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Best Large Cap Funds to Invest in 2021

What is Market Capitalisation?

The market capitalisation of a company is the number of outstanding shares of that particular company multiplied by the price of each share. It is an indicator of the size of the company based on its market value.

Market Capitalisation = (Number of shares outstanding) * (Share Price)

Market capitalisations of companies are broadly classified into three types –

Market CapitalisationRank In CountryExample
Large CapGreater than Rs 20,000 CrTop 100 CompaniesReliance Industries, Infosys
Mid CapGreater than Rs 5000 Cr, but less than Rs 20,000 CrRank among 100-250 companiesCastrol India, LIC Housing Finance
Small CapLess Than Rs 5000 CrRanked lower than 250Hathway Cable, Thyrocare Technologies Ltd

The companies with large market capitalisations are typically market leaders in their respective sectors and are considered to be reliable. These companies also have strong financials which aid in maintaining stability despite market fluctuations and economic conditions/downturns.

These stocks tend to underperform when compared to small-cap and mid-cap companies with respect to returns. However, they also tend to offer low volatility and high stability; and hence are suitable for risk-averse investors.

Funds that invest a large % of their total assets into companies with high/large market capitalisation tend to be more stable than others. These funds are known to often generate a profit for their investors due to the stable performance of their underlying securities.

These funds are suitable for investors looking to invest for a long-term horizon of 5-7 years. These funds stay strong and deliver stable returns despite the economic downturns (bear market) and hence are suitable for investors looking for low-risk options for wealth creation.

Scheme NameReturn 1 Year (%) DirectReturn 3 Year (%) DirectReturn 5 Year (%) DirectDaily AUM (Cr.)
Canara Robeco Bluechip Equity Fund57.9417.7518.382,250.25
Axis Bluechip Fund46.3216.5518.3425,134.85
Kotak Bluechip Fund66.7014.1115.632,392.31
BNP Paribas Large Cap Fund51.6814.0315.111,041.16
Mirae Asset Large Cap Fund61.4713.7717.7823,976.51
UTI Mastershare Fund62.3513.4815.367,823.84

Let us now take a look at 6 large-cap funds that have delivered good returns over the past few years and how they have performed.

1. Canara Robeco Bluechip Equity Fund

Minimum Investment Amount (Lump Sum)Rs 5000
Minimum SIP investment AmountRs 1000
Expense Ratio 0.58%

Performance

The fund has delivered an annualised return of 17.75% over the last 3 years and has constantly outperformed its benchmark (S&P BSE 100 Total Return Index). The fund has also outperformed other funds and the category average.

Pros

  • Expense ratio is on the lower end
  • Fund has higher 1 year, 3 year and 5 year returns as compared to the category average.

Cons

None

2. Axis Bluechip Fund

Minimum Investment Amount (Lump Sum)Rs 5000
Minimum SIP Investment AmountRs 500
Expense Ratio 0.50%

Performance

The fund has delivered an annualised return of 16.55% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index). The fund has also outperformed other funds and the category average.

Pros 

  • Expense ratio is on the lower end
  • Fund has higher 3 year and 5 year returns as compared to the category average.

Cons

  • AUM of the fund is greater than 15,000 Cr. The performance of the fund with respect to the returns stagnates when the fund crosses this AUM threshold. Investors should keep an eye on the performance by monitoring the returns of the fund.

3. Kotak Bluechip Fund

Minimum Investment Amount (Lump Sum)Rs 1000
Minimum SIP Investment AmountRs 100
Expense Ratio 0.92%

Performance

The fund has delivered an annualised return of 14.11% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index). 

Pros

  • Expense ratio is on the lower end
  • Fund has higher 3 year and 5 year returns as compared to the category average

Cons

None

4. BNP Paribas Large Cap Fund

Minimum Investment Amount (Lump Sum)Rs 5000
Minimum SIP investment AmountRs 300
Expense Ratio 1.02%

Performance

The fund has delivered an annualised return of 14.03% over the last 3 years and has constantly outperformed its benchmark (NIFTY 50 Total Return Index). 

Pros

  • Expense ratio is on the lower end
  • Fund has higher 3 year and 5 year returns as compared to the category average.

Cons

None

5. Mirae Asset Large Cap Fund

Minimum Investment Amount (Lump Sum)Rs 5000
Minimum SIP Investment AmountRs 1000
Expense Ratio 0.54%

Performance

The fund has delivered an annualised return of 13.77% over the last 3 years and has constantly outperformed its benchmark (NIFTY 100 Total Return Index). 

Pros

  • Expense ratio is on the lower end
  • Fund has higher 1year, 3 year and 5 year returns as compared to the category average.

Cons

  • AUM of the fund is greater than 15,000 Cr. The performance of the fund with respect to the returns stagnates when the fund crosses this AUM threshold. Investors should keep an eye on the performance by monitoring the returns of the fund.

6. UTI Mastershare Fund

Minimum Investment Amount (Lump Sum)Rs 5000
Minimum SIP Investment AmountRs 1000
Expense Ratio 1.02%

Performance

The fund has delivered an annualised return of 13.48% over the last 3 years and has constantly outperformed its benchmark (S&P BSE 100 Total Return Index). 

Pros 

  • Expense ratio is on the lower end
  • Fund has higher 1year, 3 year and 5 year returns as compared to the category average.

Cons

None

Conclusion

Listed above were the best large-cap mutual funds to invest in in 2021. You can start investing in them through the EduFund platform by just downloading the app and signing up.

Note – Mutual fund investments are subject to market risks. The past performance of any fund is no surety of its future performance. Please do your own research on the risks associated.

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