What are the Large-cap and Mid-cap and small-cap mutual funds ?
Large-cap, mid-cap, and small-cap mutual funds are categories of mutual funds that invest in companies with different market capitalizations. Here's a breakdown of each category along with examples of mutual funds in India:
- Large-cap mutual funds: Large-cap mutual funds primarily invest in companies with a large market capitalization. These companies are well-established and considered leaders in their respective industries. Large-cap funds aim for stable growth and typically offer relatively lower risks compared to mid-cap and small-cap funds.
Example of Large-cap mutual fund in India:
- SBI Bluechip Fund
- HDFC Top 100 Fund
- ICICI Prudential Bluechip Fund
- Mid-cap mutual funds: Mid-cap mutual funds invest in companies with a medium market capitalization. These companies are typically beyond the start-up phase, have demonstrated growth potential, and offer higher growth prospects than large-cap companies. Mid-cap funds generally carry higher risks but can offer higher returns.
Example of Mid-cap mutual fund in India:
- DSP Midcap Fund
- Aditya Birla Sun Life Midcap Fund
- Kotak Emerging Equity Scheme
- Small-cap mutual funds: Small-cap mutual funds invest in companies with a small market capitalization. These companies are often in their early stages of growth and have the potential for significant expansion. Small-cap funds tend to be more volatile and carry higher risks but can offer the potential for substantial returns.
Example of Small-cap mutual fund in India:
- HDFC Small Cap Fund
- Axis Small Cap Fund
- SBI Small Cap Fund
It's important to note that mutual fund performance can vary, and it's crucial to conduct thorough research, consider your investment goals and risk tolerance before investing in any mutual fund.
