10 Most Popular Mutual Funds and the Sectors They’re Betting On

26 August 2022
14 min read
10 Most Popular Mutual Funds and the Sectors They’re Betting On
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Mutual Funds have grown in popularity among a wide range of investors. This is primarily because they provide automatic diversification and the benefits of professional management, liquidity, and customizability.

The best thing about Mutual Funds is that they enable you to invest with very small amounts. Many people ask what the minimum amount to invest in Mutual Funds is. There is no other way you can invest with reasonable diversification with an amount as low as ₹100 and even ₹50. SIP (Systematic Investment Plans) of a lot of Mutual Funds allows min investment of just ₹100 and ₹500.

The stock market is broadly divided based on market capitalization among large-cap, mid-cap, and small-cap. Market capitalization is calculated by multiplying the number of outstanding shares the company offered by the current market price of one share.

This blog will show the most popular Mutual Funds investing in different market capitalizations and sectors they are betting in.

Large-Cap Fund Category

Large-Cap are big, well-established companies in the stock market. These companies are strong, reputable, and trustworthy. Large-Cap companies generally are top 100 companies in a market. There is no consensus on capitalization as such.

Large-Cap Mutual Funds are funds that invest in large-cap equities. The following are the most popular Large-Cap Mutual Funds:

1. SBI BlueChip Fund

This Large-Cap Equity Oriented Mutual Fund was launched on February 14, 2006. It is a fund with moderately high risk.

Here are the key features of the SBI BlueChip Fund:

  • This fund has been rated as a 4-star fund by Groww and ranked 2 in the Large-Cap fund category by CRISIL.
  • AUM of close to ₹ 16480 Cr.
  • The age of the company is nearly 10 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark BSE S&P 100 since its launch.
  • The top portfolio holdings of the fund include SBI, HDFC Bank Ltd., ITC, Mahindra & Mahindra Ltd., HPCL, Hero MotoCorp Ltd., IndusInd Bank Ltd., Larsen & Toubro Ltd., CBLO (CCIL), etc.

This fund is one of the most popular Large-Cap funds available in the market. But, returns from this Large-Cap fund are lesser as compared to another popular fund in this category.

Sector Allocation-

Financial

27.09%

Automobile

11.84%

Technology

8.70%

Healthcare

7.26%

Construction

6.68%

Others

38.43%

So, if you are thinking of investing a lump sum amount or for a longer duration, this Large-Cap fund is just the perfect choice for you. Large-Cap funds may give you good returns on your lump sum investment over the long term.

The companies in the Large-Cap fund’s portfolio are steady compounders and pay dividends regularly.

2. Mirae Asset India Opportunities Fund

This Large-Cap Equity Oriented Mutual Fund was launched on April 04, 2008. It is a fund with moderately high risk.

Here are the key features of Mirae Asset India Opportunities Fund:

  • This fund has been rated as a - star fund by Groww.
  • AUM of close to ₹ 6123 Cr.
  • The age of the firm is nearly 10 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE 200 Fund since its launch.
  • The top portfolio holdings of the fund include ICICI Bank Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., SBI, Infosys Ltd., Maruti Suzuki India Ltd., Kotak Mahindra Bank Ltd., Grasim Industries Ltd., etc.

Sector Allocation-

Financial

27.09%

Automobile

11.84%

Technology

8.70%

Healthcare

7.26%

Construction

6.68%

Others

38.43%

This fund is one of the best Large-Cap funds available in the market. Associate with this fund, if you are thinking of investing a lump sum amount or a longer duration.

Large-Cap funds may give you good returns on your lump sum investment over the long term. The companies in the Large-Cap fund’s portfolio are steady compounders and pay dividends on a regular basis.

3. Reliance Top 200 Fund

This is a Large Cap Equity Oriented Mutual Fund launched on August 08, 2007. It is a fund with moderately high risk.

 Here are the features of Reliance Top 200 Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • AUM of close to ₹ 4149 Cr.
  • The age of the firm is nearly 10 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE 200 Fund since its launch.
  • The top portfolio holdings of the fund include Divis Laboratories Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., IOCL, SBI, Infosys Ltd., ITC Ltd., Tata Steel Ltd., Axis Bank Ltd., etc.

Sector Allocation-

BFSI

24%

Automobile

10%

Engineering

20%

IT

10%

Oil & Gas

10%

Others

26%

This fund is one of the best Large-Cap funds available in the market. So, if you are thinking of investing a lump sum amount or for a longer duration, this Large-Cap fund is just the perfect choice for you.

Large-Cap funds may give you good returns on your lump sum investment over the long term. The companies in the Large-Cap fund’s portfolio are steady compounders and pay a dividend on a regular basis.

Mid-Cap Fund Category

Mid-Caps are compact companies in the equity market, falling somewhere between small and large-cap companies, and are 100-250 companies in a market after large-cap companies.

