Categories: The Best Funds To Invest in 2017

The Best Large Cap Funds To Invest in 2017

Last week I selected the best midcap funds for 2017 along with the process as to as to how to select the funds that can provide you the right amount of exposure to mid-caps.

Many readers in comments and emails expressed interest in knowing the best large-cap fund as well so here is my process of selecting the best large cap fund for 2017.

The Top Large Cap Funds Of 2017

As always let us start with the top performing large cap funds. We select large cap direct funds that are rated as 3,4 and 5 star on ValueResearchOnline and has given more than 20% return in last 1 year.

Though all of the funds are large caps, they don’t have same benchmark.

Fund	Benchmark
HDFC Top 200 Fund	S&P BSE 200
Quantum Long Term Equity Fund	S&P BSE TRI-Sensex
ICICI Prudential Select Large Cap Fund	S&P BSE 100
HSBC Equity Fund	Nifty 50
Mirae Asset India Opportunities Fund	S&P BSE 200
DSP BlackRock Focus 25 Fund	S&P BSE 200
Kotak Classic Equity	Nifty 100
Birla Sun Life Top 100 Fund	Nifty 50
Birla Sun Life Frontline Equity Fund	S&P BSE 200
DSP BlackRock Top 100 Equity Fund	S&P BSE 100
HSBC Dividend Yield Equity Fund	S&P BSE 200
Motilal Oswal MOSt Focused 25 Fund	Nifty 50
Indiabulls Bluechip Fund	Nifty 50
ICICI Prudential Focused Bluechip Equity Fund	Nifty 50
Reliance NRI Equity Fund	S&P BSE 200
IDFC Equity Fund	Nifty 50
Franklin India Bluechip Fund	S&P BSE Sensex

And we select the one that can help us with better diversification which is S&P BSE 200.

The Best Large Cap Funds Of 2017

We are left with following large cap funds.

Fund	Benchmark	Net Asset
HDFC Top 200 Fund	S&P BSE 200	12,428
Mirae Asset India Opportunities Fund	S&P BSE 200	2,557
DSP BlackRock Focus 25 Fund	S&P BSE 200	1,868
Birla Sun Life Frontline Equity Fund	S&P BSE 200	2,229
HSBC Dividend Yield Equity Fund	S&P BSE 200	38
Reliance NRI Equity Fund	S&P BSE 200	81

Large cap direct funds has similar expense ratio. S now we remove funds with under 100 Cr net assets because they may not be able to afford the best fund managers.

We are left with 4 funds.

So let us do sectorial comparision to S&P BSE 200 and see which fund has more exposure to sectors that can outperform in the future and has less exposure to sectors that may underperform.

Fund	Auto	Tech	Pharma
HDFC Top 200 Fund	Less	More	Less
Mirae Asset India Opportunities Fund	More	Less	Less
DSP BlackRock Focus 25 Fund	More	Less	Less
Birla Sun Life Frontline Equity Fund	Less	Less	More

I am only considering auto, tech and pharma sector for this analysis because I think 2017 will be an year of auto, tech and pharma as a sector.

My view is bullish on auto sector because I see a lot of new innovations coming up in the auto sector and expect some disruption as well.

I am not bullish on tech and pharma sector due to high dependency on the USA.

Funds that has more exposure to auto and less exposure to tech and pharma compared to S&P BSE 200 can outperform the benchmark.

So I select

Mirae Asset India Opportunities Fund
DSP BlackRock Focus 25 Fund

As the best large cap funds of 2017.

Final Thoughts

Again this is not an endorsement that you should invest only in the above funds but the emphasis is on the process that I followed to choose the best funds.

You can add other sectors like the metal or energy that you are bullish on and choose a fund that best suits your views. Apply your own creativity and investment instinct to find a best large cap fund for your investment.

Shabbir Bhimani

A trader, investor, consultant and blogger. I mentor Indian retail investors to invest in the right stock at the right price and for the right time.