Large Equity Mutual Funds: A Stable And Reliable Investment? Check Out The Top 5 Performing Funds In 2024

Investing in the stock market is always a risky affair, however, there are some ways to mitigate this risk. Large equity funds are one such avenue for making stock market investments relatively simple and safe. 

These funds typically invest the capital in the stocks of well-established, financially strong firms that are household names and have proven their worth over the years. 

Advantages Of Large Equity Funds

Stability - These funds provide investors with a stable income avenue as the large cap stocks are relatively less volatile in comparison to smaller companies. Since these firms are well-established, they are not subject to major market fluctuations and thus, provide a low-risk option to investors for their capital investments.

Diversification - Large equity funds generally invest the capital in stocks of several big firms across sectors. This diversified approach to the portfolio helps manage the risk for the investors and also aims to capitalise on developments across the different industries of the economy. 

Better Returns - While these funds are typically low risk, they still yield more attractive returns for investors in comparison to fixed or traditional investment vehicles such as fixed deposits, etc.

Now that we understand the benefits of large cap equity funds, it is important that investors assess their financial goals and investment objective before opting for a particular fund. Investors with a short-term investment period in mind should not go for these funds as the returns yielded over a longer period are much more lucrative for the investors.

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Top 5 Large Equity Mutual Funds In 2024

Experts have their different choices when it comes to picking out the top 5 favourites in large equity funds in 2024. While some names differ in the lists of experts, Nippon India Large Cap Fund and HDFC Top 100 Fund are a crowd favourite in the year so far.

According to Amit Goel, Co-Founder and Chief Global Strategist, Pace 360, a SEBI registered multi-asset Portoflio Management Service (PMS), Nippon India Large Cap Fund is the top choice amongst large cap equity funds in 2024. Along with annualised returns of 25.58 per cent in the last 3 years, the fund has delivered yields of 18.77 per cent in the last five years.

Following this, ICICI Prudential Bluechip Fund Direct Growth is also popular this year amongst investors. The fund has generated annualised yields of 21.94 per cent in the last three years and 19.05 per cent in the last five years.

Goel places Kotak Bluechip Fund Direct Growth as the third most preferred fund in the year with annualised returns of 18.46 per cent in the last three years and 18.36 per cent in the last five years. 

HDFC Top 100 Fund remains a favourite among the analysts with annualised yield of 21.31 per cent in the last three years and 16.57 per cent in the last five years. 

Tata Large Cap Fund is also considered a good investment avenue with an annualised return of 19.19 per cent in the last three years and 16.87 per cent in the last five years.

Elaborating on the outlook for the large cap funds, Gaurav Goel, a SEBI registered investment advisor, commented, “We remain extremely bullish on Indian equity market. Among equities, we remain more bullish on large cap stocks over mid and small cap stocks because of favourable valuations. One good way of playing large cap story in Indian equity market is through the Mutual Funds. There are number of factors which are important to consider before selecting the right schemes. One of the important factors is the historical return. Generally, people look at point to point returns. However, we prefer rolling returns as they provide a more realistic return perspective. We also pay a lot of emphasis on the fund manager, fund house, liquidity and risk ratios like Sharpe, Treynor and Sortino.”

Goel’s list of top 5 funds included Nippon India Large Cap Fund, ICICI Prudential Bluechip Fund, HDFC Top 100 Fund, Quant Large Cap Fund, and Canara Robeco Bluechip Equity Fund.

While now that you are aware of the features and benefits of the large equity mutual funds, it is critical to conduct your own research before investing in any single fund. 

[Disclaimer: Investing in the stock market involves financial risks. Please invest responsibly and only after thorough research and careful consideration. Reader discretion is advised.]