Large Cap Funds should form a core part of investors portfolio as they provide stability during a downturn with a good compounding growth over the long term. Over a ten-year period, Large Cap category has delivered 13.51% compound annual growth rate as of April 11, 2022.
Large Cap Funds invest 80% of their assets in the top 100 companies by market capitalisation. There are 32 actively managed Large Cap Funds in the industry.
Our analysts have recently covered three Large Cap strategies which you can consider for your portfolio.
ICICI Prudential Bluechip Fund
- Star Rating: 4 stars
- Analyst Rating: Bronze (Regular Plan), Silver (Direct Plan)
- Date of Analysis: April 2022
- Morningstar Analyst: Nehal Meshram
- Fund Performance: 9.77% (2019), 13.49% (2020), 29.17% (2021), 14.64% (since inception as of April 11, 2022)
- Fund Manager: Priyanka Khandelwal, Anish Tawakley, Vaibhav Dusad
- Investment Style: Large Blend
- Equity Holdings: 69
- % of assets in top 10 holdings: 57
- Top 5 holdings: ICICI Bank, HDFC Bank, Infosys, Reliance Industries, Bharti Airtel
Fund manager Anish Tawakley has a quality bias when picking stocks and uses the firm's in-house large-cap model portfolio as an initial reference point. The managers combine qualitative filters with quantitative financial forecasts to identify the best picks within the sector. They ply a benchmark-conscious approach and align the portfolio's sector weights to those of the benchmark (IISL Nifty 100 Index), within a range of plus or minus 5%. A rigourous focus on valuation and risk ensures the portfolio performs strongly through the cycle. While constructing the portfolio he follows a barbell approach; He either pays more for high-growth stocks or focuses on fundamentally strong companies at attractive valuations.
Aditya Birla Sun Life Frontline Equity Fund
- Star Rating: 3 stars
- Analyst Rating: Gold (Regular and Direct Plan)
- Date of Analysis: April 2022
- Morningstar Analyst: Kavitha Krishnan
- Performance: 7.64% (2019), 14.22% (2020), 27.90% (2021), 19.75% (since inception as of April 11, 2022)
- Fund Manager: Mahesh Patil
- Investment Style: Large Blend
- Equity Holdings: 71
- % of assets in top 10 holdings: 50
- Top 5 holdings: ICICI Bank, HDFC Bank, Infosys, Reliance Industries, Bharti Airtel
Fund manager Mahesh Patil studies macroeconomic factors such as the domestic interest-rate cycle, government policies, and developments in the global economy to determine the sector overweight/underweight positions. Having said that, a benchmark-aware approach leads to a portfolio that does not reflect significant over\underweights. Patil considers the fund house’s investment universe and the IISL Nifty 50 Index when constructing the portfolio. Typically, he will invest in companies that display strong earnings growth potential, while focusing on parameters such as Return on Equity (ROE) and Return on Capital Employed (ROCE). Patil makes use of relative valuation measures, such as price/earnings, price/book value, and EV/EBITDA vis-a-vis comparable peers when selecting stocks.
Kotak Bluechip Growth
- Star Rating: 4 stars
- Analyst Rating: Neutral (Regular Plan) Bronze (Direct Plan)
- Date of Analysis: January 2022
- Morningstar Analyst: Kavitha Krishnan
- Performance: 14.20% (2019), 16.37% (2020), 27.74% (2021), 18.34% (since inception as of April 11, 2022)
- Fund Manager: Harish Krishnan
- Investment Style: Large Growth
- Equity Holdings: 57
- % of assets in top 10 holdings: 46
- Top 5 holdings: ICICI Bank, HDFC Bank, Infosys, Reliance Industries, Tata Consultancy Services
Fund manager Harish Krishnan follows a growth-at-a-reasonable price strategy and uses the model portfolio created by the analyst team as his initial reference point while choosing stocks. He applies a qualitative overlay on it, investing in sector leaders--defined as the top two businesses in each sector in terms of revenue, market cap, or margin profile. Krishnan focuses on long-term sector/stock bets and avoids trading/momentum calls. While Krishnan considers the benchmark-consciousness to be a form of discipline, we believe it has a limiting effect, too. For instance, the process leads to a strategy that stays invested in benchmark heavyweights irrespective of the manager’s conviction levels. The process can aid the fund in a downturn. But on the flip side, the lower allocation to nonbenchmark stocks can result in the fund underperforming in other market conditions.
Portfolio holdings as of March 2022.
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