Safety in size

FUND REVIEW - LARGE CAP FUNDS

In 2007, these large-cap funds delivered 59 per cent return, compared to mid-cap funds' return of 62 per cent. Not a big difference for their much higher stability. These funds justify being the core of any investors' equity portfolio. Of the large-cap universe, we have chosen four top-rated funds with the most consistent performance in the past 5-years.

 

KOTAK 30
Kotak 30 is not a 30-stock fund anymore. The fund has recently changed its mandate and is now allowed to invest in up to 39 stocks, as against the earlier 30. Kotak 30 is at present bullish on the technology and energy space.

Its performance exemplifies its stance; the fund has outperformed the category average for the past four years. On an average, the fund has had 80 per cent of its stocks invested in large-caps, giving it the much needed stability. Overall, Kotak 30 is good enough to be a core holding of any portfolio.

HDFC TOP 200
Looking for something stable but slightly aggressive as well? Well, look no further than HDFC Top 200. A predominantly large-cap portfolio gives the fund stability and aggressive mid-cap calls give it the edge.

The fund maintains a portfolio of around 52 stocks on an average and has a lower expense ratio as compared to its peers. HDFC Top 200's portfolio is well diversified across sectors but has been favouring financial services for some time now. The fund has a consistent track record and is an ideal pick for most investors.

MAGNUM CONTRA
Magnum Contra has an excellent track record; the fund has managed to hold its 5-star rating for the past three years. It is a multi-cap fund with a large-cap dominance. The fund's portfolio is a perfect blend of growth and value stocks.

It is currently upbeat on the energy sector and has always preferred to stay away from out-of-flavour sectors like technology. The fund does not resort to frequent churning and is suitable for most investors.

HSBC EQUITY
A real large-cap fund with over 80 per cent invested in big-caps has to deliver above average return with reasonably low risk. The fund has no small-caps. The fund has captured big sector moves well