What are Large Cap Funds?
Large Cap funds are those which are invested in large cap companies. They are those companies which have a market capitalization of Rs 20,000 crore and more. These companies are leader in their segment and have strong fundamental. These funds generate steady and long-term returns.
What are the best Large cap funds to invest?
Here is the list of 5 best Large Cap funds to invest in 2019, according to Economic Times.
- Axis BlueChip Fund
- ICICI Prudential Blue-chip Fund
- Reliance Large Cap Fund
- Canara Robeco Blue-chip equity
- HDFC Top 100 Fund
Who should invest in Large Cap Funds?
Large Cap Funds are suitable for the investor who wants consistent returns, less volatility and secure capital. One important thing to note that, large cap funds are especially good for the new investor who don’t have much idea about the financial market. These funds are good for risk averse investor or the one who are less aggressive.
Why Invest in Large Cap Mutual Funds with Gulaq?
If any investor invests in Large Cap Mutual Funds with Gulaq, these are the features you get:
- Onboarding and Execution:
Gulaq cut out all the paper jargon. We do everything digitally from KYC to execution. Gulaq will provide simple, easy to understand and hassle procedure.
- Quantitatively optimized:
We have years of experience for your benefit. We have profound researched mutual funds with having market tested reliable advice from experts.
- Transparent and Fair:
We are fully transparent and fair. we don’t charge any commission or any hidden charges. We sell only direct zero commission funds. With the help of experts, we always optimize the portfolio for best returns.
What are the key things to consider before investing in Large CapFunds?
Large cap funds are more risk averse compared to the other funds. But before investing in large cap funds, here are certain things to be taken into consideration:
- Investment Goals:
An investor must have clear defined investment goals in mind or on the paper before investing. Afterwards look out for the funds which investment goals match or come close to your investment goals.
- Expense Ratio:
The expense ratio is one of the most important factors to be taken into consideration before investing. An investor must prefer a fund which has a low expense ratio. Certain fund house has high expense ratio, but they also have high returns.
- Past performance of the Fund.
Before investing in any large cap fund, an investor should first look at its past performance. It will help you in determining the expected returns in near future.
- Experience of the fund manager:
The experience of the fund manager is one of the key things to consider before investing in any fund. A fund manager with large experience will have greater knowledge of the market and the risk. Fund manager with experience and expertise will be able to better manage the fund.
How to evaluate your large-cap funds?
In order to evaluate your large cap mutual funds, four things should be taken into consideration :
The sharpe ratio is risk adjusted returns of a portfolio. If Sharpe ratio is high, it basically means that fund’s returns are quite better than its peers.
Standard deviation is basically the measure of volatility. A standard deviation means volatility of an investment from its annual rate of return. A higher standard deviation will have a higher price range
Beta is a fund responsiveness to the correlated movement of the benchmark. A beta of 1.0 means that volatility is same as that of the benchmark.
Alpha is basically an assessment of profit vis- a- vis to benchmark. Higher the value of Alpha, better is the ability of manager to reap benefits from the benchmark movement.
What is the advantage of Large cap funds?
The advantage of large cap funds :
- Consistent returns and stability: Large cap funds provide consistent returns and stability compared to other funds. Due to strong fundamental and a market leader in the segment, it provides stable returns to investor.
- Less volatility: Large cap funds have less volatility compared to other funds. Due to less volatility they are quite good investment for early investors.
- Capital protection: Large cap funds provide better capital protection against other funds. These funds have decades of experience in the market and they have a better organization structure which protects investor interest.
Let’s invest in Mutual Funds with Gulaq.com
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.