Fund Categories

Large Cap Fund

Large-cap funds are equity mutual funds that invest most of their money in shares of companies with high market capitalization. These companies are generally well-established and have a strong reputation in the market. A list of the top-performing large-cap funds is provided below.

Who Should Choose Large Cap Fund?

Moderate Returns: Large-cap funds usually offer moderate returns compared to mid-cap and small-cap funds because they invest in stable, mature companies.

Lower but Present Risk: These funds come with lower risk, but they still carry equity-related risks, so they are not completely risk-free.

Best for Long Term Investing: Large-cap funds generally perform well over the long term, making them ideal for investors who want to stay invested for several years and prefer steady growth over high volatility.

Factors to Consider Before Investing in Large Cap Fund

Moderate Returns: Large-cap funds generally offer moderate returns compared to mid-cap and small-cap funds because they invest in well-established, mature companies.

Lower Risk: Although they are more stable, large-cap funds still carry some level of risk, similar to other equity mutual funds.

Best for Long-Term Investors: These funds typically perform well over the long term, making them suitable for investors who prefer long-term wealth creation and steady growth.

Some Advantages of Investing in Large Cap Fund

Lower Risk: Large-cap funds carry a lower risk level compared to other equity mutual funds.

High Liquidity: Units can be redeemed anytime, and investments can also be partially withdrawn when needed.

Flexible Investment Options: Investors can choose between SIP or lump-sum based on their convenience.

Stability During Market Downturns: Large-cap companies are financially strong and can withstand economic slowdowns, offering stability to investors.

Strong Company Fundamentals: These companies have robust operations, proven business models, and a consistent revenue track record.

Sectoral Diversification: Large-cap funds invest in blue-chip companies across various sectors, helping diversify the investor's portfolio.

Risks Involved While Investing in Large Cap Fund

Market Risk: Large-cap funds can be affected by poor market performance caused by factors like geopolitical events, economic conditions, and other unpredictable influences.

Liquidity Risk: In situations where there are not enough buyers, fund managers may struggle to sell securities, making it difficult for investors to exit or redeem units quickly.

Interest Rate Risk: Rising interest rates can lead to a fall in security prices, impacting the overall value of the fund.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

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