Seek refuge in large-cap funds

With mid- and small-cap stocks correcting sharply in recent months, investors are seeking the safety of large-caps, which are not as expensive, and also tend to withstand a volatile market better. Here are some large-cap funds you can choose from

 

  • First, we calculated the Sharpe ratio for all the funds in the large-cap category for the three-year period
  • Sharpe ratio is a measure of the risk-adjusted return of a fund, that is, how much return a fund gave for each unit of risk it took
  • Next, we took the top 10 funds in reducing order of Sharpe ratio, and calculated their rolling returns
  • Three-year returns were calculated, at one-month intervals, rolled over five years
  • The table shows the percentage of times a fund beat its benchmark (pick fund from this table)
  • It is better to choose funds that cost less and also churn their portfolios less


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