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Top ETF vs Top Large Cap Mutual Fund 5-year Return Calculator: Equity mutual funds have most of their money in equity, but most of them don’t trade like stocks that can be bought or sold during a share market session.
The price of the net asset value of a mutual fund is decided every day after the market session ends and remains the same till the marker opens the next day.
It remains static during market holidays.
But there is a category of mutual fund, which can be traded like a stock during market hours. It is known as an exchange-traded fund.
On the other hand, large cap mutual funds are like any other equity mutual fund.
Though they come under the high-risk category, investors invest in large caps for their stability.
Know more about ETFs and large cap mutual funds in this write-up; which has been the top ETF and the top large cap mutual fund in terms of highest annualised return (CAGR) in the 5-year period, and which has given higher return during that period.
What are ETFs?
Exchange Traded Funds (ETFs) are the only mutual funds that can be traded in a stock market like any other share.
One needs a demat account to trade them.
They can’t be traded after the market closes.
They track an index or an underlying asset. ETFs invest in equities, bonds, and assets, of which they track the price.
Most ETFs are passive mutual funds and have a low expense ratio. Some of the types of ETFs are- index, fixed income, commodity, leveraged, inverse, or foreign market.
What are large cap mutual funds?
As per Sebi’s classification of mutual funds, large cap mutual funds need to have at least 80 per cent of their investments in large cap firms.
These companies are India’s top 100 firms in terms of the highest market capitalisation.
They are fundamentally strong, have diversified businesses, and are spread globally. Investments in such companies provide stability to large cap mutual funds.
Though large cap mutual funds are high-risk, investors pick them for investments due to their stability during market fluctuations.
Top ETF in 5 years
CPSE ETF is the top ETF in terms of CAGR in 5 years. It has given 30.65 per cent annualised returns in the 5-year period.
Top large cap in 5 years
The top large cap mutual fund in 5 years is Nippon India Large Cap Fund Direct-Growth.
The fund has given 21.29 per cent annualised return during that time frame.
CPSE ETF
One of the most consistent ETFs in the long term is also the biggest in size, with Rs 44,278.80 crore of assets under management (AUM).
It has a trading volume of 15,83,247.
The ETF had a net asset value of Rs 93.0303 as on November 7, 2024.
The ETF that tracks Nifty CPSE TR INR, comes with an expense ratio of 0.05 per cent compared to its category average expense ratio of 0.37 per cent.
The ETF, launched on March 28, 2014, has a turnover ratio of 20.00 per cent.
The ETF invests in securities that are constituents of the Nifty CPSE Index in the same proportion as in the Index.
Nippon India Large Cap Fund Direct-Growth
The fund has AUM of Rs 34,432 crore, while its NAV is Rs 96.81.
Benchmarked against BSE 100 TRI, the fund has given 17.23 per cent annualised return since its debut in January 2013.
With an expense ratio of 0.67 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment.
Return on Rs 5 lakh investment in CPSE ETF
A Rs 5 lakh investment in the ETF has given return of Rs 13,91,767, and the total value of the investment is Rs 18,91,767.
Return on Rs 5 lakh investment in Nippon India Large Cap Fund Direct-Growth
A Rs 5 lakh investment in the ETF has given a return of Rs 8.13 lakh, and the total value of the investment is Rs 13.13 lakh.