Large Cap Funds should always constitute to be the core of any portfolio. At least 33% of the equity portfolio should be parked in Large Cap Funds. Some of the important factors when selecting a large cap fund should be as under:
• Track Record of the fund – The fund should have a minimum track record of 5 years
• Assets under Management – The AUM of the fund should be a minimum of 1000 Crores
• Consistency of performance – Fund should have performed consistently in the past years.
• Quality of Management – The Fund Management Company, Fund Manager, processes etc should be of very good quality.
Based on the above parameters, MyWealthClub.com recommends following Funds for investment:
• HDFC Top 200 Fund
• Franklin India Bluechip Fund
Performance analysis of the above funds with some other peer funds of the category is as under:
Scheme 1Y* 2Y* 3Y* 5Y* MyWealthClub Rating
HDFC-Top 200Fund-(G) 20.28 4.93 10.06 8.61 *****
Franklin India Bluechip Fund (G) 19.33 6.44 10.04 7.28 *****
Birla SL - Frontline Equity Fund (G) 26.62 7.05 9.26 7.31 ****
DSP BlackRock - Top 100 Equity Fund (G) 17.07 5.83 8.53 6.64 ****
Reliance - Vision Fund (G) 12.23 0.41 3.6 1.09 ***
*As on 24/1/13 ** Returns for more than 1 year are annualized
• Fresh funds should be deployed in HDFC Top 200 Fund and Franklin India Bluechip Fund.
• Investors of Birla SL Frontline Equity Fund and DSP BR Top 100 Equity fund should stay invested and watch the fund performance for one more year.
• Investors of all other large cap funds should exit when the funds are exit load free and replace the same with HDFC Top 200 Fund and Franklin India Bluechip Fund.
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