The differences between small-cap, mid-cap, and large-cap mutual funds in India

Large Cap Mutual Funds:
Large cap mutual funds are the investments that divert their corpus for investing in those companies that have a huge market capitalization or have a net worth of Rs. 20,000 crores or more. They have a substantial market hold and are known to provide stable and viable returns over a period of time. These corporations are well-established players with an impeccable track record.
Small Cap and Mid Cap Mutual Funds
The mutual funds are classified on the basis of the market cap if they invest in a particular size of a company. Hence, Small Cap Mutual Funds and Mid Cap Mutual Funds are those funds which invest primarily in securities of Mid Cap and Small Cap companies. Simply put, these are the companies that rank after the top 100 companies in the country in terms of market capitalization.
These funds are highly sensitive to market fluctuations. They can deliver very good returns if the market is doing good and on the other hand, they can lose valuation very quickly if the market goes down.
To know more, please visit: https://wealthapp.com/

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