IDFC Large Cap Fund - Online Rupees

Contents Summary

Introduction

IDFC Large Cap Fund is a Large Cap mutual fund scheme from IDFC Mutual Fund launched on 9th June 2006. It has Rs. 823 Crores worth of Assets Under Management (AUM) and is a medium-sized fund of its category. The fund has an expense ratio of 1.23% and returns of the last 1 year are 49.85%. Since its launch, it has delivered 14.07% average annual returns.

IDFC Large Cap Fund scheme has the ability to deliver returns consistently in line with most funds of its category, also the capability to control losses in a falling market is below average. The majority of the investments are in the Financial, Technology, Energy, Construction, FMCG sectors. Infosys Ltd, ICICI Bank Ltd, HDFC Bank Ltd, Reliance Industries Ltd, Housing Development Finance Corporation Ltd are the top 5 holdings of this fund.

IDFC Large Cap Fund is benchmarked against NIFTY 50 TRI as primary index, S&P BSE 100 as a primary index, and S&P BSE 100 TRI as a secondary index. The current NAV is Rs. 49.56 -0.12(-0.24%) and the fund has 97.27% investment in Indian stocks of which 76.22% is in large-cap stocks, 9.21% is in mid-cap stocks, 1.15% in small-cap stocks.

Objective and Benchmark of IDFC Large Cap Fund

1. The investment objective of the fund is to seek scopes to generate capital growth from predominantly investing in large-cap stocks.

2. The fund is benchmarked against the NIFTY 50 Index.

Key highlights

1. The Current Net Asset Value of the IDFC Large Cap Fund is Rs. 49.56 for the Growth option of its Regular plan as of 07 Sep 2021.

2. The trailing returns of this fund over different time periods are 44.96%(1year), 12.89%(3year), 13.82%(5year), and 10.97% (since launch). Whereas, Category returns for the same time duration are 50.45%(1year), 13.51%(3year), and 14.53%(5year).

3. The IDFC Large Cap Fund currently holds Assets Under Management worth Rs. 822.96 Crores.

4. The expense ratio of the fund is 2.47% for the Regular plan, which is higher than other large-cap funds in similar categories.

5. IDFC Large Cap Fund shall attract an Exit Load of 1% for redemption within 365 days for units in excess of 10% of the investment.

6. Minimum investment required is Rs. 5000 and the minimum additional investment is Rs. 1000. Whereas, minimum SIP investment is Rs. 100.

Asset allocation and portfolio of IDFC Large Cap Fund

1. The asset allocation of the fund comprises around 97.51% in equities, 0.03% in debts, and 2.46% in cash & cash equivalents.

2. The top 10 equity holdings constitute around 52.73% and the top 3 sectors constitute around 62.67% of the fund’s assets.

3. The fund largely follows a Growth-oriented pattern of investing and invests across market capitalizations around 76.22% is in large-cap stocks, 9.21% is in mid-cap stocks, 1.15% in small-cap stocks.

Holdings

Infosys Ltd – 8.36%.
HDFC Bank Ltd – 7.94%.
Reliance Industries Ltd – 7.14%.
ICICI Bank Ltd – 7.08%.
TATA Consultancy Services Ltd – 4.79%.
State Bank Of India – 4.27%.
Axis Bank Ltd – 3.88%.
Bajaj Finance Ltd – 3.24%.
Ultratech Cement Ltd – 2.89%.
Kotak Mahindra Bank Ltd – 2.88%.

Basics

NAV – Rs. 49.56 (as of Sept, 2021).
Category – equity large cap fund.
Assets – Rs. 823 Crores.
Benchmark – Nifty 50 TRI.
Expense ratio – 2.47%.
Turnover – 59%.

Minimum investment – Rs. 5000.
Minimum aditional investment – Rs. 1000.
Minimum SIP Investment – Rs. 100.
Minimum withdrawal – Rs. 500.
Lock-in the period – not applicable.
Exit load – For units in excess of 10% of the investment,1% will be charged for redemption within 365 days.

Tax implications

1. Gains are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income and taxed according to the investor’s respective tax slabs.

5. Also, for dividend income in excess of Rs. 5,000 in a financial year, the fund house shall deduct a TDS of 10% on such income.

Peer comparison with other Mutual Funds

1. Canara Robeco Blue Chip Equity Fund Regular Growth – 19.01%.

2. Axis Blue Chip Fund Growth – 18.19%.

3. UTI Master share Regular Plan-Growth – 15.80%.

4. Mirae Asset Large Cap Fund Regular Growth – 15.79%.

5. ICICI Prudential Blue Chip Fund Growth – 14.94%.

Fund Manager of IDFC Large Cap Fund

1. Mr. Arpit Kapoor – He is a B.tech from Uttar Pradesh Technical University and PGDM from IIM, Kozhikode. He also had experience in equity markets while working with UTI Mutual Fund previously.

2. Mr. Summit Agrawal – He is a B.com, ACS, CFA, and PGDM(finance). He served in Mirae Asset Mutual Fund as fund manager(equities), Axis Capital as VP(research and analyst), and JP Morgan India Services Pvt. Ltd. as TL investment banking.

Who should invest in IDFC Large Cap Fund

If invested for 5 years or more, then expect gains can comfortably beat the inflation rate as well as returns of fixed income options. But, investors should always be prepared for the ups and downs in their investment value along the way. This fund invests in big companies, so tends to fall less when stock prices fall compared to funds that invest in mid-cap or small-cap companies. Therefore, they are more suited to conservative and risk-averse equity investors. But, investors should not invest in this or any other large-cap fund, if need to redeem their investment in less than 5 years.