The new year has started, and so many of your yearly planning must be brewing including your financial planning, for your future goals. Well, today we are here with the most recommended Large-Cap mutual funds, where any individual can consider their investment in the year 2020.
What Are Large-Cap Mutual Funds?
Large Cap Mutual funds is an open-ended equity scheme, that invests a minimum of 80% of its assets in the Large-cap companies, which is the top 100 companies in terms of market capitalization. Large-cap funds are also popular as Bluechip Fund.
Investors investing in large-cap funds can maintain a stable portfolio, as these funds are less volatile than other categories of Equity Fund, which is Small-cap and Mid-cap funds. However, large-cap funds generate relatively lower returns than small-cap and mid-cap equity funds.
Who Should Invest in Large-Cap Mutual Funds?
Mutual funds advisors and experts generally advise those investors to invest in Large-cap funds, who are typically cautious towards risk and are looking to create wealth without taking too much risk and volatility. The investment strategy used by large-cap mutual fund managers makes it an ideal investment option for conservative equity investors.
The large-cap companies in which large-cap fund assets are invested, maintain a proficient and consistent performance during the market fluctuations, this makes the large-cap funds a suitable investment option for investors with the moderate risk profile and for new or first-time investors.
Benefits of Investing in Large-Cap Funds
Many mutual fund advisors suggest investing in large-cap mutual funds during uncertain times as Large-cap stocks fare better than mid-cap and small-cap stocks in times of a market correction.
1. Risk and Volatility
Large-cap mutual funds are relatively less risky and volatile than its counterparts, mid-cap, and small-cap mutual funds. Large-cap funds are subject to market risk, but in a moderate way, the NAV (Net Asset Value) of large-cap funds, do not fluctuate aggressively on account of ups and downs of the benchmark, hence investors of large-cap funds can maintain a stable portfolio.
2. Balanced Dividend
As the large-cap companies in which large-cap fund assets are invested maintain consistent performance during market volatility, thus these organizations do provide steady payment of dividends to its investors, these steady dividend payments give appealing returns for large-cap investors.
3. Simplified Valuation
These large-cap companies are functioning in the market for many years, hence it becomes easy for the investors to know about the profits and other financial details of the company. This will help the investors to access the performance history of the companies, and they can construct an accurate portfolio with large-cap funds.
Top 10 Large-Cap Mutual Funds to Invest in 2020
We have prepared a list of top 10 best recommended large-cap funds, for the financial year 2020, after a good analysis of different large-cap funds. These funds have been selected on the basis of their past returns and performance.
If you also want to create wealth without taking too much risk and volatility, you may invest in these schemes with a minimum investment horizon of five to seven years to achieve your long-term financial goals.
Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).