Safe to stick to Large cap funds in volatile times

It is no brainer that the environment in the equity market has turned volatile post two major events one global and one local i.e US Presidential elections and demonetisation. When the markets are uncertain of the future economic outcome due to a policy decision taken by the government safest way to participate in the equity market is always to stick with quality and less volatile stocks.

Large cap stocks often become attractive in such an uncertain environment. Large cap equity funds can be looked at as the markets have corrected heavily and the large cap stocks have corrected almost 15 to 20 per cent. Large cap funds invest your money in stocks of large companies that are stable and established. Large cap funds tend to have lower risks compared to other funds.

Some of the best performing large cap equity funds are SBI Bluechip Fund – Regular (G) , Birla SL Frontline Equity – (G)  and Franklin India Prima Plus Fund – (G). These large cap funds have enjoyed good ratings from various credible agencies that rank mutual funds and have delivered more than 23 per cent returns over a three-year period.