Large Cap Funds are funds that Invests primarily in Top 100 Companies in Market Capitalisation. For a Mutual Funds to be classified as a Large Cap Scheme it has to Invest a Minimum of 80% of the assets in Equity and Equity Related Instruments. These Large Cap companies are generally the market leaders in there particular sector or business. The returns on a Large Cap Funds are very stable and very similar to the performance of an Index.
As per SEBI Scheme Categorisations the List of Large Cap Stocks are to Uploaded in AMFI Website Every 6 Months so that a Mutual Fund classified as a Large Cap Fund can Invest only on the Stocks in that List.
Investors Investing in Equity Funds for the first time can Invest in Large Cap Funds. These Funds are Generally Less volatile to the market conditions and offer lesser returns compared with Mid Cap Funds and Small Cap Funds.
Debt Funds v/s Fixed Deposits. Which is Better? A traditional and popular investment option for Indian households is a fixed deposit in a bank. Most investors use bank fixed deposits for regular income and for achieving their financial goals. However, the interest rates on the deposits are falling and investors are looking for alternate options like debt funds. Here is…Read More
Which is Better ELSS or PPF? Savings form an important part of our life. It is important that you not only save but also invest the savings into the right products. It is essential to have knowledge of different products when making an investment decision. Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF) are two products, which are…Read More
What is Value Investing? Before you invest your money in a value fund, it is important to understand how it works. Value funds follow the strategy of value investing to generate high returns on the investment. This form of investment chooses stocks that are trading at a discount as compared to its intrinsic value (Book Value). The key to value…Read More