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Can I rely on large cap mutual funds?


I have a query regarding mutual fund. Can I rely completely on large cap mutual funds? If yes, then which mutual fund scheme?
–Amogh Deshpande


We don’t know why you are asking this question. If you are wondering whether large cap funds are enough to achieve your long-term goals, the answer is yes. You can rely on large cap mutual funds. If the superior returns offered by mid cap funds, small cap funds, thematic funds, among others, is why you are asking this question, you should remember that you should choose mutual funds based on your risk profile. For example, if you want to grow wealth without too much volatility over a long period of time, you should invest in large cap mutual funds. Large cap funds invest in the stocks of very large companies.Very large companies fare better in trying times or volatile times because they may be leaders in their respective area. In short, if you want to create wealth without taking too much risk, you should consider investing in large cap mutual funds. Here are our recommended large cap mutual funds:
Best large cap funds

If you asked this question because of the relative under performance of actively-managed large cap funds vis-a-vis their respective benchmarks and index schemes, it is true that actively-managed large cap funds have struggled to beat their respective benchmarks in the last three years. Many investors have started investing in large cap index schemes. There is no consensus on the issue. Many experts believe actively-managed large cap schemes will make a comeback since cheap money is no longer chasing stocks.



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