It is generally assumed that equity mutual funds do better than the long term. The funds that invest in well-established companies titled “Blue Chip ” or “Large Caps ” are called large cap funds. These Large Cap funds are considered safer than any small or medium-cap organizations. But experts also advise not to invest in a company by just seeing its past results as it does not assure the future performance of the company.
The important factors that influence investment decisions are an investor’s risk tolerance, investors’ needs, and the characteristics of the funds themselves. Before going for an investment, self-research for an inverter and consulting a financial expert become very important. The best way to conduct your own research is by searching websites. There is a lot of information available online.
Here are the top 5 most growing Large Cap funds that you can consider investing in 2023. This list is made by keeping in mind the average rolling returns and up capture and down capture ratio.
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What exactly is meant by the terms ‘up capture’ and ‘down capture ratio’?
With the help of capture and down capture, a fund’s overall performance is estimated. If the upside capture ratio for a fund is greater than 100, it is assumed that the fund has performed better than the benchmark when the benchmark has given positive returns. On the other hand, if the downside capture ratio for a fund is below 100, which shows that the fund is facing losses, but these losses are not as severe as the benchmark when the benchmark was in red.
1. Mirae Asset Large Cap Fund
This becomes a reliable fund for 2023, as it has shown consistency. It has generated a three-year average rolling return of 15.31 percent over the past ten years. This fund has also left behind the Nifty 100 index by 96.69 % over the period of 10 years. The up-market capture ratio for this fund is 102 percent, while the down-market capture ratio is 91 percent. This has been happening for the past ten years.
2. Canara Robeco Bluechip Equity Fund
According to the reports of the last ten years, this particular fund has generated 13.38 percent of three years average rolling return. Considering the Nifty 100 index, Canara has made a growth of 92.45 percent in the last ten years. 94% is the upmarket capture ratio, and a 78% downmarket capture ratio is maintained by Canara Robeco Bluechip Fund for the previous ten years.
3. Axis Bluechip Fund
Axis Bluechip Fund has shown 13.82% of three years’ average rolling returns in the 10-year term; it also has beaten the Nifty 100 index by 89.98% times in these ten years. For Axis Bluechip Fund, the market capture ratio is 93%. Additionally to this, the down market capture ratio is 73% perfect.
4. ICICI Prudential Bluechip Fund
For the last ten years, the ICICI Prudential Bluechip Fund has generated three-year average rolling returns of 13.11 percent. It beats the Nifty 100 index by 84.96% during these ten years. The up-capture ratio in the fund market is 96%; similarly, the down-market capture ratio has been 89% over the last ten years.
5. Kotak Bluechip Fund
Kotak Bluechip Fund has made a three-year rolling return of 12.13 % in the last ten years. Their records have beaten the nifty 100 indexes by 74.70 percent times. The upmarket and down capture ratio for this fund has been 99% and 98%, respectively, for the past ten years.
For investors who want to invest in equities but are uncomfortable with the high risk and volatility coming with the equities, large-cap funds come out as a good alternative. You can get a better amount of return if you keep your money invested for a longer period of time. Your returns depend upon the time you invest money. A minimum of three to five years of investment in these funds are advised to expect a good return.
In short, people willing to take more risks are likely to invest in small and mid-cap funds. Still, those who are seeking less unpredictable returns, want to acquire market leaders, and are trying to build a strong, foundational portfolio will prefer to go for large cap funds.
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