Large-cap funds offer stable returns in the medium term, primarily investing in large-cap stocks. Did you know that this particular Large Cap Mutual Fund has delivered the highest SIP returns in the last 10 years? If we had invested Rs 10,000 per month through SIP for 10 years, this large-cap fund would have multiplied to Rs 36.2 Lakhs. In this article, we will discuss the Quant Focused Fund, its portfolio, return performance, and provide our insights on such funds.
Also Read: 10 Worst Performing Mutual Funds in the last 1 year
How did we filter this top performing large-cap mutual fund?
- We have considered all Large Cap Mutual Funds available in India
- Filtered the single fund that generated highest SIP returns in the last 10 years.
- We could get Quant Focused Fund that turned Rs 1 Lakh investment to Rs 7.5 Lakhs in the last 10 years. A SIP of Rs 10,000 per month grew to Rs 36.2 Lakhs over the same period.
Source data: Moneycontrol and valueresearchonline
About Quant Focused Fund
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a focused portfolio of Large Cap – ‘blue chip’ – companies.
In simple terms, this fund would invest in large cap or blue-chip companies.
Quant Focused Fund – Portfolio
This fund currently invests 88% in equity, 11% in F&O and balance between Debt instruments.
The funds top 10 equity portfolio consists of Reliance Industries, LIC, Britannia Industries, Jio Financial Services, Adani Power, Gail, Hindalco, Sun Pharma, Aurobindo and Bikaji Food International.
Within its equity portfolio it invests 46% in large cap, 14% in midcap, 4% in small cap and 35% in other equity instruments.
In term of its debt portfolio, the fund invests in Government of India (GOI) bonds.
Earlier we covered a Hybrid Mutual Fund that turned 1 Lakh to 31 Lakhs in last 20 years, you may like to check that article too
Quant Focused Fund – Performance Details
Here is an overview of the fund’s performance for the past 10 years.
Absolute Returns of the fund
- 1-Year Return: 54.4%
- 2-Year Return: 84%
- 3-Year Return: 107%
- 5-Year Return: 207%
- 10-Year Return: 650% (1 Lakh would have turned to 7.5 Lakhs)
Annualised Returns of the fund
- 1-Year Return: 54.4%
- 2-Year Annualised Return: 35.5%
- 3-Year Annualised Return: 27.5%
- 5-Year Annualised Return: 25.1%
- 10-Year Annualised Return: 22.2%
SIP Returns of the fund
- 1-Year: 67.8%
- 2-Year: 41.4%
- 3-Year: 30.87%
- 5-Year: 30%
- 10-Year: 20.9%
1 Lakh Lump Sum Investment would have turned into
- 1-Year : 1.54 Lakhs
- 2-Year : 1.84 Lakhs
- 3-Year : 2.07 Lakhs
- 5-Year : 3.07 Lakhs
- 10-Year : 7.5 Lakhs
10K SIP Investment would have turned into
- 1-Year : Investment is 1.2 Lakhs and Current value is 1.6 Lakhs
- 2-Year : Investment is 2.4 Lakhs and Current value is 3.5 Lakhs
- 3-Year: Investment is 3.6 Lakhs and Current value is 5.6 Lakhs
- 5-Year: Investment is 6 Lakhs and Current value is 12.55 Lakhs
- 10-Year: Investment is 12 Lakhs and Current value is 36.2 Lakhs
Rolling Returns perspective:
3 Year Rolling Returns:
- Greater than 20% returns – 78% of the times
- 15% to 20% returns – 20% of the times
- 12% to 15% returns – 2% of the times
- 0% to 12% returns – Zero times
- Negative returns – Zero times
5 Year Rolling Returns:
- Greater than 20% returns – 5% of the times
- 15% to 20% returns – 42% of the times
- 12% to 15% returns – 26% of the times
- 0% to 12% returns – 27% of the times
- Negative returns – Zero times
You may like: 20 Equity Mutual Funds with Positive Returns every year in last 10 years
Conclusion and our view:
- This large cap fund allocates 88% of its assets in equity, 12% in F&O and balance in debt instruments. Within its equity component, 46% is in the large cap, 14% in midcap, 4% in small cap and 35% in other equity instruments.
- The fund’s beta stands at 0.9, indicating lower sensitivity to market movements compared to the benchmark. A beta of less than 1 suggests lower swings relative to the benchmark.
- With an alpha of 9.99, the fund has consistently provided extra returns compared to the benchmark. Investors typically favor high alpha funds for potential higher returns.
- This fund has generated 19.5% annualized return since its inception.
- Over the last 10 years, the fund yielded the highest SIP returns at 20.89%, means a 10K SIP per month over 10 years (total investment of Rs 12 Lakhs) into Rs 36.2 Lakhs.
- Investing in large-cap or blue-chip stocks, this fund offers stable returns in the medium to long term. It’s suitable for moderate to high-risk investors with an investment horizon of 5 years or more.
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