I want to invest in the large cap fund by HDFC.Asked
HDFC offers two mutual funds in the large cap category:
These funds have not performed as well as the other large cap funds available in the market. You can look at some of the other large cap funds which have shown better returns in the past
Investments should be done in the best scheme available in the market and not on the basis of fund house.
You can check out other large cap funds by clicking here
There are quite a few options that meet your requirements. HDFC Large Cap Fund - Growth, HDFC Capital Builder Fund - Growth, and HDFC Long Term Advantage Fund - Growth are a few.
HDFC Large Cap Fund - Growth is a fund that aims at generating long term capital appreciation from a portfolio that is predominantly in equity and equity related instruments. It has outperformed its benchmark, Nifty 500, consistently. The exit load, i.e., the fees that you need to pay to the fund house upon exiting the fund is zero. This helps the investor to maximize his returns. The 3 year annualized rate of return from the scheme stands at 12.97%.
You may also consider investing in HDFC Capital Builder Fund - Growth, another fund that invests in predominantly large and mid cap companies. The 3 year annualized rate of return from the fund is 14.08% and the fund has consistently outperformed its benchmark - be it over a period of 3 years, 5 years or 10 years. As of September 30, 2017, the fund had Assets under Management (AUM) worth ₹2,70,046 crore and was ranked 2 as per total assets.
HDFC Long Term Advantage Fund is similar to HDFC Capital Builder Fund - Growth, except that the annualized return was almost 13.00%, as against Nifty 500's 11.10% p.a. One key distinguishing factor is that investment upto ₹ 1.5 lac will be tax free under section 80C of Income Tax Act, 1961. Returns will also be tax free. Investments are subject to lock in period of 3 years.
You can contact Groww for a detailed discussion about investing your money in a fashion that best meets your investment objective and criteria.
One should not restrict to a fund house when choosing a fund. This makes sure you dont get biased by a fund house. And invest in the best scheme - no matter what fund house it is.
Below link, you can find all the large-cap funds sorted based on their rating. You can choose the ones with a 5-star rating.
HDFC large-cap fund - the Asset under management(AUM) is more than 15000 Crs. Hence, it is difficult to get good returns once AUM exceeds a certain amount.
To start a SIP on Groww is simple. Follow the below steps;
1. Choose fund. Click on Invest.
2. Type the amount. Choose your instalment date. Click on make payment.
3. Payment must be done through net banking.
4. Only first instalment must be paid manually. Further instalments will deduct automatically once biller is added.
In large cap fund, a large portion of investment is done in companies with large market capitalization like HDFC.
HDFC offer two mutual funds in large cap category:
But these funds are not best large cap funds available in market right now and has been rated by Groww 2 and 3 star respectively. If you can think of investment outside HDFC, you can consider these large cap funds with 5 star rating from Groww: