the gains. This is how the risk and gain is anticipated.

Among the above three recommended large-cap fund, Reliance Top 200 Fund and Kotak Select Focus Fund have high risk, whereas Aditya Birla Sun Life Top 100 Fund has medium risk. ICICI Prudential Focused Bluechip Fund is one of the top recommended funds that has quite a low risk factor as compared to others.

Some details of the top three recommended large cap mutual funds are:

  1. As on, 25th May, 2018, the NAV of Reliance Large-Cap Fund - Retail Plan (Erstwhile Reliance Top 200 Fund) is Rs. 31.6551 with assets of Rs. 9,833 crore as on 30th April 2018. Its large-cap investment percentage is 31.38%.
  2. As on, 25th May 2018, the NAV of Kotak Standard Multi-Cap Fund Regular Plan (Erstwhile Kotak Select Focus Fund) is Rs.32.616 with assets of Rs. 19,228 crore as on 30th April 2018. Its large-cap investment percentage is 21.64%.
  3. As on, 25th May 2018, the NAV of Aditya Birla Sun Life Focused Equity Fund - Direct Plan (Erstwhile Aditya Birla Sun Life Top 100 Fund) is Rs. 59.3464 with assets of Rs. 4,212 crore as on 30th April 2018. Its large-cap investment percentage is 34.39%.

For more details, you can check out the top large cap funds and analyze on the basis of your requirements. If you have a little knowledge about these concepts, then you should consider a financial advisor and take proper advise before investing.