Nine large-cap schemes delivered nearly 20% annualized returns over the past 5 years
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Nine mutual fund schemes have delivered an impressive annualized return of 19% or more over the past five years. According to Morningstar data, large-cap funds as a category have achieved a five-year return of 19.23% as of October 10, 2024.
Understanding Large-Cap Funds Large-cap mutual funds are investment schemes that allocate a minimum of 80% of their assets to large-cap stocks, as per SEBI's categorization. There are currently 32 large-cap mutual fund schemes with a total asset size of ₹3.79 lakh crore. In September 2024 alone, this category saw an inflow of ₹1,769 crore.
Before investing in any mutual fund scheme, it is crucial for investors to examine its past performance relative to similar schemes in the same category. While financial advisors often caution against relying too heavily on historical returns, these figures can still significantly influence retail investors' decisions.
Top-Performing Large-Cap Funds Here are the nine large-cap mutual funds that have delivered annualized returns of 19% or more over the past five years:
Large Cap Funds 5-year Returns (%) AUM (₹ crore)
(Source: AMFI; Returns as of October 10, 2024)
The Nippon India Large Cap Fund led the pack with a return of 22.35%, while the Edelweiss Large Cap Fund posted the lowest returns among the top nine at 19.49%. On average, these top-performing large-cap mutual funds provided a return of about 20% over the past five years. This means that an investment of ₹1 lakh in these schemes five years ago would have grown to approximately ₹2.48 lakh today.
Key Takeaways When considering investments, it's essential to look at the asset size of the scheme. The largest large-cap mutual fund schemes in terms of assets are:
ICICI Prudential Bluechip Fund: ₹64,835 crore
HDFC Top 100 Fund: ₹37,522 crore
Nippon India Large Cap Fund: ₹34,187 crore
Aditya Birla Sun Life Frontline Equity Fund: ₹30,593 crore
It's important to note that while historical returns can provide an indication of a fund's performance, they do not guarantee future returns. Investors should consider a range of factors and consult with financial advisors before making investment decisions.
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