Stocks of mid-cap companies are riskier than Large-Cap but not as risky investment instruments as Small-Cap funds investing in equities of the Mid-Cap are Mid-Cap Mutual Funds. These are the most popular Mutual Funds in the Mid-Cap category:

1. Aditya Birla Sun Life Small & Midcap Fund

This is a Mid Cap Equity Oriented Mutual Fund launched on May 31, 2007. It is a fund with high risk.

Here are the key features of Aditya Birla Sun Life Small & Midcap Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • The age of the firm is nearly 10 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Cyient Ltd., CBLO (CCIL), Chennai Petroleum Corporation Ltd. etc., DCB Bank Ltd., Gujarat State Petronet Ltd., KEC International Ltd., PNC Infratech Ltd. etc.

Sector Allocation-

Financial

18.44%

Chemicals

11.46%

Healthcare

9.19%

Capital Goods

8.14%

Consumer Discretionary

6.88%

Others

45.89%

This is one of the best-performing mid-cap funds available in the market for 2018. Mid-Cap funds are in high demand because the share price of Large-Caps has increased substantially. That results in the prices of the Mid-Caps, climbing upwards steadily and making them an attractive investment category with high growth potential.

Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of Large-Cap funds.

2. L&T Midcap Fund

This is a Mid Cap Equity Oriented Mutual Fund launched on August 09, 2004. It is a fund with high risk.

Here are the key features of L&T Midcap Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • The age of the firm is nearly 13 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Mphasis Ltd., CBLO (CCIL), The Ramco Cements Ltd., Emami Ltd., Mindtree Ltd., Engineers India Ltd., Jindal Steel and Power Ltd., Sundaram Finance Ltd. etc.

This is one of the best performing Mid-Cap funds available in the market for 2018. The mid-Cap fund is in high demand because the share price of large caps has increased substantially. That results in the prices of the Mid-Caps, climbing upwards steadily and making them an attractive investment category with high growth potential.

Sector Allocation-

Healthcare

13.13%

Services

12.40%

Financial

12.04%

Capital Goods

10.16%

Chemical

8.36%

Others

43.91%

Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of Small-Caps and index-related returns like those of Large-Cap funds.

3. Mirae Asset Emerging BlueChip Fund

This is a Mid-Cap Equity Oriented Mutual Fund launched on July 9, 2010. It is a fund with moderately high risk. 

Here are the key features of Mirae Asset Emerging BlueChip Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • The age of the firm is nearly 7 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Tata Global Beverages Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Raymond Ltd., HDFC Bank Ltd., Federal Bank Ltd., Info Edge Ltd., IndusInd Bank Ltd., Ceat Ltd. etc.

This is one of the best performing Mid-Cap funds available in the market right now. This is a diversified fund with holding in companies of different market capitalization.

Sector Allocation-

IT

9.72%

Pharmaceuticals & Drugs

7.51%

Bank

5.44%

Refineries

4.77%

Household & Personal Products

3.92%

Finance

3.88%

Oil Exploration

3.46%

Telecommunication

3.34%

Cigarettes/Tobacco

3.10%

Multi-Cap funds are risky as compared to large cap funds and depend a lot on the ability of a fund manager. Associated with this fund for some good numbers of years for getting the benefit of its high return on investment.

Small Cap Fund Category

Small-Caps are small companies of the stock market and are all the companies apart from large and Mid-Cap companies in a market. Stocks of Small-Cap companies are highly risky and volatile investment instruments.

Funds investing in equities of mid cap are Small-Cap Mutual Funds. These are the most popular Mutual Funds in Small-Cap category:

1. HDFC Small-Cap Fund

This is a Small-Cap Equity Oriented Mutual Fund launched on April 03, 2008. It is a fund with high risk.

Here’s the key features of HDFC Small-Cap Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • The age of the firm is nearly 10 years. So, its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Small cap 100 since its launch.
  • The top portfolio holdings of the fund include Sonata Software Ltd., CBLO (CCIL), Redington India Ltd., Aarti Industries Ltd., KEC International Ltd., Dilip Buildcon Ltd., Balkrishna Industries Ltd. etc.

Sector Allocation-

Services

21.42%

Capital Goods

11.40%

Financial

10.17%

Chemicals

10.25%

Consumer Discretionary

5.60%

Others

 41.16%

These funds have exponential growth potential and give high returns on investment and is best suited for investors with high-risk appetite or for seasoned investors.

Also, this is best for investors who have very good ideas of mutual funds and the risks associated with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

2. L&T Emerging Businesses Fund

This is a Small Cap Equity Oriented Mutual Fund launched on May 12, 2014. It is a fund with high risk.

