Nippon India Large Cap Fund has generated impressive returns of 28.91 per cent over a span of three years. Throughout this period, the fund’s manager, Sailesh Raj Bhan, has consistently achieved remarkable returns within the category, solidifying his position as the foremost mutual fund manager in large-cap funds, and topping the BT Portfolio Manager ranking. Since August 2007, Sailesh Raj Bhan has guided Nippon India Large Cap Fund. He also oversees two additional funds: Nippon India Pharma Fund since June 2004 and Nippon India Multi Cap Fund since March 2005. In the second and third spots were Rahul Baijal of HDFC Top 100 Fund and Anish Tawakley of ICICI Prudential Bluechip, with their funds delivering returns of 25.46 per cent and 24.05 per cent, respectively, over the three-year timeframe. According to Sebi guidelines outlining mutual fund scheme categorisation, a large-cap fund allocates a minimum of 80 per cent of its investments to stocks categorised as large-cap. These large-cap stocks constitute the top 100 companies based on their market capitalisation. The BT Portfolio Manager ranking hinges on the 3-Year Information Ratio, a metric that assesses a fund manager's ability to consistently generate surplus returns beyond the benchmark. It's calculated by dividing the mean active return (fund return minus benchmark return) by the volatility of the active return, commonly referred to as Tracking Error. Information Ratio = Mean of (Portfolio Return – Benchmark Return) Tracking Error A higher Information Ratio signifies greater consistency in a fund manager's ability to generate excess returns. The principal of Nippon India’s Large Cap Fund is to enhance portfolio stability and liquidity fund by investing in the stocks of the top 100 companies, determined by their aggregate market capitalisation. The fund’s strategy revolves around surpassing the market’s performance by handpicking the most promising index companies. It seeks to invest in well-established businesses characterized by robust and consistent free cash flows, either as leaders or potential leaders in their respective industries. In addition to this, the fund actively pursues growth-oriented companies that are reasonably valued and boast a high return on equity. Moreover, it explores the possibility of investing in emerging large-cap companies that possess proven management expertise, established business models, and the capacity to generate substantial cash flows.
