Looking for the best performing large-cap mutual funds, India? If you have a moderate risk appetite and intend to stay in the game for a long time, there are no better alternatives. These “blue chips of the stock market” perform well even during downfalls, offering consistent ROI in the form of capital gains and dividends. They can bring some much-needed stability to your equity-heavy portfolio as well. Nevertheless, not all large-cap funds are built similarly.

To help you pick only the cream of the crop, below are the top-performing large-cap mutual funds in 2022.

  Mutual Fund Scheme 2022  Minimum Investment
  Mirae Asset Large-cap Fund    Rs. 5000
  Axis Bluechip Fund  Rs. 5000
  BNP Paribas Large-cap Fund    Rs. 5000
  ICICI Prudential Bluechip Fund    Rs. 100
    Kotak Bluechip Fund    Rs. 1000
  Edelweiss Large-cap Fund    Rs. 5000
  Canara Robeco Bluechip Equity Fund    Rs. 5000
  UTI Mastershare  Rs. 100

While these are undoubtedly the best mutual funds for large-cap investments this year, you should not base your decision on returns alone. Each fund mentioned in the table is still affected by market fluctuations. So, take a more proactive approach by picking funds based on factors like:

  • Company stability
  • Cash flow management
  • Consistency of performance
  • Expense ratio
  • Exit load
  • Experience of the fund manager

Apart from the above, don’t forget to follow the standard pillars of selection: risk profile, age, financial goal, and investment horizon. Playing by the book will help you get the maximum value from your mutual fund investment.

You can also consider looking at financial ratios like Sharpe ratio to measure the risk-adjusted return of a particular large-cap fund. As for SIP investors, you should consider the fund’s minimum investment amount before sealing the deal.

However, if you’d like a more macro-level evaluation, we have two good ways to help you.  

Additional Read: What are Large Cap Funds? How are They Different from Mid Cap?

How to assess large-cap mutual funds online?

In most cases, the top-performing large-cap funds have a proven record of dividend payments and a steady increase in share price.

Growth potential

A company’s share prices and its profit margins grow parallelly. The company’s growth potential will largely determine the earnings from the fund. So, look out for funds with solid financials, as they tend to fare well despite the market condition.   

At the same time, investing in a fund, thinking its past growth guarantees future profits, will be a fool’s errand. Always perform due diligence before you start investing.

Dividends

Think of dividends as salary bonuses. Most large-cap funds offer excellent dividends from time to time, which can significantly increase your portfolio’s total value. You can also reinvest the dividend gains to buy more stocks. So, when looking for target funds, do factor in their average dividend yield.

Additional Read: What are Large-Cap Funds?

Conclusion

Since large-cap funds invest the pooled money across reliable and reputable companies, they are ideal for booking profits, balancing portfolio, and risk mitigation. If you are considering one, get on the Moneyfy app to find the best mutual funds for your risk profile.

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