How the Top 10 Large Cap Mutual Funds Have Performed in Recent Past?
Large-Cap Mutual Funds are a model choice for investment, especially for those seeking good return prospects together with lesser degree of risk than small-cap and mid-cap funds. These funds involve an exposure to large-cap stocks having a long-term performance record that ensures greater stability than what mid or small-caps could offer.
Moreover, the focus of growth funds is on achieving a noticeable amount of capital growth by investing in stocks of companies, the value of which is anticipated to increase over the long term. However, comparatively more risk tolerance and the determination to station funds for the longer term are necessary when investing in this type of securities. This is because, they may encounter lesser volatility in comparison to the other equity fund classes.
In this blog, we are going to discuss how the top 10 Large-Cap Funds (as per the size of their assets under management) have performed in the recent past; which are the funds that have beaten the benchmark (BSE 100), and who are those that couldn’t do so well in the market.
Before we proceed to discuss the performances of the top large cap mutual funds, let us first get a brief idea about what they actually are, what do they aspire to achieve, and to whom they will suit the best.
Large caps are basically, pure equity-based funds, where the money is invested into the large companies and giant body corporates of the market. These funds are managed by professional fund managers, and dwell the objective of long-term wealth creation and appropriate risk management. These funds are best-suited to investors seeking moderate risk in equity exposure.
Breaking Down the Performance Analysis
The mutual funds are managed by highly professional and experienced persons that hail from strong financial background. This enables to squeeze the highest rewards from the market by beating the benchmark in both the bullish and bearish conditions. Although every precaution is taken to make the funds perform at their best level, sometimes they may not do so well. There are certain parameters on the basis of which the judgement of a particular fund’s performance is made.
A couple of such parameters are the Upside and Downside ratio, where the former is used to identify those funds that have outperformed the benchmark, and the latter is used to identify the underperformers of the market. Before hopping to the analysis directly, let’s first understand these terminologies on the basis of which we have drawn our conclusions following their explanation as follows –
**Upside Ratio – This ratio shows if a given fund has been able to outperform a broad market benchmark during bullish (favourable) market conditions, and if so, to what extent. Upside capture ratios are computed by including the fund's monthly return of the period during which the benchmark had performed positively, and then dividing it by the benchmark return during that same period.
**Downside Ratio – This ratio designates whether a fund has given negative performance more than its benchmark during the bearish (unfavourable) market scenarios. Downside capture ratios are arrived at by taking the fund's monthly return during the period of underperformance and dividing it by the benchmark return.
The Star Performers
On the basis of the information provided in the chart, let’s identify which funds topped the chart under the Large-Cap Funds category by beating the benchmark and producing commendable returns:
- Mirae Asset India Opportunities Fund : Mirae Asset India Opportunities Fund: This fund wins the gold medal for outperforming the benchmarks in both the bullish and bearish market conditions.
- Kotak Select Focus Fund : This fund has beaten the benchmark with the highest margin in the favourable market conditions. Also, it performed well when the market was at a decline.
- Reliance Top 200 Fund : This fund has beaten the benchmark with a huge margin in the favourable market scenario. However, it’s performance was slightly weaker in the unfavourable condition which slipped it to third position.
- ICICI Prudential Focused Bluechip Equity Fund : Although this fund beat the benchmark in the bullish scenario, there was slim margin of 1.29% by which it outperformed. However, it performed well in the bearish scenario.
- HDFC Top 200 Fund : Though this fund beat the benchmark in the bullish market conditions, it couldn’t outperform in the bearish conditions which makes us understand that this is an aggressive fund in the Large-Cap category.
- DSP BlackRock Top 100 Equity Fund : This fund has beaten the benchmark in the favourable market conditions. However, in the unfavourable market conditions, it’s performance wasn’t satisfactory as it didn’t beat the benchmark. It is an aggressive Large-Cap Fund.
The Weak Contestants
- UTI Equity Fund : This fund’s performance wasn’t so well in the bullish conditions as it didn’t outperform the benchmark. However, it has performed well in the bearish conditions by beating the benchmark with a handsome margin.
- Franklin India Bluechip Fund : This fund wasn’t able to outpace the performance yardstick under the bullish conditions. However, it has successfully conquered the performance benchmark in the bearish conditions.
- ABSL Frontline Equity Fund : Although this fund didn’t perform well and fell shy of meeting the benchmark with a slight margin in the bullish market, it has beaten the benchmark in the bearish market with a good margin.
- SBI Bluechip Fund : Although it couldn’t outperform the benchmark under the bullish market conditions, this fund performed remarkably well in the bearish market conditions and beat the benchmark with a huge margin.
The Weak Contestants
- DSP BlackRock Top 100 Equity Fund : We can see that although this fund has beaten the benchmark in the bullish market, it was the worst performing fund in the bearish market having the highest downside ratio.
- Franklin India Bluechip Fund : This fund wasn’t able to touch the performance benchmark in the bullish conditions, but was able to conquer it in bearish conditions.
- ICICI Prudential Focused Bluechip Equity Fund : This fund beat the benchmark with a very slim margin of merely 1.29% in the bullish scenario. However, it performed well in the bearish scenario.
- ABSL Frontline Equity Fund : This was the worst performer in the bearish conditions and even didn’t beat the benchmark in the bullish conditions.
Thus, through this information, you can get a close view of the performance analysis of the top-10 large cap funds in India and accordingly, decide which funds will suit you best for your prospective investments. At MySIPonline, you’ll get all these funds at one place. So, start investing today for your wealthier future.
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