Top 10 Large-Cap Mutual Funds to Invest in 2020

Large-cap mutual funds are the most sought after mutual funds and are often called as bluechip funds. The word bluechip in mutual funds originates from the game of poker, where the blue coloured chips hold the highest value on the table.

In the same way, bluechip in the stock market is referred to those stocks which hold national and international reputation, reliability and has strong financials.

Large-Cap mutual funds invest in companies having a market capitalisation of more than Rs 20,000 crore and invest a minimum of 80% of its assets in stocks of such companies. And, compared to other funds like mid-cap and small-cap, the returns from large-cap funds are more predictable and are less volatile.

Following are the list of top large-cap mutual funds to invest in 2020:

  • ICICI Pru Bluechip
  • SBI Bluechip
  • ABSL Frontline Equity
  • HDFC Top 100
  • Mirae Asset Large Cap
  • Nippon India Large Cap
  • Axis Bluechip
  • Motilal Oswal Focused 25
  • BNP Paribas Large Cap
  • Sundaram Select Focus

ICICI Pru Bluechip Fund

Fund facts

Launch date23rd May 2008
AUMRs 24,635 crore
BenchmarkNifty 100
Expense ratio1.71
Standard deviation11.24
Beta0.84
Sharpe0.64
Alpha-1.97
Returns (3Y, 5Y, 10Y)12.99, 9.06, 12.55

The fund is one of the top performers in the segment, consistently providing higher double-digit returns to its investors. The risk-grade of the fund is below average and the fund has invested approximately 34% of its assets in the financial sector. Its top holdings are HDFC Bank, ICICI Bank, Infosys, Axis Bank, Airtel and Reliance Industries.

SBI Bluechip Fund

Fund facts

Launch Date14th Feb 2006
BenchmarkBSE 100
AUMRs 23 484 crore
Expense1.66%
Standard deviation12.16
Beta0.88
Sharpe0.50
Alpha-3.51
Returns (3Y, 5Y, 10Y)11.54, 9.39, 11.41

The fund is a consistent performer and carries a moderate risk on the investments. The fund has the highest exposure in the financial sector with a 42% share, followed by construction, energy and FMCG. Its top holdings are HDFC Bank, ICICI Bank, ITC, Larsen & Toubro, Nestle and Reliance Industries.

ABSL Frontline Equity Fund

Fund facts

Launch date30th August 2002
BenchmarkNifty 50
AUMRs 21,255 crore
Expense ratio1.77
Standard deviation11.80
Beta0.88
Sharpe0.46
Alpha-4.29
Returns (3Y, 5Y, 10Y)10.91, 8.01, 11.35

The fund aims for long term capital appreciation through a portfolio with a target allocation of 100% in equity. The risk metrics are moderately high for the fund, but with a lower turnover ratio of 24%, it can keep the cost of managing the fund low. The fund invests a majority of its assets in financial stocks (41%), followed by energy, technology and construction.

Top holdings of the funds are HDFC Bank, ICICI Bank, Reliance Industries, Infosys, Larsen & Toubro and HDFC.

HDFC Top 100 Fund

Fund facts

Launch date11 Oct 1996
BenchmarkNifty 100
AUMRs 18,748 crore
Expense ratio1.73%
Standard deviation14.18
Beta1.05
Sharpe0.50
Alpha-4.38
Returns (3Y, 5Y, 10Y)12.61, 7.62, 10.80

Earlier known as HDFC Top 200 fund, the fund is one of the oldest and has proved its mettle in the market by providing consistent returns to its investors since its inception. The fund has invested 99.5% of its assets in equity with the majority in financials, energy, technology and construction. The top 3 sector constitutes approximately 75% of the asset.

Its top holdings are ICICI Bank, Reliance Industries, HDFC Bank, State Bank of India and Larsen & Toubro.

