How do Large Cap Mutual Funds Work?

Large Cap Mutual Funds pool money from multiple investors to invest in a diversified portfolio of stocks from India's top 100 companies by market capitalization. These mutual funds mandate a minimum 80% investment in large-cap stocks. Fund managers analyse market trends, company financials, and economic factors to select stocks with the potential for capital appreciation and consistent returns.

These well-established players' stability provides the security required for the portfolio. This balance between growth and stability makes large cap funds suitable for various investment goals and indispensable for investors seeking a diversified portfolio.