Here’s the key features of L&T Emerging Businesses Fund:

  • This fund has been rated as a 5-star fund by Groww.
  • The age of the firm is nearly 3 years. So, its performance can be difficult to judge on a longer run. Though it’s a relatively new fund, it has made its mark with high return on investment.
  • Has consistently outperformed its benchmark S&P BSE Small Cap since its launch.
  • The top portfolio holdings of the fund include Sobha Ltd., CBLO (CCIL), Rane Holdings Ltd., Aarti Industries Ltd., Future Supply Chain Solutions Ltd., Dilip Buildcon Ltd., IPCA Laboratories Ltd., Nocil Ltd. etc.

Sector Allocation-

Materials

14.64%

Capital Goods

13.66%

Metals & Mining

12.20%

Construction

9.50%

Consumer Staples

7.38%

Others

 42.62%

These funds have exponential growth potential and give high returns on investment and are best suited for investors with high-risk appetite or for seasoned investors. This is a new fund and has performed really well, giving more than expected return in the last 3 years.

Also, this is best for investors who have very good ideas of Mutual Funds and the risks associated with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

  • Multi-Cap Fund Category

Multi-Cap funds are good to start investing in equities for beginners. Because of the flexibility of investing in all types of companies irrespective of size, the fund manager can generate better risk-adjusted returns. These are the most popular Mutual Funds in Small-Cap category:

1. Motilal Oswal MOSt Focused Multi-Cap 35 Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on April 28, 2014. It is a fund with moderately high risk.

Here are the key features of Motilal Oswal MOSt Focused Multi-Cap 35 Fund:

  • This fund has been rated as a 5-star fund by Groww and ranked 1 in Diversified equity category by CRISIL.
  • Launched just 3 years back, so performance cannot be easy to judge. Though it’s a relatively new fund, it has made its mark with high return on investment.
  • Has consistently outperformed its benchmark Nifty 500 since its launch.
  • The top portfolio holdings of the fund include United Spirits Ltd., BPCL, HDFC Bank Ltd., Maruti Suzuki India Ltd., HPCL, Jubilant Life Sciences Ltd., Interglobe Aviation Ltd., etc.

Sector Allocation-

Financial

32.95%

Energy

3.11%

Capital Goods

3.72%

Technology

14.9%

Construction

6.14%

Others

0.72%

Healthcare

6.91%

Services

3.76%

This is one of the best performing Multi-Cap funds available in the market right now, even though it launched just 3 years back. This is a diversified fund with holding in companies of different market capitalization.

Multi-Cap funds are risky as compared to Large-Cap funds and depend a lot on the ability of the fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

2. DSP BlackRock Opportunities Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on May 16, 2000. It is a fund with moderately high risk.

Here’s the key features of DSP BlackRock Opportunities Fund:

  • DSP BlackRock Opportunities Fund has been rated as a 5-star fund by Groww and ranked 2 in Diversified fund category by CRISIL (for quarter ending December 2017).
  • Has consistently outperformed its benchmark Nifty 500 since its launch.
  • The top portfolio holdings of the fund include SBI, HDFC Bank Ltd., ICICI Bank, CBLO (CCIL), Gail (India) Ltd., HPCL, BPCL, Larsen & Turbo Ltd., Tata Steel Ltd., Divis Laboratories Ltd., Vedanta Ltd. etc.

DSP BlackRock Opportunities Fund is one of the best-performing Multi-Cap funds in the market today. With returns that are competitive with other Multi-Cap funds and an experienced fund manager.

Sector Allocation-

Financial

31.72%

Automobile

9.22%

Technology

8.44%

Energy

7.89%

Healthcare

7.82%

Construction

7.3%

Chemicals

5.86%

Consumer Staples

3.51%

Insurance

3.14%

Capital Goods

2.91%

This is a diversified fund with holding in companies of different market capitalization. Multi-Cap funds are risky as compared to large cap funds and depend a lot on the ability of the fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Things to Remember

Returns have always been the basic benchmarks for investors while going for any investments. These indicate how much the fund has lost or gained during a particular investment duration. But, don’t just run for returns from investment for investing in Mutual Funds.

There are a lot of things you should look into before selecting a fund which will match your investment goals. Following the 3 things you should always remember before investing in Mutual Funds:

  • Higher Rates: Don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.
  • Every person’s financial condition is different. Evaluate the funds you invest in yourself – Don’t invest in a fund because of its popularity.
  • Review your investment from time to time but not too often. Once a few weeks is good enough.

If you are a beginner to investment in mutual funds, especially in equity mutual funds, thinking of the small/mid cap mutual funds may not be the best idea for you. These are best for investors who have very good ideas of mutual funds and the risks associated with them.

To ensure that the fund is in good hands, choose a fund house having a fund manager with a good amount of experience managing Small/Mid-Cap funds and associated with these funds for some good number of years.

Conclusion

So, this blog was all about the top mutual funds and the major sectors they bet on. It is essential to consider everything before you pick the mutual funds for your investment. Make you take into account all the necessary details and then invest your hard-earned money as per the market conditions and the fund's performance.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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