Large & mid cap mutual funds primarily invest in large and mid cap stocks, as mandated by Sebi. These open-ended equity schemes allocate at least 35% of their assets to large cap companies and another 35% to mid cap stocks, striking a balance between risk and stability.
However, the 30% remaining corpus gives fund managers flexibility to adjust their investments based on market conditions. This dynamic approach can either increase or decrease the risk associated with these schemes, making them suitable for aggressive investors willing to take on extra risk.
Before Sebi’s categorization of mutual funds, many equity funds already had significant exposure to large and mid cap stocks. This trend continues, with some funds leaning towards large caps for safety, while others tilt towards mid caps for growth potential.
DailyBubble recommends considering large & mid cap schemes for long-term investors with a higher risk tolerance. Some top picks for June 2024 include Axis Growth Opportunities Fund, Mirae Asset Large & Midcap Fund, Canara Robeco Emerging Equities Fund, Sundaram Large and Midcap Fund, Kotak Equity Opportunities Fund, and Quant Large & Mid Cap Fund.
When evaluating equity mutual fund schemes, DailyBubble focuses on mean rolling returns, consistency, downside risk, outperformance, and asset size. These factors help investors make informed decisions while understanding that past performance does not guarantee future results.
In conclusion, large & mid cap mutual funds offer a balanced approach to investing in the stock market, catering to different risk appetites and market conditions. It’s essential for investors to align their investment goals and risk tolerance with the fund’s strategy to achieve long-term success. Welcome to DailyBubble, where we bring you the latest news and updates on all things entertainment! Whether you’re a movie buff, TV fanatic, or music lover, we’ve got you covered. From breaking celebrity news to in-depth interviews with your favorite stars, DailyBubble is your go-to source for all things pop culture.
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