Funds in this category have a large cap bias along with a limited exposure to mid and small cap stocks which perfectly suits those who are averse to wide fluctuations in their investment returns.
While large cap allocation of these funds provides downside protection to the portfolio, exposure to mid and small cap stocks gives it an extra edge to generate superior returns.
Here are India's finest funds in the large and mid cap space:
Birla Sun Life Frontline Equity
This fund invests in the universe of BSE 200 stocks and broadly follows its sector weightings. This enforces portfolio diversification across market cycles. This makes the fund more stable than its peers in both bull and bear markets. The fund's disciplined approach with modest flexibility to emphasise sectors and stocks in its portfolio has helped it beat the benchmark consistently. The fund takes a cash call only during extreme occasions. An attractive fund for investors seeking growth from a diversified portfolio and predictable strategy.
Canara Robeco Equity Diversified
This fund consistently does well across market cycles compared
to its benchmark and peers which is in line with its stated goal
of long-term capital appreciation. A blend of growth and value style of investing in quality mid-cap stocks aids the fund in posting consistent returns. A well diversified portfolio and
higher allocation to defensives during the economic slowdown has aided the performance, making it a suitable choice for long-term investment.
ICICI Prudential Dynamic
This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.
Mirae Asset India Opportunities
The scheme manages to sail through the market ups and down with equal ease as it has delivered good returns irrespective of the market cycle. The fund's goal is to identify future growth trends at an early stage and focus on companies which have strong pricing power and are sector leaders. It follows a flexible investment strategy across sectors, market caps, themes and style to achieve the same, which is reflected in its consistent performance over the past five years.
Quantum Long Term Equity
This fund does well when the markets fall and posts an above-average performance when they are rising. The fund follows a buy and hold approach to attractively valued stocks which has been the highlight of its performance. The fund's low-cost advantage further adds to its performance. A conservative value based investing style with portfolio diversification and liquidity makes it a good choice for all those investors looking for a low risk and consistent option in this space.
UTI Equity
This fund has a chequered past, but has done very well in recently. The fund follows a high large-cap exposure, which has helped in its performance during uncertain times such as now, where large-caps provide greater visibility to revenue and earnings growth. Further, reduced equity exposure and increased debt and cash holdings during prolonged falls have also helped in containing losses, making it a good choice for investors looking for a low-risk long-term option.
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