Skip to main content

ING Large Cap Equity Fund

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Large cap stocks are the leaders having higher market caps. They enjoy an edge over their mid-sized peers as they are well established, have stable revenues, usually well researched and are more predictable compared to highly volatile mid caps. The most noteworthy of them is their ability to provide stability to the investor's portfolio, during turbulent stock market conditions. Large cap funds are mandated to invest in large cap stocks and tend to outperform the funds in other category during uncertainty of the equity markets. Large cap funds are thus favoured during turbulent times of the equity markets as they are capable of providing stability to one's portfolio.

ING Large Cap Equity Fund (ILCEF) (erstwhile known as ING Nifty Plus Fund), is one such open-ended equity fund from the stable of ING Mutual Fund. It follows a blend style of investing. ILCEF predominantly invests in equity and equity related securities of large cap companies in India, along with money market instruments to manage its liquidity requirements. The fund was launched in February 2004 and has been in existence for a little over 7 ½ years now.

It is noteworthy that the fund has undergone changes in its fundamental attributes from March 25, 2011. Earlier the fund was classified as an open ended index linked equity Fund while now it is classified as an open ended equity fund.

Primary investment objective of the fund is "to seek to provide long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities constituted in the S&P CNX Nifty Index. There can be no assurance that the investment objective of the Scheme will be realized".

The fund is mandated to invest predominantly in stocks forming the S&P CNX Nifty and a small portion of the net assets may be invested in the stocks falling outside the index. The fund abides itself to invest minimum 70% of the corpus in equities including the maximum exposure of 20% to stocks falling outside S&P CNX Nifty. Fund may also invest in cash and money market instruments to manage liquidity with maximum exposure of 30% of its corpus.

 

Equity Portfolio

Holdings

June 2011

July 2011

Aug 2011

Sept 2011

Oct 2011

ITC Ltd.

6.5

7.3

8.7

8.9

9.1

Reliance Industries Ltd.

6.6

6.7

6.9

7.0

7.2

ICICI Bank Ltd.

8.3

9.5

6.9

5.6

6.7

Infosys Ltd.

7.7

8.0

6.4

7.1

6.2

HDFC Bank Ltd.

4.7

5.0

6.3

6.5

5.5

Tata Consultancy Services Ltd.

3.7

3.9

3.9

4.0

4.1

Tata Motors Ltd.

2.1

2.2

2.1

2.2

3.8

HDFC Ltd.

5.2

4.0

5.3

4.2

3.3

Bharti Airtel Ltd.

1.9

2.3

3.4

3.3

3.2

Larsen & Toubro Ltd.

4.6

4.8

4.9

4.3

2.7

 

The table above reveals that ILCEF' portfolio holds some of the most liquid large caps. Its latest portfolio (as on October 2011) comprises of 36 stocks, of which mere 6% are the 'B' group stocks while the rest (94%) are the group ones. The investment mandate of the fund attempts to minimise the risk arising from the poor stock selection and invests predominantly in widely researched index stocks along with derivatives in order to hedge the portfolio, thereby enhancing investors' interest.

The top-10 stocks account for 51.77% of its total holding, whereas the top-5 sectors account for 48.26% of the portfolio. The fund manager refrains from churning the portfolio quite often as revealed by the portfolio turnover ratio of 0.81 times.

 

How ILCEF has fared vis-à-vis its peers?

Scheme Name

6-Mth (%)

1-Yr (%)

3-Yr (%)

5-Yr (%)

Std. Dev. (%)

Sharpe Ratio

Principal Large Cap(G)

-11.5

-19.8

28.4

8.1

7.66

0.24

Franklin India Bluechip(G)

-6.1

-11.2

27.2

9.4

6.73

0.25

Birla SL Frontline Equity(G)

-8.9

-17.1

25.6

9.8

7.47

0.22

ICICI Pru Top 100(G)

-7.8

-13.8

21.9

6.1

6.47

0.21

ING Large Cap Equity(G)

-8.4

-16.8

20.5

4.7

7.36

0.17

Reliance Vision-Ret(G)

-16.0

-25.4

18.9

5.0

7.48

0.18

S&P CNX Nifty

-9.3

-17.6

20.8

5.1

7.76

0.17

The table above reveals that ILCEF's performance has not been very luring so far. Even though over a 3-Yr and 5-Yr time frame, the fund has clocked a return of 20.5% CAGR and 4.7% CAGR respectively, the fund has underperformed its benchmark – S&P CNX Nifty Index and most of its peers under both these time frames.

On the volatility front ILCEF has certainly exposed its investors to low risk (as revealed by the Standard Deviation of 7.36%), but the risk-adjusted returns (as revealed by the Sharpe Ratio of 0.17) clocked too have been middling and nothing to vie for when compared to its peers.

 

Fund Manager Profile

Name of the Fund Manager

Mr. Ramanathan K.

Total Work Experience

Over 12 years

Managing the fund since

May-11

Qualifications

CFA,PGPM, B.E(Mech)

ILCEF's performance has not been very luring so far. Even though over a 3-Yr and 5-Yr time frame, the fund has clocked a return of 20.5% CAGR and 4.7% CAGR respectively, the fund has underperformed its benchmark – S&P CNX Nifty Index and most of its peers under both these time frames. Despite having a flexibility of investing up to 20% of its assets in non-index stocks fund has failed to outperform the S&P CNX Nifty. Moreover, it has not generated any risk adjusted returns in excess of those generated by S&P CNX Nifty. It defeats the principle of active fund management. The high expense ratio of 2.50% has also eaten into the returns generated by the fund.

Merely investing in a large cap fund neither assures you success in mutual investing nor it exposes you to lesser risk. But selection made after doing in-depth analysis certainly enhance your chances of generating competitive returns at lower risk.

--------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now