Wednesday, November 29th, 2023

Large mid cap fund is getting good returns, but know these things before investing


Photo: CANVA Preparing to invest, know these things related to Large Mid Cap Fund

Large mid cap funds: Large mid caps are a type of equity fund where there has been a lot of investment in the last year. Let us tell you that in the last year the number of SIP accounts has crossed the number of 6 crores, in such a situation, you can imagine that the amount of investment would have been done here. On the other hand, in equity funds, a category of large and mid cap funds is seen, where in December 2022, an inflow of Rs 11,89.50 crore has been seen. On the other hand, if you are planning to invest in mutual funds, then you must know this information related to Large Mid Cap Fund.

Know about Large and Mid Cap Funds

Explain that Large and Mid Cap Funds are considered a category of Equity Mutual Funds, where the fund manager makes a good investment in both large and mid cap companies. On the other hand, looking at SEBI rules, it is mandatory for Large and Mid Cap Mutual Fund Scheme to invest 35% of the total amount in Large Cap and 35% in Midcap. After this, you can invest the remaining amount in large cap, mid cap or small cap.

Know these things related to large and mid cap funds

Let us tell you that the top 100 companies in the stock market according to their capital are called large cap. Along with this, companies with 101 to 250 rank come in mid cap. On the other hand, it does not invest in companies with weak balance sheets, while companies whose balance sheets are weak are removed from potential investment.

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Invest in large and mid cap funds, try this right way

If you want to invest in it for a long time, then you can invest in it through SIP, which will give you better returns. If we talk about ICICI Prudential Large & Mid Cap Funds, then it has performed better in one, two and three year periods, due to which it remains at the top.

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