Top SIP Mutual Funds in 2019. This essentially talks about the suitable SIP investments in view of volatile markets for generating good tax and inflation adjested return on medium to long term period.
Best Large-cap Mutual Funds to invest in 2019
It is no secret that Mutual Fund is one of the best tools for investment today, the wide variety of schemes offer a various solution for financial needs. In this post, we will focus on the Equity Mutual Funds which has helped in long term wealth creation over two decades in the large-cap category.
Large-cap Mutual Funds – These schemes invest in the top 200 largest companies by market capitalization. However, each large scheme has a specific investment strategy which we will discuss little later. All these funds are open-ended equity mutual fund. The fund houses charge 1% as exit-load, if redeemed before 1 year. So, we begin with the list of Best Mutual Funds of 2019 in the Large-cap category. The list of top large-cap schemes with SIP returns for 3, 5, 7, 10, 15, and 20 years.
SIP Returns Table
|ABSL Frontline Equity||8.43||12||12.74||14.75|
|Axis Blue-chip Fund||11.68||13.58||–||–||–|
|SBI Bluechip fund||8.29||12.36||12.81||–||–|
|HDFC TOP 100||10.1||12.31||12.39||14.75||19.3|
|ICICI Pru Bluechip||10.10||12.49||13.29||–||–|
1.HDFC TOP 100 – It deserves the top spot on all parameters – oldest fund, one of the largest funds with over Rs. 15,000 crores of AUM, almost 20% compounding return on investment through SIP for 20 years. It is amongst the best large-cap mutual funds. It also managed double-digit growth for all time period, considered top-performing mutual fund in the category. Scheme’s 98.95% investment is in Indian equities of which 89.62% is in large-cap stocks, 9.31% is in mid-cap stocks. It has registered expense ratio of 1.44% in the direct funds as on 31-Jan-2019. It follows the benchmark Nifty 100. It is invested in 48 stocks, of which top 5 accounts for 40% of the portfolio, top 10 accounts for 63% of the portfolio. Top 3 sectors include Banking – 30%, software – 13.5% and OEM at 12%. The Scheme has a little higher tilt towards Mid-cap compared to peers.
2. Aditya Birla Sunlife Frontline Equity – ABSL Frontline Equity, launched in 2002, is one of the oldest and largest schemes in the country with an AUM of over Rs. 15,000 crores. Scheme’s present allocation includes 96.43% in Indian equity of which 82.36% is in large-cap stocks, very small exposure of 12.25% is in mid-cap to increase the potentially higher returns, 1.84% in small-cap stocks. The fund has 0.02% investment in very low-risk debt securities. It allows a minimum SIP investment of Rs. 100/-. It is an open-ended fund, has an exit-load of 1%, in cases of withdrawal within 1 year. It is currently holding about 66 stocks, Top 5 stocks account for 30 %, top 10 stocks account for 45% of the portfolio. Top 5 sector include – Banks and Financial services, IT, Pharma, Auto, FMCG and Cigarette
Fund manager – Mahesh Patil is a veteran in the industry, managing the fund for over 15 years now. He manages eight equity and equity-based hybrid mutual Fund along with his team. He manages over 40,000 crores of AUM. It is a good choice for investing in large-caps.
3. AXIS Bluechip Growth Fund – Launched in January 2010, it has AUM of 4000 Crores as on Feb 2019. The scheme has invested 80% of its corpus in Large-cap stocks. The portfolio has a concentrated approach with only 22 stocks.20% of its portfolio is in Cash instrument CBLO and Bank FD. The fund is holding high cash levels may be in view of volatility and as a measure of
Fund manager – Shreyas Devalkar manages few other multi caps and hybrid mutual funds. Shreyas is with Axis Mutual Fund since Nov 2016, also managed Axis Hybrid Equity till Oct 2018. He has a total experience of more than 20 years, his equity and fund management experience is over 11 years, he has worked with IDFC AMC and BNP Paribas AMC prior to joining AXIS.
4. SBI Bluechip fund – Launched in 2006, it has an AUM of over 20,000 crores. This scheme has 92.43% investment in Indian stocks of which 81.65% is in large-cap stocks, 9.92% is in mid-cap stocks, 0.86% in small-cap stocks. The fund has 0.02% investment in Debt of which, 0.02% in funds invested in very low-risk securities. It has a higher exposure in the midcap compared to its peers and deviating a bit to become a blended large-cap fund. Given its higher exposure to the mid-cap segment, it has underperformed Nifty for the 1 year period. However, in the long term, it has outperformed the index. It has the lowest portfolio turnover ratio amongst the top selected funds in this post, which makes it a little cheaper on the fund management fees. The scheme is invested in 55 stocks. Top 5 companies make for 28% of the portfolio. Top 3 sectors make it for 35% of the portfolio.
Fund manager – The scheme is managed by Sohini Andani. She also manages the SBI Magnum Midcap Fund and Banking and Financial Services sectoral Fund. She has over 20 years of experience, her flagship SBI Blue Chip Fund has beaten category average by a wide margin over in past five years returns, However, it falls short in 1 year, a 3-year category may be due to its higher dependent on Small-caps for the alpha.
5. ICICI Prudential Bluechip Fund – Launched in May 2008, it has an AUM of over Rs. 19,000 crores. One can invest in this fund with as low as Rs. 100. The portfolio of ICICI Bluechip consist of 90% in Indian stocks of which 86.31% is in large-cap, 3.62% is in mid-cap and 0.2% in small-cap stocks, it also has exposure of 4% in Equity F&O. Tracking the Nifty 50 Index, an ideal choice for 5-7 years horizon. Over 5 year and 10 year period it has 13 and 17% return on one-time investments. It is highly diversified with 61 stocks, top 5 stocks account for 28%, top 10 stocks account for 46%, top 3 sectors include Bank, Software, and oil marketing companies.
Fund Managers – Anish Tawakley and Rajat Chandak jointly managing this fund. Rajat Chandak has fund management experience of 11 years. He has started his career with ICICI Prudential AMC.
The above funds are highly recommended for first-time investors, and with SIP mode. Equity mutual funds are long term investment tool, one should stay invested in at least 5-6 years to earn maximum growth on investment.