Find the best large-cap fund for 2021 along with the selection process and review the performance of the best large-cap fund of 2020
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.
Hi Sir. I have already SIP in Axis bluechip as it seems really good.
Sir i am waiting for Multicap as well as Small cap blog. In Multicap, i am confused with Axis and Parag parikh. In Small cap whether Axis or SBI. Thanks!
Allow me some time and will share the process for all those funds. If you want, you can check the process I used in 2020 as well. https://shabbir.in/mutual-fund/best-funds-2020/
Sir, I gone through your blog small cap and midcap for 2020. It’ seems axis fund both. I think, market will do well in 2021. I have heavy investment in small cap (Franklin started sip in jan 2018 ) for now all sip closed. I have started sip in axis mid, already have sip in its bluechip. Should I pick a multicap or small cap.
Mukesh, my suggestion will be that you consult a financial advisor on the matter and he will be able to guide you better. I am not a financial advisor and more of an equity investor.
Still, my view is you should opt for diversified portfolio of large cap, mid-cap and small cap fund. If you can’t do that, you can opt for a multi-cap fund and fund manager do the allocation for you.
Thanks sir! I will go for Axis small cap.