The Best Large Cap Fund To Invest in 2021

Let us find the best large-cap mutual fund to invest in 2021 and review the performance of our choice of best large-cap fund of 2020.

So let’s begin.

In the end, 2020 was a good year for the overall equity market, especially large-cap, and so large-cap funds have done better.

The Sensex and the Nifty did well in 2020 as well despite very high volatility.

Investing or even SIP in the right large-cap funds in 2020 made sure of outperformance.

Still, I think the amount invested in the first half of 2020 in a large-cap fund, SIP or otherwise, has pumped up the portfolio performance in a big way.

The Top Large-Cap Funds for 2021

We will use the process to come to the best large-cap fund for 2020 is – from the 4-star and 5-star rated large-cap fund by ValueResearchOnline, we will compare the past year’s performance along with expense ratio to get the best large-cap fund.

Last year we only used 5 star rated funds because it provided us with many funds to choose from. This year we only a few 5-star rated large-cap funds. So we use both 4 and 5 star rated funds.

Best Large-Cap Funds for 2021

The best performing large-cap funds in 2020 amidst all the volatility are:

• Canara Robeco Bluechip Equity
• Axis Bluechip

Based on the expense ratio, if we have to select only a couple of funds, then it will be:

Axis Bluechip

Axis Bluechip Fund has been a consistent performer. It was the best large-cap fund in 2019 as well as in 2020.

Without a doubt, it has to be the best large-cap fund for 2021 as well.

As expected, CRISIL also lists the Axis Bluechip fund as the top large-cap fund.

Canara Robeco Bluechip Equity

The next best large-cap fund for 2021 has to be Canara Robeco Bluechip Equity.

The fund has performed the best with a whopping return of 23%. With a low expense ratio, it can indeed outperform in 2021 as well.

As expected, it is also the best fund as per CRISIL.

How Well The Best Large-Cap Funds of 2020 Performed?

I share the series of best funds because we evaluate how we have done in the past. It means either we do well investing or we learn to improve our fund selection process.

The best large-cap fund of 2020 was Axis Bluechip Fund. It has made returns of 18%, which is quite good.

However, the other best fund was Mirae Asset Large Cap Fund, and it has also given decent returns as well though it is slightly under 14%.

Final Thoughts

Do not switch funds every year and pay the entry and exit load or long term capital gains tax.

In case you have not selected a better performing fund earlier or want to move to a new fund for any other reason (move to regular to direct funds). Don’t exit the investment in the old fund. Just stop the SIP and let the invested amount remain and grow over time in those funds. Create a new SIP in the new fund.

As always, this isn’t an endorsement of any fund. The emphasis is on the process. The funds may be doing well now, but when you want to invest, use the same process and find the best fund. Use ValueResearchOnline and CRISIL as and when you want to invest in the whole of 2021.