A recent report by CRISIL has ranked mutual funds for the quarter ending June, evaluating them based on performance and key metrics. In the June quarter, there was a significant increase in domestic capital flowing into the equity market, particularly through mutual funds. This influx has notably boosted the Nifty 50, leading to a return of 8.1% within that period. Additionally, the Nifty Smallcap 100 index experienced a remarkable surge of 20% during the same timeframe.
According to market trends in this calendar year, small and mid-cap stocks have continued to be popular among investors. Retail investors have shown significant interest in stocks from this sector in the first half of 2024.
Since the beginning of the year, both the Nifty Midcap and Nifty Smallcap indices have experienced a considerable increase of around 21 percent, surpassing the Nifty benchmark’s rise of 10.5 percent. More specifically, the Nifty Midcap index has outperformed the Nifty in four out of six months this year, while the Nifty Smallcap index has shown higher returns in three of those six months.
According to the CRISIL list, the Bank of India Blue Chip Fund topped the large-cap category. The fund has 98.85% investment in domestic equities of which 65.33% is in Large Cap stocks, 7.52% is in Mid Cap stocks, and 4.73% in Small Cap stocks. The fund has 0.21% investment in Debt, of which 0.21% in Government securities.
The investment objective of the scheme is to provide investors with opportunities for long-term capital appreciation by investing predominantly in equity and equity-related instruments of large cap companies.
Bank of India Blue Chip Fund reported a total of Rs 159 crores in assets under management (AUM) as of June 30, 2024. The fund primarily allocates its investments in sectors such as Financial, Automobile, Capital Goods, Energy, Metals & Mining. Its top 5 holdings include prominent companies like HDFC Bank Ltd., State Bank of India, Reliance Industries Ltd., NTPC Ltd., and Avenue Supermarts Ltd.
Piyush Gupta, Director of Funds Research at CRISIL, said the Bank of India Blue Chip Fund achieved this ranking after completing three years of performance history — an essential criterion for inclusion in CRISIL’s Mutual Fund ranking.
Gupta emphasized that the fund’s robust performance and superior ranking based on portfolio metrics, including industry and company diversification, were pivotal in securing its leading position. The fund boasts a diversified portfolio that spans various sectors and companies, showcasing a sound investment strategy and risk management approach.
Bandhan Large Cap Fund Direct-Growth is a Large Cap mutual fund scheme offered by Bandhan Mutual Fund. As of June 30, 2024, the fund manages assets worth Rs 1,515 Crores, positioning it as a medium-sized fund within its category.
With an expense ratio of 0.91%, which is comparable to the industry standard for Large Cap funds, Bandhan Large Cap Fund Direct-Growth aims to provide investors with competitive returns while maintaining cost efficiency.
In one year, the fund has delivered impressive returns of 36.71%, showcasing its potential for growth. Since its inception, Bandhan Large Cap Fund Direct-Growth has maintained an average annual return of 14.62%, demonstrating its consistency in performance. Moreover, the fund has a track record of doubling the invested amount every 4 years, highlighting its ability to generate wealth over the long term.
When compared to other funds in its category, Bandhan Large Cap Fund Direct-Growth exhibits a consistent track record in delivering returns, aligning with industry standards. Although its performance in mitigating losses during market downturns is considered average, the fund’s overall performance and growth potential make it a viable option for investors seeking stability and growth in the Large Cap segment.
Talking about Bandhan Large Cap Fund, Gupta said the enhancement in performance of the fund was due to its exceptional returns and improved diversification at company and sector levels.
The Bandhan Large Cap Fund has seen an advancement in its industry concentration ranking, moving from fourth to second, as well as in its company concentration ranking, progressing from fourth to third. Furthermore, its robust liquidity ranking has further bolstered its overall ascension.