Mutual funds serve as a pool of various stocks and securities that can help investors in the diversification of their investments. Out of various types of mutual funds, large-cap mutual funds are a safe and more reliable option for investors who wish to earn stable returns over a long period. With investments in financially stable companies with a good track record, large cap mutual funds are known for their better return-generating capability with low risk.
Following are some types of large-cap mutual funds that investors can explore:
1. Blue Chip Mutual funds
As evident from its name, The Blue Chip Mutual Funds include stocks of Companies that come within the purview of Blue Chip companies. These are financially stable companies with a large capitalization. Reliance, Tata Steel, Titan Axis Bank, and ICICI Bank are some popular Blue Chip companies that are included in Blue Chip Mutual Funds. Stable returns with the ability to handle market volatility make Blue Chip Mutual Funds the best risk-averse investors.
2. Growth Funds
The growth fund includes stocks of companies that can grow and upscale themselves in a highly competitive market. Companies with better earnings, working in a market with limited competition and growth sector are included in the growth mutual fund. Information technology, healthcare, and even power generation are some sectors that are included in the Growth Mutual Funds.
3. Index funds
Index funds are also other forms of large-cap mutual funds. Comprising stocks included in Sensex and Nifty 50, the index funds allow investors to invest in Companies that have growth potential with large capitalization. Companies with stable earnings with a good opportunity to improve overall performance are included in the index funds or the large-cap mutual funds.
Following are some popular large-cap mutual funds in India that investors can explore:
1. Mirae Asset Large cap mutual fund
The Mirae Asset Large cap mutual funds include companies that are stable and have large capitalization. Including stocks from both the growth and value sectors, The Mirae Asset Large-Cap Mutual Fund is a perfect option for investors looking for good returns in the long run.
2. Axis Bluechip Mutual Fund
Comprising stocks of companies that possess significant growth potential, the Axis Blue Chip Mutual Fund can generate good returns on a long-term basis. Significant returns with and the ability to manage market volatility and risk, access to Bluechip Mutual Fund reduces the risk associated with losing the investment with great potential to generate returns in a volatile Market.
3. HDFC top 100 fund
The HDFC top 100 fund is comprised of the best 100 companies with large capitalization, growth, stable profits, and other potential benefits. With reliable returns, Investors can even diversify their risk and even invest in companies with growth potential.
Investment in large cap mutual funds can prove beneficial for investors who opt for long-term investing through SIPs. Investors can opt for risk diversification through investment in large cap mutual funds for protection in times of market volatility. With various options of large-cap mutual funds available, investors can select the best that fits within their risk profile and overall mutual fund investment strategy.