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Mutual Funds - What Are Large-Cap Mutual Funds And Where Do They Invest?

01 Nov 2018

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Large-cap funds invest in stocks which are classified as large-cap or those which have the highest market capitalisation.

According to the new Securities and Exchange Board of India guidelines, schemes classified as large-cap can invest a minimum of 80% of their assets in the top 100 listed stocks. This defines the large-cap universe as the top 100 stocks by market capitalisation listed on exchanges. The rest 20% can be invested in mid- or small-cap stocks. These large-cap stocks are also known as bluechips and usually represent companies which are market leaders in their respective sectors or industries.

The category norm defined here is relevant for actively managed large-cap funds. You can also invest in passive large-cap funds whose underlying portfolio mirrors indices like S&P BSE Sensex and Nifty 50.

Source: Live Mint BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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