Large-cap funds: Keeping a steady pace

Large-cap funds invest in the top 100 companies by market capitalisation, which are highly liquid and traded daily. Range: From Berger Paints (Rs 57,829 crore) to Reliance Industries (over Rs 20 lakh crore). Market coverage: With a collective market cap of Rs 271 lakh crore, these stocks cover 62 per cent of the BSE universe. Ownership: 21 per cent is held by FIIs and 17 per cent by DIIs. These funds are ideal for conservative investors seeking stability and long-term wealth creation. Highlights & trends End of an era: In April 2024, Sohini Andani of SBI Mutual Fund stepped down after a 17-year stint. New faces: Nine large-cap funds have been launched so far in 2024, eight of which were passive funds. Only Motilal Oswal AMC introduced an active fund. Performance: As of June-end, active funds gave returns of 16 per cent, outperforming the BSE 100 TRI's 14 per cent. This was mainly driven by sectors like Energy, Automobile and Services. Over a five-year SIP period, active funds look decent against the BSE 100 TRI since 2023. In 2024, the outperformers yielded about Rs 44,000 more on a Rs 10,000 SIP. Investor traction: Active funds saw Rs 5,000 crore net inflows in 2024 (as of May-end), reversing the Rs 2,500 crore outflows in 2023. Top traction is in Nippon India, ICICI Prudential, HDFC and Quant. Smart-beta funds: These factor-based funds now match the number of active funds, with momentum funds attracting half of the net inflows in 2024, up from 37 per cent in 2023. Category snapshot Parameters 2024 How many actively-managed funds? 33 Assets Rs 3.24 lakh crore Asset-weighted expense 0.81% Average expenses - Index funds 0.28% Asset-weighted category returns 14.95% Average return of top quartile funds 19.80% Average return of bottom quartile funds 12.65% Average mid & small-cap exposure 9.03% 3 most popular funds Nippon, ICICI, HDFC 3 least popular funds Axis, Mirae, ABSL Note: Returns are as of June 30, 2024. Expense and portfolio-level attributes are as of May 31, 2024. Popular funds based on net flows upto May 31, 2024. Changes in recommendation Funds moved to 'Buy': ICICI Pru Bluechip (Best Buy), Nippon India Large Cap , Aditya Birla Sun Life Nifty 50 Index, Axis Nifty 50 Index, Motilal Oswal Nifty 50 Index, Motilal Oswal Nifty Next 50 Index and Mirae Asset Nifty 50 ETF. Fund moved to 'Hold': Axis Bluechip, ITI Large Cap, Mirae Asset Equity Allocator FoF, Edelweiss Nifty 50 Index and SBI BSE Sensex Index. Funds moved to 'Sell': Axis BSE SENSEX ETF, Mirae Asset Nifty 100 Low Volatility 30 ETF and Nippon India Nifty Alpha Low Volatility 30 Index. Funds at a glance Rating 5Y SIP returns (%) Risk grade Sharpe ratio Avg. no. of stocks Expense ratio (%) Assets (Rs cr) ICICI Prudential Bluechip Fund 5 25.30 Low 1.24 71 0.90 55,459 SBI Bluechip Fund 3 21.60 Below Average 0.88 50 0.83 46,085 Mirae Asset Large Cap Fund 3 19.80 Below Average 0.74 63 0.55 37,631 HDFC Top 100 Fund