Best Mutual Funds In August 2022

When it comes to a mutual fund that to equity as an asset allocation, the large-cap category is the most important category that is the first thing that will strike you, which will come into your mind. So, in this article, I'm going to explain to you what are the three best funds in the large-cap mutual fund category.  

And that's not all. So what is a large-cap fund, you can invest in large-cap fund why a large-cap fund should be a part of your portfolio, and the three best large-cap funds because there are 47 mutual fund companies?

There are 47, large-cap funds out there? So how do you get to select the top three, I'm going to help you with the top three and as well as these parameters. 

how do I'm selecting these funds? What are the criteria to select the best three categories? Number one is the fund performance that comes to first so when you're buying a car, a salesman, a car salesman would be explaining all the features of the car, the dashboard, the design, the exterior, the interior, everything they will explain. 

But finally, everybody will boil down to one question, which is how much mileage this car gives currently in the city and in hiring. So what are the features like expense ratio, the fund manager asset under management after fund, everything boils down to the performance? 

So number one criteria, which is the performance, so I divide the performance into two parts. Number one is how much the fund is delivering better than the standard benchmark why we call it as alpha.

Best-Performing Mutual Funds for August 2022

So the standard benchmark is that written expectation and how much this fund is delivering from the benchmark return. So that is the difference between this benchmark return and the actual performance. 

And number two is that this elevated performance is there consistently. So I always divide the fund into five different timeframes one year, three years five years seven-year and 10 years. So all these five timeframes whether the fund has delivered superior returns consistently or not. So that is performance. 

And that's not all the age of the font, how long this font is that because longer the age is always better to analyze and asset under management, how much asset management does this fund have?

Because that many numbers of investors are trusting this particular fund which is also an indicator and I will be analyzing few criteria our ratios, which is standard deviation and the Sharpe ratio.

Standard deviation is a measure of the volatility and the Sharpe ratio which is the measure of the risk and reward I mean, there is no reason that you should take high risk and take high return there is absolutely no reason with the lowest risk still you can take a better return. 

So that is the idea and that is the Sharpe ratio which indicates how much downside protection this fund is actually giving and finally the AMC and the fund manager. A fund manager is a person who is delivering the return.

Which is the best mutual fund to invest in 2022?

What is the qualification of the fund manager How is he managing the other funds and also the AMC whether the fund is the focus to fund for AMC or not?

Because every fund every AMC will have kind of 100- 250 number of escapes whether this part is a focus to find out not far the AMC that's also important you should not be investing in a fund to fund the namesake many AMC has many funds, you should not be investing choosing those funds and you get left over. 

So with these as an aspect, I have arrived at three superior funds, there are 47 agencies, there are 47 large-cap funds and it is a tough choice to take the three alone. 

#3. NUMBER

So number three is Invesco large-cap fund. That is the third pick when it comes to the large-cap fund. This fund is there since August 2009. This is there in existence for 13 long years and the last three years fund return is 20%superior to the last five years return of 15% Last three last a 10-year return of 14% It has delivered the best return than the standard benchmark.

And you know something good about this particular fund which is a very good focused and concentrated font that means normally every mutual fund scheme has 50 to 60 number of funds, but this particular scheme has only 37 number refers when it is a focus to find the ability to deliver a higher return is very high. 

So, that is how it is delivering a superior return. But that superior return comes with the volatility this fund has slightly more volatile than the other two funds, which I'm going to explain but more ammunition for a higher return. So, if you are a very aggressive person you should be going in with the Invesco as a plug because the standard deviation is 20.6. 

And it is the Sharpe ratio is 0.68 which is it which is better it is better definitely than the beer but it is slightly riskier than the other two funds. 

#2. NUMBER

the second best fund which is Axis Bluechip Fund and I'm a very big fan of Axis as a fund house asset management company because in every category they will have representation. So, as the large-cap category, this fund is planned since January 2010 They have 34,000 Crore that the many numbers of customers trust this particular fund that much after returns.

They have delivered high performing returns last three returns 17%, last five-year return 15% And at the last 10-year return again 15% of returns again, this is also surprisingly a concentrated font They have only 38 number of stocks with the standard deviation is okay the Sharpe ratio is also okay. 

That means that the Sharpe ratio is 0.78 which is clearly better. The downside protection is they're still there. That's the magic of Axis Bluechip Fund.

#1. NUMBER

The number one large cap fund which is Mirae Asset Large Cap Fund. This fund is there since 2008. And what has not changed since 2001 a lot has happened in the financial world. Not many funds have come not many funds are gone. But is the superiority in the performance in Mirae Asset Large Cap Fund did not change.

The asset is under the management of 30,000 crores. The last three years company returned 90% which is a superior track record. last five years 15% And last 10 years 16 person. Superb, it is it is amazingly superb performance from areas of large cap, the portfolio P is 21. That means that this fund has got a even more good potential to deliver a superior return.

Because the portfolio is not an expensive portfolio, it's only 21. And it has got a well diversified number of stocks 60 number of scouts. That means that highly diversified portfolio that a standard deviation better Sharpe ratio portfolio is also 21 times it's the number one choice when it comes to large cap funds. 

So who can start investing in these funds, if you're an investor who has or is enough, five to seven years, then you can probably look at large cap because equity is a five-year plus game, you got to stay with this fund for a minimum period of five years, I would say for a period of seven years also? 

So if you have a very less horizon and would not choose this category, this category is not for you. And within equity. This is the least risky category with a mid-cap for slightly aggressive.

Small cap funds even more aggressive and thematic global funds even more aggressive than large cap asset categories. So less riskier, good returns, but you got to stay for a longer period of time.

And with a personal disclaimer, this is my own personal recommendation and advice to you if you want to buy these funds. Number one, do you want research or consult your financial advisor.

Because everyone's requirements are different? Your investment horizon your risk appetite, your age, these things everything matters, you can't be putting all your money into large cap funds. 

So determination of how much money should be there in the large cap as a category that we'll get to decide that only within these three factors. So consult with your financial consultant to know that how much you should be investing with the large cap whether the large cap is a suitable category or not.