Sensex down 10% from highs! Top 4 SIP mutual funds to buy from large cap category in falling market

The investors are showing keen interest in Systemattic Investment plan (SIP), especially when the markets are falling, working it to their advantage to help generate good return from their investment in the long-run.  

As per ICICI Direct, this trend of increasing amount of SIP was visible in January 2022 too when investors bought SIPs to the tune of Rs 11, 500 crore as against Rs 11300 crore in December 2021.  

Interestingly, the sharp fall in January attracted higher inflows from investors reflecting increased investment maturity among retail investors. January 2022 saw highest ever inflows (ex-NFO) at Rs14900 crore compared to Rs 12600 crore in December 2021.    

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"We are witnessing an extremely healthy trend of higher inflows at lower market levels. The same shows investment maturity among retail investors where market fall is used as an investment opportunity," observed ICICI Direct Research report.  

Mutual fund industry witnessed a 22% jump in its AUM in 2021. Total AUM of mutual fund industry too rose marginally to Rs 38 lakh crore from Rs 37.7lakh crore in December 2021.    

As investors continue to show interest in SIP amid correction, ICICI Direct has 4 top recommendations to opt for from large cap fund category—Axis Bluechip Fund, Canara Robeco Equity Bluechip Equity Fund, ICICI Prudential Bluechip Fund and IDFC Large Cap Fund.   

1 Axis Bluechip Fund:  
Axis Bluechip Fund is run by Axis Asset Management Company Ltd. The company boasts an AUM of Rs 34,181.90 crore as of January 2022.  The market capitalisation of Axis Bluechip Fund stood at Rs 51,946.39 crore. Axis Bluechip Fund generated a return of 14.7% per annum in one year, 17.7% in two years and 17.9% in three years as of February 28, showed details with stock Ede, an app to analyse stock market and mutual fund data. NAV as of February 28 remained at 43.87%.  

Top 5 stock holdings as of January 2022: ICICI Bank (9.5%), Infosys Ltd (9.3%), Bajaj Finance (9%), TCS (7.5%) and Avenue Supermarts (7.3%).  

2. Canara Robeco Equity Bluechip Fund  
As per trendlyne.com the AUM size of this fund is Rs 6020.47 crore as on January 31, 2022. One-year annual return as on February 28 stood at 15.14% and nearly 20% (19.96%) in three years.  

Top 5 stock holdings:  
The fund has maximum exposure in Infosys Ltd (8.49%), ICICI Bank (8.27), HDFC Bank (7.54%), Reliance Industries Limited (7.05%) and State Bank of India (4.92%).  

3. ICICI Prudential Bluechip Fund  
This scheme has an AUM size of Rs 31271.57 crore as on January 2022. The scheme clcoked a return of over 18 per cent in one year and over 17% per annum in three years as of February 28, 2022.  

Top 5 stock holdings of ICICI Pru Bluechip Fund are ICICI Bank (10.04%), HDFC Bank (7.78%), Infosys (6.63%), RIL (6.15%) and Axis Bank (5.68%). These details are as for the equities' exposure of ICICI Prudential Bluechip Fund in January.  

4. IDFC Large Cap Fund  
IDFC Large Cap Fund AUM as on January 2022 stands at 993.99 crore. One-year return by this scheme comes out at 19% and 17.9% per annum in the last three years, calculated as on February 28, 2022.  

Top 5 stock holdings:  

ICICI Bank (9.6%), SBI (8.3%), HDFC Bank (7.4%), Infosys (6.7%) and RIL (4.9%) are the top 5 holdings of IDFC Large Cap Fund  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)