Mirae Asset Large Cap Fund

Fund facts

Launch date4th April 2008
BenchmarkNifty 100
AUMRs 16,519 crore
Expense ratio1.68%
Standard deviation12.11
Beta0.94
Sharpe0.80
Alpha-0.50
Returns (3Y, 5Y, 10Y)15.76, 11.65, 14.44

The fund is the star performer in the segment, outperforming all other funds in the category. Compared to other, the fund carries a low risk on the investment and has invested the majority of its assets in financial, energy, technology and FMCG. Its top holdings are HDFC Bank, ICICI Bank, Reliance Industries, SBI and Infosys.

Nippon India Large Cap Fund

Fund facts

Launch date8th August 2007
BenchmarkBSE 100
AUMRs 13,010 crore
Expense ratio1.82%
Standard deviation13.97
Beta1.01
Sharpe0.60
Alpha-2.66
Returns (3Y, 5Y, 10Y)14.05, 8.83, 11.88

The fund follows a bit aggressive style of management and carries a high risk on the investment compared to others. It has invested 99.7% of its assets in large-cap equity stocks. The fund has a majority of its holdings in financial, energy, automobile and FMCG stocks.

Its top holdings are SBI, HDFC Bank, ICICI Bank, Larsen & Toubro and ITC.

Axis Bluechip Fund

Fund facts

Launch date5th Jan 2010
BenchmarkNifty 50
AUMRs 9,481 crore
Expense ratio1.76%
Standard deviation11.46
Beta0.80
Sharpe1.19
Alpha4.84
Returns (3Y, 5Y, 10Y)20.15, 10.36, -

The fund invests almost 82% of its assets in large-cap equity stocks and rest is invested in the debt instrument. Further in the equity segment, it has invested 94.75% of the fund in giant companies allowing it to capture most of the market movement without investing in riskier assets.

Its top holdings are HDFC Bank, Reliance Industries, ICICI Bank, Kotak Mahindra Bank and Bajaj Finance.

Motilal Oswal Focused 25

Fund facts

Launch date13th May 2013
BenchmarkNifty 50
AUMRs 1,177 crore
Expense ratio2.18%
Standard deviation13.49
Beta0.91
Sharpe0.62
Alpha-1.62
Returns (3Y, 5Y, 10Y)14, 9.96, -

The fund seeks to invest in up to 25 companies with a long term sustainable competitive advantage and growth potential. The investing strategy is helping the fund and can provide higher double-digit returns.

It has invested its assets in 21 stocks with a large focus on financials, services, healthcare and construction. One of the negative points is its higher expense ratio compared to other funds. Its top holdings are HDFC Bank, ICICI Bank, HDFC Life Insurance, Kotak Mahindra Bank and Container Corp.

BNP Paribas Large Cap Fund

Fund facts

Launch date23rd Sept 2004
BenchmarkNifty 50
AUMRs 813 crore
Expense ratio2.38%
Standard deviation12.05
Beta0.88
Sharpe0.79
Alpha-0.06
Returns (3Y, 5Y, 10Y)15.64, 8.70, 12.10

Since its inception, the fund has consistently outperformed its category by giving a higher double-digit return to its investors. The fund follows a bit aggressive style of management and invests in businesses which can provide higher returns compared to the index.

The fund has invested the majority of its assets in financial, FMCG, technology and energy with top holdings are HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank and Infosys.

Sundaram Select Focus Fund

Fund facts

Launch date30th July 2002
BenchmarkNifty 50
AUMRs 1,060 crore
Expense ratio2.33%
Standard deviation11.79
Beta0.91
Sharpe0.87
Alpha0.38
Returns (3Y, 5Y, 10Y)16.49, 8.92, 8.51

The fund invests in a maximum of 50 stocks and is suitable for risk-averse investors. Currently, the fund is invested in 30 stocks with maximum exposure in the financial sector (46.73%), followed by energy, construction and FMCG. Its top holdings are HDFC Bank, ICICI Bank, Reliance Industries, L&T and HDFC.

And, if you’re confused about how to select the right equity mutual fund, you can read this article to have a clear understanding.

How to Measure the Performance of Equity Mutual Funds

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