Large & Mid Cap Fund: A Worthwhile Option for Equity Investment Given the current economic uncertainties amid global challenges relating to political developments and rising tensions across the world, the markets witnessed extreme volatility in the last one year. This is expected to continue in the short to mid-term. But the fact is that India is one of the bright spots in the global economy and one of the best ways to participate in the country’s growth story is to invest in Indian equities.
Large & Mid Cap Funds fit the parameters of stability and wealth creation. This category of Equity Fund invests 35% of the corpus of each scheme in Large Cap and Mid Cap. Large caps are the top 100 companies listed and midcaps are the next 150 companies after large caps. In fact, Midcaps are the potential Large caps of tomorrow. As a means of keeping a relatively stable portfolio, many investors go overboard on large caps. As a result, they miss out on the growth aspect of investing that can come through midcaps. In such a situation, the easiest way is to invest in large and mid-cap equity schemes.
Despite the weak sentiments at present, given the host of global uncertainties, large and midcap schemes are poised for long-term wealth creation. Through the Single plan, one gets the option of getting access to the top 250 names of the listed companies.
ICICI Prudential Large & Midcap Scheme stands out due to its consistent performance across various time frames. A Large & Midcap scheme is a worthy option for generating capital appreciation and growth over the long term while keeping the portfolio relatively stable.
Yogendra Shah,
Co-Founder, Head Distribution & Product Research,
SNMA Wealth, Noida
(This is just for the information, please consult your investment advisor before investing.)