Large Cap Equity Mutual Fund Schemes

Best Large Cap Mutual Fund Schemes For Investment

Large Cap  Equity  Mutual Funds

Meaning:   Large-cap equity funds is a type of mutual fund that invest a larger proportion of their corpus in companies with large market capitalization. Large-cap companies are well-established players with a good track record and vintage and they typically have strong corporate-governance practices.

 To add on, equity is classified in 3 categories in the following manner:

Large-cap Companies – Market cap > ₹10,000 crore

Mid-cap Companies – ₹500 crore < Market cap < ₹10,000 crore

Small-cap Companies – Market cap < ₹500 crore

Who should invest :
As mentioned above, large-cap equity funds invest in large firms.Their endeavor is to provide better capital appreciation over a long term and distribute dividends fairly regularly. Large-cap are an avenue for those who want to take advantage of equity investments but do not want their returns to fluctuate more than the market (i.e. Sensex or NIFTY).

 Do not expect these funds to perform erratically, as these have several years of history indicating sturdy performance during both market lows and highs. Returns from these funds will be less volatile, which should be the draw when investing in them. Do not feel let down if these funds don’t post high returns even when the market is on peak.

Advantages Of Large Cap Equity Mutual Fund Schemes:

Liquidity :

Equity Large mutual fund schemes are liquid. They offer you an opportunity to redeem your investments at any time. That means you can redeem all your investments in the time of need or at a Net Asset Value (NAV) higher than NAV at the time of purchase. You can even invest more in equity mutual fund schemes during the market fall to buy units at lower NAV

Systematic/ Regular investments :

Equity Large mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP). SIP makes it simpler for the beginners to invest in equity mutual fund schemes.

Tax benefits:

 If the investment period in equity mutual funds scheme is more than one year the capital gain is exempted from tax liabilities. Government of India also provides tax rebate for equity linked saving schemes (ELSS) u/s 80C of Income Tax Act 1961. You can invest into ELSS and deduct upto Rs. 1,50,000/- from your taxable income to effectively  tax liability.

 Stability : 

The large cap funds are less fluctuated as market moves rigorously and they provide stable returns to investors.

 Capital Growth :

 As investment is done in large repudiated companies
which have benchmark in market , they tend to provide good returns.( Avg:7.95% For 6 Months , Avg:20-35% For 1yr,Avg:9.5% For 3yrs)

Diversity :

 Such large cap funds are managed by professional fund managers and research analyst which invest the total investment in many sectors which minimizes the risk and returns are good.

 Some Example of Best Large Cap Equity mutual fund Schemes :

Large Cap Equaity Mutual Fund Schemes

For More details of some other Schemes Click This Link:

http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/large-cap.html