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Large Cap Fund: Do you know which of the large cap funds considered to be the safest in the market has performed strongly. In this matter, Nippon India has set a flag in 5 years and has given returns of more than 22 percent.
New Delhi. Those investing in stock market and mutual funds always need such options which can give explosive returns. Large cap funds are generally trusted by investors, but Nippon’s large cap fund has done wonders in the last 5 years. This fund has given returns of more than 18 percent in 3 years and more than 22 percent in 5 years. This is the reason why investors are continuously betting on it and today this fund has joined the elite group.
According to a report, Nippon India Large Cap Fund has entered the Asset Under Management (AUM) club of Rs 50,000 crore. Now this fund has joined the list of large cap funds of ICICI Prudential and SBI, whose assets under management (AUM) are more than Rs 50,000 crore. This achievement has been achieved despite lower inflows into equity mutual funds, mainly due to profit-booking after the recent market rally and the impact of increased liquidity needs during the festive season.
Why are large cap funds safe?
Large cap mutual funds are considered a safe investment option for new and risk-averse investors. The reason for this is the investment portfolio of these funds. Large cap funds have strong business models and generally invest in leading blue chip companies in their respective sectors. Therefore, compared to mid and small cap mutual funds, these funds are naturally more stable and resilient to economic recession and market fluctuations.
Also at the forefront in giving returns
Statistics show that large cap mutual funds have performed brilliantly in the last few years. Nippon India Large Cap Fund topped the category, giving returns of 18.46% in the last 3 years and 22.43% in the last 5 years. Over the same period, ICICI Prudential Large Cap Fund has given returns of 17.46% in 3 years and 19.98% in 5 years, while Invesco India Large Cap has given returns of 16.68% in 3 years and 17.67% in 5 years.
What is the secret of success
The main reason for the success of Nippon India Large Cap Fund is that it follows the principle of investment rather than indexing, where the fund manager strives to outperform the benchmark index, thereby ensuring growth at a fair price. The base of the fund is Nippon’s renowned research stock and the investment mix is derived from here. Market experts believe that large cap mutual funds are the backbone of mutual fund investing as they provide relatively stable and consistent returns and potentially regular dividends over the long term.
