In my last post, I have analyzed a few equity multi-cap funds. You can read my last post here: A Quick Guide On Top Performing Mutual Funds 2017. In the last post, I have analyzed equity multi-cap funds. Now it is the time to analyze the large-cap equity mutual fund arena.
We have handpicked these few funds as our bet for the large-cap equity mutual fund category. Watch the image below:
Out of the four funds, Quantum Long Term Equity Fund is an emerging fund in our list. We thought that lower charges will not really transform into better returns.
The Quantum Long Term Equity Fund definitely convicts what is says. Lower cost is definitely an advantage for this fund but the lower cost has now been marginalized because the ICICI Prudential Value Discovery Fund now has a lower cost than Quantum Long Term Equity Fund in the direct plan. Of course, Quantum Long Term Equity Fund is sold only direct and you have 1.25% expense ratio but here you have even lower because of the scale of the fund the cost has come down for the fund below 1%, so that advantage will prevail for this fund. But despite that, if you look at it, its a changed classification. This is a migrated category, from multi-cap to large-cap. So their portfolio reflects their gradual shift from multi-cap to the large-cap category.
Overall the four funds that are into our radar are have performed very well. We have selected them based on their 3-year returns. These funds will do well in the bear phase of the market too and they will provide superior risk-adjusted-performance. Now, as large-cap funds were out of favor in 2015/2016 we believe this sector especially these four funds will do exceptionally well in large-cap equity mutual fund sector.