Active Stocks
Tue May 28 2024 15:59:27
  1. Tata Steel share price
  2. 174.85 -0.37%
  1. HDFC Bank share price
  2. 1,530.50 0.17%
  1. ITC share price
  2. 428.90 -0.60%
  1. State Bank Of India share price
  2. 830.90 -0.38%
  1. Infosys share price
  2. 1,466.20 -0.37%
Business News/ Mutual Funds / Best mutual funds: These 7 large cap schemes beat the benchmark in past 1, 3 and 5 years
BackBack

Best mutual funds: These 7 large cap schemes beat the benchmark in past 1, 3 and 5 years

Performing well for a year could very well be a coincidence but consistently performing well enough in order to beat the benchmark across tenures is definitely a better testament to a mutual fund’s performance

Large cap mutual funds are the ones which invest 80 percent of their assets in large cap stocks. Premium
Large cap mutual funds are the ones which invest 80 percent of their assets in large cap stocks.

When a retail investor opts for a mutual fund scheme, they tend to give a considerable priority to the returns delivered by the scheme vis-à-vis other schemes in the category.

For instance, when you want to invest in a large cap mutual fund, it is rational to examine the past returns delivered by the schemes across mutual fund houses to make an attempt towards gauging their long-term potential.

Although investment experts often caution investors against deciding to invest in a scheme solely on the basis of its past returns, also known as historical returns, it is not wise to overlook this factor either.

Here we filter out a number of large cap mutual funds based on their past returns across tenures such as one, three and five years. A mutual fund scheme can perform well for a year coincidentally, but consistently performing well for a number of years exemplifies a scheme’s long-term potential.

Large cap funds

Large cap mutual funds are the ones which invest 80 percent of their assets in large cap stocks, according to the Sebi’s categorisation of mutual funds. And large cap stocks refer to the securities of companies, which are ranked from 1 to 100 when sorted on the basis of market capitalization.

ALSO READ: Mutual Funds: How to choose the right debt funds? Here are 7 key factors to consider

There are seven mutual funds in the large cap category which have managed to beat the benchmark in the past one, three and five years.

These include Nippon India Large Cap Fund, Tata Large Cap Fund and ICICI Prudential Bluechip Fund.

Large Cap funds 1-year-return (%) 3-year return (%) 5-year return (%)
Baroda BNP Paribas Large Cap Fund            37.17   18.92               17.34   
Edelweiss Large Cap Fund     31.68   17.67     15.77   
HDFC Top 100 Fund35.08   21.64   15.21
ICICI Prudential Bluechip Fund37.38   21.32   17.29
Invesco India Largecap Fund 37.5919.23   15.34
Nippon India Large Cap Fund41.54   25.26   16.92
Tata Large Cap Fund              32.43   18.12   15.22

(Source: AMFI; returns as on April 16, 2024)

There are a few mutual fund schemes which have done well in the past one year but their regular returns did not manage to beat the benchmark returns in the past three and five years.

These include DSP Top 100 Equity Fund, Bank of India Bluechip Fund, HSBC Large Cap Fund, Quant Large Cap Fund and Taurus Large Cap Fund.

It is vital to mention here that the past returns of a mutual funds do not guarantee its future returns just as the past year’s performance of a stock is no assurance of its future performance.

Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 18 Apr 2024, 09:40 AM IST
Next Story footLogo
Recommended For You