This large-cap mutual fund has yielded positive returns in the past decade!

The fund has achieved an impressive CAGR return of around 33.5 per cent in the past one year.

Investment decisions can indeed be complex, often entailing a series of challenging questions that demand careful consideration. One such dilemma frequently encountered by investors is the choice between stability and growth when selecting mutual funds. Should one opt for Large-Cap funds for stability or Small-Cap schemes for aggressive growth, or select any Mid-Cap schemes?

If you're someone who doesn’t favor volatility much, then large-cap funds are the best choice to have in your portfolio. In this article, we will explore one large-cap fund that has performed exceptionally well by delivering positive returns to its investors each year over the past decade.

Edelweiss Large Cap Fund Regular Growth

The investment objective of this scheme is to achieve long-term capital appreciation by primarily investing in equity and equity-related securities of the 100 largest corporations by market capitalization listed in India.

The fund is managed by Bhavesh Jain and Bharat Lahoti, it was launched on May 20, 2009. As of March 31, 2024, the expense ratio stands at 2.28 per cent, slightly higher than the category average of 2.04 per cent. The benchmark for this scheme is the Nifty 100 TRI. With a minimum SIP amount of Rs 100 and a minimum initial investment (one time purchase) of Rs 5000, investors can invest in this open-ended fund, offering flexibility to invest at any time.

Over the past decade, the fund has exhibited varying degrees of returns. Notably, the highest returns were observed in the year 2014, with an impressive return of 37.65 per cent. This marked the fund's standout performance during the specified period, showcasing its potential for substantial growth within the investment landscape.

The fund presently holds an NAV (Net Asset Value) of Rs 76.86 with a total fund size of Rs 828 crore, while maintaining an expense ratio of 2.28 per cent.

Portfolio contribution: Equity holdings account for 96.23 per cent of the portfolio, with no investments in F&O or foreign equity. The total allocation to equities stands at 96.23 per cent. The fund comprises investments in 76 stocks, exceeding the category average of 49.03. Large Cap investments represent 65.2 per cent of the portfolio, followed by Mid Cap investments at 15.79 per cent, Small Cap investments at 1.4 per cent, and other investments at 13.84 per cent.

Taxation: For investments sold after 1 year from the purchase date, long-term capital gain tax applies at the current rate of 10 per cent if the total long-term capital gain exceeds 1 lakh. This tax does not include any cess/surcharge. For investments sold before 1 year from the purchase date, short-term capital gain tax applies at the current rate of 15 per cent. This tax rate does not include any cess/surcharge.

Suitable for Investors: This fund is ideal for investors seeking to invest for a minimum of 3-4 years, aiming for high returns. However, investors should also be prepared for the potential of moderate losses in their investment portfolios.