Equity: Large Cap

What is it?

Large-cap equity funds invest in large-cap companies. According to the SEBI, the top 100 companies by market cap are large-cap companies. They have a market cap higher than 20000 crores. These funds must invest a minimum of 80% of total funds in large-cap companies.

Objective

The objective of large-cap funds is to generate benchmark-beating returns by investing in large-cap companies.

Suitability and opinion

Large-cap mutual funds are suitable for conservative equity investors looking to preserve their wealth and have a steady growth. But as more than 80% of large-cap funds fail to beat the benchmark, finding out the best large-cap funds will be futile. We feel index funds and ETFs are better options if you want to invest in a portfolio of large-cap stocks.