In today's market, mutual fund managers and advisors recommend large cap funds for improved performance. Large cap stocks, with stable valuations, are considered favorable compared to the recent rapid gains in mid and small cap stocks.
Understanding Large Cap Funds
Large cap funds concentrate on the top 100 stable stocks, providing a safer investment option in uncertain markets. Ideal for those aiming for growth with reduced risk and volatility.
Is It Time to Invest?
For conservative investors with a 5-7 year horizon, prioritizing stability and risk avoidance, consider investing in large cap funds.
Don't worry about short-term dips in your investment ranking. It's normal for some schemes to be in the lower quartiles temporarily. Be concerned only if underperformance persists for over a year.
Thinking About Active Funds
Some believe active large cap schemes may struggle to outperform benchmarks next year. If you prefer passive or index investing, consider low-cost Nifty-based index schemes with minimal tracking error.