When an array of Equity Funds spoil you by choice, trust Large-Cap Funds 

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<p>Large Cap Funds invest your money in Stocks of large companies that maybe more stable and established.</p>

<h2 style="font-size: 21px">HOW DO THEY DIFFER FROM OTHER EQUITY FUNDS?</h2>

<p><a href="https://www.utimf.com/mutual-fund-products/equity-mutual-fund">Equity Funds</a>, by default invest in Stocks. However, there are different types of Stocks. Usually, a particular Equity Scheme invests predominantly in one type of Stocks. In the case of Large-Cap Schemes, 80% of its total assets in Equity and its related securities of large cap firms.</p>

<h2 style="font-size: 21px">Why Large Cap Funds can be preferred?</h2>

<p>Large Cap companies are typically well established and have a long track record. Moreover, the company&amp;#39;s information is conveniently accessible to investors at all point in time. Insights about the companies can be easily gauged from the periodically published financial statements and reports. &middot; Large Cap stocks provides easy liquidity to your portfolio relative to stocks in other market cap. Therefore, a portfolio of large cap stocks are preferred for building one core equity portfolio for achieving one&rsquo;s <a href="https://www.utimf.com/articles/wealth-creation-through-mutual-funds/">l… wealth creation</a> goals. &middot; Large Cap funds typically invest in different sectors, thereby introducing diversity to the portfolio. A diversified portfolio reduces the concentration risk and also helps in generating stable returns. &middot; Large Cap funds are also preferred for their relatively lower risk and potential of generating consistent returns, thereby providing for stability in one&rsquo;s portfolio.</p>

<h2 style="font-size: 21px">WHO SHOULD INVEST IN LARGE-CAP FUNDS?</h2>

<p>These funds are suitable for the new investors and a Systematic Investment Plan (SIP) aids in dealing with the volatile in equity market more efficiently. &middot; An existing investor wanting to build his core equity portfolio may consider investing in large cap fund for achieving his wealth creation goals. &middot; It is recommended to those who are looking at a long-term investment horizon, preferably 5 years or above.</p>

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