This festive season, shop for these mutual funds to get at least 30% returns in one year

Large-cap schemes are considered highly desirable investment options in the financial market. According to many mutual fund advisors, the large-cap category stands out as a potential performer during periods of market volatility. In September, the equity fund segment displayed an average return of up to 5%.

Large-cap schemes cater to investors seeking a conservative approach even amid market turbulence. In September, the large-cap funds provided an average return of 3.24%. There were a total of 32 funds within this category during that period.

These schemes predominantly invest in the top 100 stocks, offering a safer alternative compared to other pure equity mutual fund options. They are characterized by lower volatility when compared to mid-cap and small-cap schemes. In a volatile market, large companies tend to outperform due to their market leadership and resilience to economic downturns. As such, investing in large-cap funds could be a wise choice for those seeking a more stable mutual fund category. To sum up, opting for large-cap schemes would be ideal if you prioritise moderate returns alongside stability.

Here are 6 schemes one can opt to invest in this festive season:

1. Canara Robeco Bluechip Equity Fund

The Canara Robeco Bluechip Equity Fund Direct-Growth, established in 2013, currently has assets under management of Rs 14,870 crores as of 30/09/2024. With an expense ratio of 0.45%, which is lower than the industry average for large-cap funds, this fund has proven to be a valuable investment option. Over the past year, it has provided impressive returns of 37.25%, and since inception, it has maintained an average annual return of 16.28%. One notable highlight of this fund is its ability to potentially double the invested capital every 4 years.

In terms of portfolio allocation, the Canara Robeco Bluechip Equity Fund Direct-Growth has a significant portion of its investments in the Financial, Technology, Healthcare, Automobile, and Energy sectors. It has a relatively conservative approach towards its exposure to Financial and Technology sectors compared to its competitors in the same category. The fund's top 5 holdings include companies such as HDFC Bank Ltd., ICICI Bank Ltd., and Reliance Industries, Infosys Ltd., Bharti Airtel Ltd.

Period    This fund    Category average
1 year    36.43%            36.83%
3 years    15.29%            15.54%
5 years    21.84%            20.25%
10 yrs    16.11%            14.84%

2.  Axis Bluechip Fund Direct Plan-Growth

Axis Bluechip Fund Direct Plan-Growth, a medium-sized fund in its category, currently manages assets worth Rs 35,452 Crores as of 30/09/2024. Over the past 1 year, the fund has shown returns of 32.65% and since its launch, it has delivered an average annual return of 15.89%. The fund has the impressive track record of doubling invested money every 4 years.

The majority of Axis Bluechip Fund Direct Plan-Growth's portfolio is allocated to Financial, Services, Technology, Automobile, and Energy sectors. This fund has taken a comparatively lower exposure to Financial and Services sectors compared to its peers. The fund's top 5 holdings include HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., and Bajaj Finance Ltd.

Period      This fund    Category average
1 year      31.62%    36.83%
3 years      9.86%            15.54%
5 years      16.28%    20.25%
10 yrs      14.58%    14.84%

3. Edelweiss Large Cap Fund Direct-Growth

Edelweiss Large Cap Fund Direct-Growth, a mutual fund managed by Edelweiss Asset Management Limited, currently holds assets under management (AUM) worth Rs 1,081 crores as of 30th September 2024. This fund boasts an expense ratio of 0.68%. Over the past year, Edelweiss Large Cap Fund Direct - Growth has shown impressive returns of 37.93%. Since its inception, this fund has maintained an average annual return of 16.40%, indicating its consistent performance. Notably, it has a track record of doubling the invested capital every 4 years.

In terms of portfolio allocation, Edelweiss Large Cap Fund Direct - Growth has a significant portion of its investments in sectors such as Financial, Automobile, Energy, Technology, and Healthcare. However, it has maintained a relatively lower exposure to the Financial and Automobile sectors compared to other funds within the same category.

The fund's top 5 holdings include prominent companies such as ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., and Larsen & Toubro Ltd., reflecting a diversified selection of leading market players in various sectors.

Period     This fund    Category average
1 year     37.44%            36.83%
3 years     17.43%            15.54%
5 years     21.51%            20.25%
10 yrs     15.56%            14.84%

4. Mirae Asset Large Cap Fund Direct-Growth

The Mirae Asset Large Cap Fund Direct-Growth has assets under management (AUM) totaling Rs 41,593 crores as of 30/09/2024. The fund maintains a low expense ratio of 0.53% and holds a significant 98.4% of its investments in domestic equities. Within this allocation, 67.54% is in Large Cap stocks, 9.05% in Mid Cap stocks, and 3.5% in Small Cap stocks.

Over the last 1-year period, Mirae Asset Large Cap Fund Direct- Growth has achieved returns of 30.28%, showcasing its strong performance. Since its launch, the fund has delivered an average annual return of 17.50% and effectively doubled the invested amount every 4 years.

The fund strategically allocates its resources across various sectors, with a focus on Financial, Technology, Energy, Services, and Healthcare. It notably maintains a comparatively lower exposure to the Financial and Technology sectors when compared to other funds in the same category. The top 5 holdings of the fund include HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Axis Bank Ltd., reflecting its diversified portfolio within the market.

Period    This fund    Category average
1 year    30.16%            36.83%
3 years    12.73%            15.54%
5 years    19.12%            20.25%
10 yrs    15.7%            14.84%

5. Baroda BNP Paribas Large Cap Fund Direct-Growth

Baroda BNP Paribas Large Cap Fund Direct-Growth is a mutual fund with assets under management (AUM) amounting to Rs 2,343 crores as of September 30, 2024. The fund boasts an expense ratio of 0.83% and primarily invests in domestic equities, with 93.84% of its portfolio dedicated to this asset class. Within domestic equities, the fund allocates 66.81% to Large Cap stocks, 10.66% to Mid Cap stocks, and 1.18% to Small Cap stocks.

Over the last year, Baroda BNP Paribas Large Cap Fund Direct-Growth has delivered impressive returns of 44.29%. Since its inception, the fund has maintained an average annual return of 17.32% and has a track record of doubling the invested capital every 4 years. The majority of the fund's investments are concentrated in sectors such as Financial, Energy, Automobile, Technology, and Services, with a strategic underweight position in the Financial and Energy sectors compared to other funds in the same category.

The top 5 holdings of Baroda BNP Paribas Large Cap Fund Direct-Growth include ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., and Tata Consultancy Services Ltd..

Period    This fund    Category average
1 year    43.81%            36.83%
3 years    18.5%            15.54%
5 years    21.56%            20.25%
10 yrs    15.83%            14.84%

Disclaimer: Business Today provides market and mutual fund news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.