Curated By: Business Desk
Last Updated: September 14, 2023, 20:47 IST
Nippon’s large-cap funds have delivered 20% return.
Large-cap funds are considered to be giving high returns and have an excellent track record of generating wealth for investors in the long run.
Mutual funds, a favoured financial instrument for investors, facilitate the pooling of funds to maximise returns, though they are directly linked to market volatility. In recent years, large-cap mutual funds, traditionally known for their stability, have faced sluggish growth. However, a resurgence in the performance of large-cap funds has been noticed this year with these funds offering attractive returns amid challenging market conditions.
Large-cap funds, a category of equity funds, primarily invest in top-tier companies with substantial assets. Renowned for their stellar track record in long-term wealth creation, these funds are considered reliable choices for investors seeking stability and growth.
Amid the broader economic landscape, this year a higher return has been noticed in large-cap mutual funds, with some notable performers leading the pack. The Nippon Large Cap Fund, for instance, has delivered an impressive 20.07% return within a year. Following closely, the HDFC Large Cap Fund has generated returns of 16.6%, while Edelweiss Large Cap Fund has given returns of 14.9%.
The Nippon fund, established on August 8, 2007, has delivered a remarkable 561.6% return since its inception, surpassing its benchmark by 27% over eight years. In comparison, HDFC Top 100 and Edelweiss Large Cap have produced returns of approximately 24.7% and 22%, respectively.
The large-cap funds boast a solid track record of investing in established companies with robust business models and growth strategies, positioning them as leaders in the investment arena.
Several factors contribute to the renewed appeal of large-cap funds. The credibility and reputation of large-cap companies translate into more stable and higher revenues. In a post-COVID-19 world, as the economy stages a recovery, investors are increasingly turning to mutual funds, particularly large-cap funds.
The tech sector’s meteoric rise has also helped large-cap mutual funds, bolstering their capacity to deliver stable returns. These funds are known for their resilience against market fluctuations and typically exhibit lower volatility compared to small or mid-cap investments.