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Large-Cap Funds Outperform with Consistent Returns Despite Market Volatility
Mutual Funds: Large-cap mutual funds are rapidly emerging as a reliable option among investors. Demand for these funds has steadily increased due to stable returns, investments in strong companies, and relatively low risk. Recent data shows that a leading large-cap fund has delivered returns of over 22% over the past five years, an encouraging sign for long-term investors.
Large-cap mutual funds are gradually becoming a desired investment product, with a five-year return exceeding 22 percent. The assets under management (AUM) of a number of mutual fund houses are now above Rs 50,000 crore. Nippon India Large Cap has now joined the list. Earlier, ICICI Prudential and SBI funds also crossed the landmark of Rs 50,000 crore in AUM.
This has been accomplished, despite lower investment in equity funds, mainly because of profit-booking following the recent market rally and meeting the increased liquidity demand during the festive season. Large-cap funds are a safe investment choice for newcomers as well as risk-averse investors because of the investment portfolios of such funds. Large-cap funds mainly invest in blue-chip stocks, which are said to have a robust business model, along with investing in the respective sectors.
