Is it good to invest in large cap mutual funds?

Are large cap mutual funds a good investment?

They are a good option for investors with a relatively lower risk appetite and a long-term investment horizon. According to SEBI, large-cap companies fall in the top 100 of the list of companies according to market capitalization. Hence, investing in these companies is considered to be less risky and steady.

Is it good to invest in large cap stocks?

Large-cap stocks tend to be companies that are established in their markets with long-term histories. Some feel this makes them “safer” to invest in. Larger company stocks also often pay dividends, allowing you to capture some of the return of your investment, which some investors view as a benefit.

Is large cap mutual funds risky?

Risk. Large-cap equity funds are subject to market risk, although in a moderate way. Unlike small-cap/mid-cap funds, the Net Asset Value (NAV) does not fluctuate aggressively due to fluctuations seen in the benchmark.

Which large cap mutual fund is best?

The following table shows the top large cap funds as per the past 3-year and 5-year returns:

Mutual fund 5 Yr. Returns 3 Yr. Returns
Kotak Bluechip Fund – Direct Plan – Growth 16.69% 24.26%
Canara Robeco Blue Chip Equity Fund 17.23% 24.2%
BNP PARIBAS LARGE CAP FUND DIRECT PLAN GROWTH 16.44% 23.77%
Axis Bluechip Fund 18.37% 23.67%
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Is Nifty next 50 large cap?

Nifty Next 50 consists of 50 large cap stocks that come after the top 50 (Nifty 50), in order of free float market capitalisation (cap) in Nifty 100. … It predominately captures the performance of bluechip companies in the large cap universe along with a few mid-caps.

What is India’s large cap?

Large-cap companies are businesses that are well-established and have a significant market share. Large-cap companies have market caps of Rs 20,000 crore or more. … Reliance Industries and Infosys are examples of some large-cap market companies that are listed on the stock exchanges of India.

What is Blue Chip Fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. … Blue Chip is commonly used as a synonym for large cap funds.

How do I choose a large cap fund?

When you buy largecap funds, there is a risk element and return element to it. Above all, there is also the liquidity element in the short to medium term. Your choice of largecap funds should be driven by your long term goals and also tagged to it. That is the key to investing in largecap funds.

Which is riskier large cap or small-cap?

Small-cap companies tend to be riskier investments than large-cap companies. They have greater growth potential and tend to offer better returns over the long-term, but they do not have the resources of large-cap companies, making them more vulnerable to negative events and bearish sentiments.

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How many mutual funds should I invest in?

Usually, 8-10 funds are enough for most investors to plan for their goals,” says Nisreen Mamaji, founder, MoneyWorks Financial Services. One way to diversify your MF holdings is by investing in funds of different management styles.