Large-cap funds in India are mutual funds that invest primarily in stocks of companies with large market capitalizations. Companies with large market caps are typically established and are more stable than smaller companies. In India, large-cap funds typically invest in stocks of the top 100 companies by market cap listed on the National Stock Exchange (NSE).
They are considered to be less risky than small-cap funds since the stocks of large companies are more established and have greater stability than smaller companies. Large-cap funds are generally more liquid and less volatile, making them a good choice for investors who are looking for lower volatility and more consistent returns. Additionally, large-cap funds tend to have higher dividend yields than small-cap funds, making them attractive to income-oriented investors.
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