18 Jul 2022
Are you one of those who prefers investing in large caps within your exposure to equities? We are sure you have your reasons. And if not, let us share some of our thoughts with you.
What are large-cap companies in India?
These are the 100 largest companies in terms of market capitalisation, listed on the Indian stock exchanges, as defined by the regulator - SEBI or the Securities and Exchange Board of India**.
These large-cap companies usually form a part of the investments made by institutional investors such as mutual funds, pension funds, insurance companies, hedge funds etc.
So why is it that such institutions and many retail investors tend to gravitate to such funds?
For instance, let’s take a look at the Kotak Bluechip Fund. This fund’s performance has been better than its benchmark, the Nifty 100 TRI index in 2019, 2020 and 2021.
This fund has also outperformed when compared to the average of Nifty 50 index funds, over 2019, 2020 and 2021.
It has around 50 stocks, with close to 81% investment in large-cap companies, over 14% investment in mid-cap companies, over 1% in small-cap companies and close to 4% in debt and cash*.
The fund has generated over 18% compounded annual returns since its inception^, with most significant investments in the financial services, information technology, oil, gas and consumable fuels, automobile and auto components and fast moving consumer goods space.
You too can consider to join the potential growth story of these companies. Know more about Kotak Bluechip Fund today!
*Source: Factsheet. Data as of 30th June 2022. Click here to view the complete portfolio of Kotak Bluechip Fund. The portfolio and its composition is subject to change and the same position may or may not be sustained in future. The fund manager may make the changes, as per different market conditions and in the best interest of the investors
^Data is for Kotak Bluechip Fund - Regular Plan (Growth Option). Past performance may or may not be sustained in future.
**Large cap companies would be those companies as defined under SEBI circular no. SEBI/HO/IM/DF3/CIR/P/2017/114 dated October 6, 2017 and as may be amended by SEBI from time to time. Currently the large cap companies are the 1st-100th in terms of full market capitalisation. The list of stocks would be as per the list published by AMFI in accordance with the said circular and updated on half yearly basis.
Kotak Bluechip Fund is managed by Mr. Harish Krishnan. View other funds managed by him.