SIP Planning: When Large Cap Funds Are Better For Investing

SIP Planning: When Large Cap Funds Are Better For Investing

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Aug 29, 2023

Rajeev Kumar

Investing in Mutual Funds via SIP can help you generate wealth in a disciplined way. However, it might be difficult to choose the right fund. Here’s a look at when Large Cap Funds may be better

Like elephants, large cap funds are considered more stable with potential to deliver steady returns in the long run.

Investing in Large Cap Funds can be better than small and mid cap schemes when you are seeking stable growth over the long term.

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Large Cap Funds offer exposure to well-established companies with lower risk levels.

Experts suggest that investors with a low-risk appetite can benefit from the consistent returns provided by large-cap funds.

Large Cap Funds invest in the top companies with a market cap ranking from 1 to 100.

What are Large Cap Funds?

These companies are giants in their respective industries and usually have a market cap of Rs 60,000 crore or more.

To be categorised as a Large Cap Fund, 80% of the total assets must be invested in these large-cap companies.

There is no one quick formula to find best large cap funds for investing. Ideally, you should consult a SEBI-approved financial/investment advisor to find the best fund that may be suitable for your goals.

There is no quick formula to find the best large cap funds for investing. Ideally, you should consult a SEBI-approved financial advisor to find the best fund that may be suitable for your goals.

How to find the best Large Cap Fund for investing?

Next: SIP Decision: When Small Cap Funds Are Better For Investing

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