What Are Large-cap Funds?
Large-cap funds are mutual funds that invest a major proportion of their assets under management (AUM) in equity shares of companies with a large market capitalisation. These companies are often leaders or have leading market share in their domain of expertise, such as TCS for IT or ITC for consumer goods etc.
These companies are also mostly known by every investor, thanks to their large base of users and market position. They are also known to enjoy a high reputation in the market and any unexpected news about them can have an adverse impact on the entire sector. Finally, large-cap funds also attract investment from foreign investors as they are considered safer options compared to mid-cap and small-cap funds.
Reasons To Invest In Them