Equity: Large and MidCap

What is it?

Large and mid-cap equity funds invest in large and mid-cap stocks. The SEBI has defined the first 100 companies by market cap as large-cap companies, and the next 101 to 250 companies by market cap as mid-cap companies. Funds must invest at least 35% of their total assets in large and mid-cap stocks, respectively.

Objective

The objective of these funds is to generate maximum returns by investing in large-cap and midcap companies.

Suitability and opinion

Large and midcap funds are best suited for investors with moderate to high-risk appetites. These funds give the fund manager much-needed flexibility. Investors can expect wealth creation in the long run from this fund. We do, however, feel flexicap funds can be a better option compared to large and mid-cap funds.