Mutual Fund Portfolio
1 WHAT ARE LARGE-CAP FUNDS?
These are Equity Funds investing you money in Stocks of large companies. The companies are also stable and established.
2 HOW DO THEY DIFFER FROM OTHER EQUITY
Equity Funds, by default, invest in Stocks. However, there are different types of Stocks. Usually, a particular Equity Scheme invests only in one type of Stocks. For Large-Cap Schemes, the Fund only invests in the Stocks of companies that are worth over 10,000 crore.
3 WHY ARE LARGE-CAP FUNDS A MUST-HAVE?
As an investor, especially a new one, you are always looking to minimize risks. As a result, entering the Equity market may be worrisome. So, you may want to invest in companies that have the least risk. This means, investing in large, that established companies with a solid growth record and stable future.
That’s what Large-Cap Funds do.
4 WHY DO LARGE-CAP FUNDS HAVE LOWER RISK?
Large companies are usually stable. So, they do not see bouts of volatile earnings. They are often well-shielded from economic problems. If not, they have the capacity to withstand Stocks. And Stock prices usually mimic the company’s profitability. So, such Stocks are less volatile than Stocks of smaller companies. As a result, they tend to give stable returns with lower risks.
5 WHO SHOULD INVEST IN LARGE-CAP FUNDS?
Investors who can afford to take on some risk can invest in Equity. And, every Equity-friendly investor can, and should invest in Large-Cap Funds. In fact, there is recommendation. The investors can diversify Equity portfolio of Large-cap Funds, Mid-Cap & Small-Cap Funds, and even Sectoral Funds.
6 WHY ARE LARGE-CAP FUNDS RECOMMENDED FOR BEGINNERS?
If you are Just starting to invest in Equity, then Large-Cap Funds are great to begin with. This is because these Schemes invest in brands and companies that you are likely to have heard about. This makes also it easier for the investors to understand the business.
7 HOW DO LARGE-CAP FUNDS SCORE VERSUS OTHER ASSETS?
There’s another reason why large-cap Funds are a must-have. They usually give better returns than other asset classes and even the benchmark. Not only above these, but also you may follow the next………….
Mutual Fund Portfolio
YOUR RIGHTS AS A MUTUAL FUND UNIT HOLDER
How to begin investing in Mutual Funds
HOW TO START MANAGING YOUR PORTFOLIO