Well-Rated Large-Cap Equity Mutual Funds To Invest For 2022 And Beyond

Equity mutual funds have done well over the last few years and investors have reaped good returns, thanks to a surge in the markets. However, given the way the stock markets have gained one cannot expect similar returns of the past. Here are some well rated mutual funds that have a good track record and could do well in the future.

IDBI India Top 100 Equity Fund

This fund has been rated No1 by Crisil in the large-cap category, which is the highest rating by Crisil, one of India's top credit rating agency. The growth plan under the IDBI India Top 100 Equity Fund is available at Rs 38.18.

The minimum investment needed is Rs 1,000 to commence an SIP. IDBI India Top Equity Fund has stocks like HDFC Bank, Reliance Industries, ICICI Bank and Infosys in its portfolio. While we have written on these well rated equity funds, we are not recommending any of these and only highlighting the ratings. The reason for this is that mutual fund performance is rather dynamic and what looks good today, may not be the case tomorrow. We believe that the stock markets are over priced and investors should not have heavy exposure to equity mutual funds by way of lumpsum. SIPs is a better strategy to go with.

The 3-year returns from the fund has been 19.77% on an annualized basis, while the 5-year returns has been 14.67% on an annualized basis.

Kotak Bluechip Fund

This fund also has been rated No 1 by Crisil. Again, a good and consistent mutual fund performer over the last 1-year. The fund has generated returns of 19.52% in the last 3-years and 15.83% in the last 5-years. Investors who have plans to invest for 3 years or more could consider this fund.

It is also imperative to remember that past track record is no indication of future performance. Most of the mutual funds have the same set of stocks in their portfolio especially the top 5 are normally HDFC Bank, Infosys, Reliance Industries, ICICI Bank etc. Hence, the performance of most of the large cap equity mutual funds do not vary much.

Investors have the option to also invest through the SIP route in the Kotak Bluechip Fund, which is a better option.

Axis Bluechip Fund

The Axis Bluechip Fund has been rated 5-star by Morningstar as well as Value Research. In fact, we have been seeing these ratings for a long-time now. This fund has been a consistent performer from the large cap space. The portfolio includes name like Bajaj Finance, ICICI Bank, HDFC Bank etc.

This fund makes sense for those who are long term investors. However, since the stock markets have had a prolific rally over the last 1-year, the returns are massive over the last 1 and three years. To expect similar kind of returns in the future would be expecting too much. Stocks at the moment are expensive and returns could be more tempered going forward.

Disclaimer

Investing in equity mutual funds is risky and investors are advised caution. Invest only if you have an appetite to take risk. Please be informed neither Greynium Information Technologies Pvt Ltd nor the author are liable for any losses caused as a result of decisions based on the article.