These large cap funds gave over 40% return in past 1 year. Should you invest? (2024)

FAQs

Which mutual fund gives 40% return? ›

Given this scenario, an astute investor might consider investing in large-cap value funds to mitigate risks. Historically, large-cap funds have shown stability and are considered more reliable compared to mid- or small-cap funds.

Are Large Cap funds safe? Large Cap funds are relatively safer form of equity investments as they are known to withstand bear markets. With a good investment horizon, Large Cap funds can deliver sound and stable returns.

Aditya Birla Sun Life Dividend Yield Fund and LIC MF Dividend Yield Fund have delivered over 50 per cent returns in the last year. Tata Dividend Yield Fund and HDFC Dividend Yield Fund have delivered over 45 per cent returns in the last year.

Around five equity mutual fund categories have offered over 50% returns in one year, according to data provided by Value Research. We have considered all equity and equity-oriented categories for the analysis. These categories offered returns ranging between 50.67 and 94.10% in a one-year horizon.

Large-cap growth funds are generally considered to be safer than other stock funds because they invest in large, well-established companies. In investing, however, “safe” doesn't mean risk free. You can still lose money if the market takes a downturn or if the companies don't grow as expected.

In the long term (around five to seven years), these funds tend to offer good capital appreciation. However, before you start investing, ensure that you consider your investment objectives and risk tolerance apart from the long-term investment horizon.

Due to their strong financials and stability, large-cap stocks have delivered strong returns over the years. JPMorgan Wealth Management reported that these equities contribute to capital appreciation for investors over the long term.

The ideal investment duration in short-duration mutual funds varies based on individual financial objectives and risk tolerance, but generally, a duration of 1-3 years is advisable to balance growth potential with risk management.

Is it safe to invest in large-cap? ›

In uncertain market conditions, investing in these dependable, large-cap sector companies offers a secure path, providing reliable returns at a reasonable cost. Large-cap stocks emerge as a beacon of stability, capable of weathering market storms and offering investors a safe haven for their capital.

Gold mutual funds have shown strong performance; some have delivered over 20% return in the past 6 months. SBI Gold gave over 24% return and Quantum Gold Saving Fund gave over 23% return in the same period.

I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international. I personally spread mine in 25% of those four. And I look for mutual funds that have long track records that have outperformed the S&P.

The top three schemes were from Quant Mutual Fund. Quant Small Cap Fund, Quant ELSS Tax Saver Fund, and Quant Mid Cap Fund gave 37.86%, 31.67%, and 31.66% returns, respectively, in the last five years. This small cap fund gave 31.37% return in the last five years.