Recommended Mutual Funds – Equity – Large Cap Funds
Equity is a powerful asset class that offers potential for long term wealth generation. However this potential is only realized for those investors that are able to maintain a diligent and disciplined approach towards it.
Investors should select the schemes wisely wherein the fund managers are aligned with their long term approach to risk management and wealth creation. We should also invest responsibly and therefore included the Sustainaibility score of the recommended funds.
Large Cap Equity Mutual Funds make a base for your equity portfolio and should weigh at-least 35-40% of your equity portfolio.
BIA Invest Recommends following Large Cap Funds for your Mutual Fund Portfolio.
Following is a brief note on the funds I have recommended :
A. Axis Bluechip Fund : No doubt the out-performer at all counts, the fund was launched in Jan-2010 and has generated a return of 12.53% since inception. The Fund enjoys a 5-Star Rating from Morning Star and rightly so, as it generates return which is much above the category average and the risk undertaken is below the category average. The Fund follows a growth strategy and sticks to the same. The portfolio comprises of high quality stocks – companies having improving cash flows and earnings visibility.
B. Mirae Asset Large Cap Fund : The Fund’s philosophy has been built on three core principles : quality businesses with stable earnings, strong management and attractive valuation. The fund was launched in April 2008 and has a solid track record of delivering better risk adjusted returns compared to it’s benchmark and it’s peers.
The Fund is Rated by the Morning Star Analyst Rating of Silver.
C. ICICI Prudential Bluechip Fund : The Fund was launched in April 2008 and is one of the best in the category. The fund has been highly consistent and adopts a benchmark conscious approach and align the portfolio’s sector weightings to those of the Benchmark i,e the Nifty. The fund also has a rigorous focus on valuation and risk which ensures portfolio performance across cycles. The Fund house has a huge team and competent fund managers to execute the strategy efficiently. The Fund is Rated by the Morning Star Analyst Rating of Silver.
D. Kotak Blue chip Fund : The fund manager follows a growth at reasonable price strategy and uses the model portfolio created by the analyst team as his initial reference point. He applies a qualitative check and invests in sector leaders focusing on the long term stock bets. The fund has not been a consistent performer, but the strategy has the potential to perform.
E. Nippon India Large cap Fund : The fund manager takes over weight or under weight positions in sectors depending on his views on them. The fund has a potential to outperform in a long term. The research intensive investment approach of the fund house and presence of a skilled fund manager brings confidence.