Investing in the markets is a challenging task. It requires a lot of domain expertise and agile attitude. For lay investors who are fiercely involved in their 9 to 5 grind job and don’t have much time to research upon the right stocks to build a diversified portfolio can invest in the mutual funds. These funds are a gateway towards the equity market and enable the investors to battle against inflation with the modest means.
The biggest benefit of mutual funds is they are managed professionally and are monitored well. However, these schemes come with a label that mutual fund investments are subject to the market risks. This often raises an eyebrow in the mind of readers. There are many other questions that grapple the mind of the investors like should they opt for mid- cap mutual fund, small cap mutual fund or a large cap mutual fund? Here, we will solve the dilemma and answer you which large cap mutual fund is better.
Big Fund Mutual Scheme or small scheme: Which one is better?
Well, the track record of the scheme is more important than the corpus. Advisers generally recommend for large cap mutual funds because they have a good record as compared to tiny corpus. Smaller funds are not backed by a good history and high performance. Other than that, after a particular size large corpus funds charge you less in contrast to a smaller corpus. Above all, if you are a conservative investor and don’t wish to enter into the equity stock market, then ideally it is the best option. Such scheme will shield you against the volatile market risks and are in line with your attitude.
What are the best large cap mutual fund schemes?
Aditya Birla Sun Life Insurance-Listed as no 1 in the large gap mutual fund schemes by CRISIL offers you good returns and give you a valid reason to stay invested.
Kotak Select Focus Fund– This mutual fund scheme aims to offers capital appreciation from the diversified portfolio of equity and related instruments. As the name suggests this fund is focused on few sectors only.
SBI Blue Chip Fund and Blue Chip Direct– Both these mutual fund schemes invest your money in blue chip companies with good credit rating and brand equity.
A chart depicting who wins the battle:
|Large Cap||NAV||Returns for one year|
|ABSL Top 100(G)||55.34||14.6|
|ABSL Top 100-Direct(G)||57.84||16.0|
|Kotak Select Focus Fund-Direct(G)||32.89||18.4|
|Kotak Select Focus Fund- Regular(G)||31.44||17.0|
|Sbi Blue Chip Fund-||35.98||10.1|
|SBI Blue Chip Fund Direct||37.49||11.4|
Though a lot of mutual funds are launched with a great fanfare, but investors should prefer mutual funds that have sufficiently good track record. A new fund may appear attractive but it could be a flying blind in absence of the performance.