Large caps are beaten, Chance for cost averaging!

 

These are the funds which park major corpus in the companies with large market capitalization. Large cap funds are the backbone of any investment portfolio. These funds do not deliver exceptional returns but prove to be a safe heaven during the fall in Nifty & Sensex. However in the recent fall major correction has been seen in the large cap stocks whereas the midcaps withstood the global shock.

Such corrective action would be heart breaking for the recent investments made but this is the time to bear some pain before gains. As the large cap stocks have corrected now is the chance to make fresh investments and take the benefits of cost averaging by accumulating more units at lower cost. The crowd whose investments are ongoing through SIP route should hold their seats as they are the best benefited during the downfalls. Below mentioned is one of the picks of 2016 from large cap category.

UTI Equity Fund Growth is an open ended fund having eyes on large cap stocks and approximately 95% exposure to Equity instruments.

UTI Equity Fund Growth Weekly Chart:

stocks contributing 23.06% to the entire portfolio. Top Holdings and Sector Allocation for this fund are shown below.

Top Holdings:

sector-allocation-20160112

Risk Profile: This fund has complete exposure in Equity instruments hence we consider this fund as High Risk hence only Risk taking investors should invest in this fund once the corrective action gets complete.

In a nutshell, this is not the right time to enter in this fund because we still expect deeper retracement towards 95 levels which will provide good entering opportunities on handful of positive confirmations. Till that time Investors can park their money in debt funds which will help them fetch some returns and once the clear trend in equity emerges investors can switch to Equity Systematically.

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