Taurus Large Cap Fund Direct Growth

Taurus Large Cap Fund Direct Growth

An investor can choose a large cap mutual fund as Taurus Large Cap Fund Direct Growth. It was incorporated by Taurus Mutual Fund in January 2013.

The fund is benchmarked against the S&P BSE 100 India TRI and holds the moderately high risk and expense ratio among the categories.

Taurus Large Cap Fund has completed 10 years from inception and currently holds an AUM of Rs. 41.84 crore. The direct-growth plan has yielded 11.46% CAGR per year since its inception.

If you had invested 1 lakh in 2013, your fund would have grown up to 3.35 lakhs in 2024.

The minimum lump sum to start investments in this fund is Rs. 500 and the minimum SIP (systematic investment plan) is Rs. 500 per month.

Taurus Large Cap funds comprise 4 plans,

  • Direct Growth Plan (We speak about this plan in this article)
  • Regular Growth
  • IDCW
  • IDCW

Taurus Large Cap Fund Direct Growth NAV:

The current NAV of Taurus Large Cap Fund direct growth is 150.17  (as of March 1, 2024).

The NAV of other plans of the same large cap funds is

  • Regular Growth – 142.24
  • IDCW – Regular Plan – 62.31
  • IDCW – Direct Plan – 66.15

During the NFO period, all 4 plans had an NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.

Taurus Large Cap Fund Direct Growth Performance:

Taurus Large Cap Funds is an open-ended scheme that invests in large-cap companies (Top 100 companies of Indian share market per market capital).

The investment objective is to provide investors with long-term capital appreciation. Investments shall be primarily in Equity and Equity related instruments of large cap companies. The fund has performed at a CAGR of 15.27% per annum in the last 5 years vs. 17.54% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 17.54%.

Image from Moneycontrol.com

Taurus Large Cap Fund has underperformed its category average in 2 and 5 years of performance.

The fund has performed 13.48% less than the Nifty 50 index since its inception (January 2013).

A short comparison of the fund’s performance with the benchmark and category average follows.

The fund has outperformed in 2 and 5 years returns with a CAGR of 20.58% and 15.13%, respectively.

In 2 years of performance, the Taurus Large Cap Fund Direct Growth has performed 2.18% higher than the benchmark and 2.79% higher than the category average.

In the last 5 years of performance, the Taurus Large Cap Fund direct growth fund has performed 2.41% lower than the benchmark and 1.27% lower than the category average.

The same fund has outperformed than benchmark and category for the last 1 year of performance.

Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.

Fundamental Analysis Ratios:

P/B – 3.47

P/E – 18.89

Taurus Large Cap Fund Portfolio:

The portfolio of this scheme includes equity (97.11%) and Others (2.9%).

Equity Holdings (97.11% of total portfolio):

The fund holds 33 company stocks and is subdivided into three types of classes (as per market capital),

  • Large Cap Companies – 67.72%
  • Mid Cap Companies – 7.34%
  • Small Cap Companies – 1.66%
  • Others – 20.39%

Fund Portfolio across Industries:

  • Financial – 24.1%
  • Technology – 14.8%
  • Services – 5.4%
  • Energy – 15.5%
  • Automobile – 10.5%
  • Consumer Staples – 6.2%
  • Health Care – 9.6%
  • Others – 13.9%

Top 20 Holdings:

  1. HDFC Bank Ltd – 8.39%
  2. HCL Technologies Limited – 7.53%
  3. Coal India Ltd – 5.60%
  4. State Bank Of India – 5.27%
  5. Axis Bank Ltd – 5.04%
  6. ICICI Bank Ltd – 4.73%
  7. Infosys Ltd – 3.88%
  8. ITC Limited – 3.83%
  9. Mahindra & Mahindra Ltd – 3.32%
  10. Tech Mahindra Ltd – 3.00%
  11. National Thermal Power Corporation Ltd – 2.93%
  12. Life Insurance Corporation Of India – 2.90%
  13. Computer Age Management Services Pvt Ltd – 2.85%
  14. Maruti Suzuki India Ltd – 2.81%
  15. Cipla Ltd – 2.50%
  16. Info Edge (India) Ltd – 2.37%
  17. Apollo Hospitals Enterprises Ltd – 2.30%
  18. Sun Pharmaceutical Industries Ltd – 2.29%
  19. Eicher Motors Ltd – 2.25%
  20. Dr. Reddys Laboratories Ltd – 2.20%

The Top 5 securities of this scheme cover 31.83% of the overall portfolio, and the Top 20 securities cover 83.28%

Taurus Large Cap Fund Direct Growth Risk Ratios:

While investing in mutual funds, you should know the methods of analyzing the risk ratio of any fund.

Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.

Here are the details of the 3-year risk factors of the fund vs. category average.

  • Standard Deviation – 15.39 vs. 13.92
  • Alpha – (-) 1.64 vs (-) 0.26
  • Beta – 1.01 vs 0.94
  • Sharpe Ratio – 0.67 vs 0.75

The fund has moderately high risk compared to the category average and benchmark.

Taurus Large Cap Fund Expense Ratio:

The expense ratio plays a crucial role and impacts the performance of any mutual fund scheme.

The expense ratio or TER of Taurus Large Cap Fund Direct Growth is 2.55%.

The TER of the category average is 0.99%. This is an important reason why the fund has outperformed the category average and benchmarks in the long term (5+ years).

Here is the expense ratio detail of the same fund with different plans

  • Regular – Growth – 2.62%
  • Regular – IDCW – 2.62%
  • Direct – IDCW – 2.55%

So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year and 1% if redeemed within 365 days.

Taurus Large Cap Fund Manager:

Every mutual fund investor must know about the fund manager and their history.

Anuj Kapil manages this fund. He has been managing this fund since June 2023. He has overall experience of 17 years in Managing wealth management and handling Risk Management Processes for various Corporates. 

Before joining Taurus Large Cap Fund, he worked with Religare Securities Ltd. and FCH Centrum Wealth Managers Ltd. Apart from this fund, he manages 7 more schemes at Taurus AMC.

Conclusion:

  • Taurus Large Cap Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
  • This fund is one of India’s top picks in large-cap mutual funds.
  • Two years and five years of performance is high compared to the benchmark and category average.
  • The expense ratio of this fund is higher than the category average.
  • Portfolios are well diversified within 33 equity securities and a few cash components.
  • Hold moderately high risk compared to the category average.
  • The fund manager’s track record is awesome.