|Name of Fund||5 Year Returns (p.a.)||Scheme Category|
|Kotak Bluechip Fund||14.24%||Large Cap|
|Axis Bluechip Fund||13.50%||Large Cap|
|ICICI Prudential Bluechip Fund||12.90%||Large Cap|
|Mirae Asset Large Cap Fund||13.76%||Large Cap|
|SBI Bluechip Fund||14.01%||Large Cap|
The fund that invests its larger portion of corpus in large-cap companies come under large-cap funds. These companies are highly reputed, trustworthy, and strong in every aspect of the business. The stability of such companies allows its investors to generate regular income along with compounding wealth.
Equity funds are known for its risk with return benefits in the market. All equity related instruments hold risk depending on the nature, size, and working of the company. With fluctuating benchmark of the market, Net Asset Value (NAV) of these funds either increases or decreases.
However, large cap funds have lower risk as they invest in large-cap companies as compared to small-cap or mid-cap funds. These funds give stability to the investors’ portfolio. But, with low risk comes low returns. Large cap funds offer lower returns than mid-cap or small-cap funds.
Large-cap funds are recommended for conservative investors who are seeking to earn some passive income. Investors looking for long-term financial goals, low risk, and steady income, can consider large-cap funds over other types. These companies are comparatively stable with high-profit margins. They can efficiently survive the volatile market by offering more benefits than the risk factor.
FD is a no-risk instrument and is ideal for long -term as well as for short-term periods. Whereas, all equity instruments are market-based with no-fixed rate of returns. The decision of investing in FD or long-term mutual funds depends upon the investor’s risk capacity and the amount that he is willing to invest. FD requires a lump-sum amount; whereas, long-term funds can be initiated with a lump sum or an amount as low as ₹500. It is always beneficial to invest in long-term funds as compared to FD as the prior offers low-risk with convincing returns.
There are two options to invest in long-term funds, namely, lump-sum and SIP. There is no limit for the investor if he wants to invest a lump-sum amount. However, SIP is a monthly/quarterly/half yearly investment plan. In SIP, the investment amount can be as less as ₹500 per month.
Large-cap funds invest its money in large-cap companies. Under SEBI’s guidelines, its mandatory for large-cap funds to invest 80% of its corpus in large-cap companies consisting of first 100 companies of BSE/NSE as per the market capitalization.
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Investment in mutual funds or any asset class comes with an inherent risk. This is just a web-based tool for getting a rough estimate about the future value of your SIP/lump sum investments. The calculations are based on projected annual returns and periods. The actual annual returns may be higher or lower than the estimated value and it may have a significant impact on the final returns/goals.
So, you are requested to kindly do your own analysis or hire an expert financial advisor/planner before making any investment decision.
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