What Are The Benefits Of Investing In Large Cap Funds?
Investing in large cap mutual funds can be a sound financial strategy, especially for those looking for a blend of stability and sustained growth over the long term. Large cap mutual funds primarily invest in the stocks of well-established companies with a significant market capitalization, usually exceeding ₹20,000 crore. These companies are leaders in their respective industries and are known for their consistent performance in various market cycles. Primarily, the foremost benefit of investing in large cap mutual funds is the inherent stability they offer. Large cap companies are generally more resilient to market fluctuations and economic downturns compared to their mid-cap and small-cap counterparts. Their established market presence, strong balance sheets, and dependable revenue streams contribute to lower volatility, providing a more secure investment avenue. For instance, investing in a large cap fund like HDFC Top 100 Fund, which has consistently delivered around 12% an...