Everything About Large Cap Fund

A large-cap mutual fund is a type of mutual fund that invests in companies with a large market capitalization, generally ranked among the top 100 listed companies in India. These companies are considered to be established and financially stable, and they often have a strong market presence and a track record of stable earnings. Large-cap mutual funds are popular among investors who are looking for long-term investment options with relatively low risk.

Features:

• Large-cap funds invest in blue-chip companies with a market capitalization of more than Rs.10,000 crores.

• These companies are large and stable businesses with the capability to weather market volatility.

• The demand for these stocks is high, which makes them highly liquid.

• Their growth potential may be low as compared to Mid and Small cap Funds, but so is the risk suggesting these funds generally bring modest but consistent returns over the long term.

• Minimum 80% of the corpus needs to be invested in shares of large-cap companies.

Overall, large-cap mutual funds can be a good investment option for investors who are looking for long-term investment options with relatively low risk. However, investors should carefully consider the fund's investment objective, performance, expense ratio, and fund manager before making an investment decision.