Understand the Large Cap, Mid Cap, Small Cap and Flexi Cap funds

Large Cap Mutual Funds: As the name implies, these funds invest a significant portion of their capital in large-capitalization companies that have built a certain reputation and trust. These companies are usually part of large cap indexes such as Nifty 50 and Nifty Next 50. These companies are usually leaders in that segment and have strong corporate governance practices backed by established financial performance. If you want to invest from a long-term perspective and want a stable and consistent return while reducing risk, then a large equity fund is ideal because it is less likely to cause problems, if not impossible. Large-cap funds can generate decent returns and steadily increase wealth. 

Mid Cap Mutual Funds: These companies or companies may actually be better than large caps in the bull market, but the underlying stocks are basically more volatile than large caps, so the risk is correspondingly higher. .. If you need higher returns and are willing to take that risk, you can include a certain percentage of medium-sized funds in your portfolio. Remember to maintain diversification, as midcap funds are for people who are willing to take a little more risk in the hope of getting much higher returns. 

Small Cap Mutual Fund: Small cap stocks generally have the highest growth potential and therefore carry the highest risk. Many of these small businesses have very aggressive growth plans, but they are also vulnerable to a variety of external threats that make it difficult to survive a recession. Small caps may make sense if you are risk-tolerant and are saving money that you can afford to lose, or if you strongly believe that a particular small business has great potential. 

Flexicap Cap Mutual Fund (All-in-One): However, if you really want all three worlds, there is a multicap fund that invests various investment funds with stock capital of stock throughout the market capitalization spectrum. Usually, these funds are ineffective in capitalization and are investing in large stockspred stocks based on common market conditions and the situation of the expected market. Multicap funds are ideal for those who are at risk of lowering their appetite, but pop more. Whether you concentrate on large, middle or multicap funds, your financial goals are coming back and your risk capabilities. Traditionally, most investors do not have a corresponding risk change, but prefer to a good cap for stability and small caps. Disclaimer: Investment fund investment is subject to market risk and carefully reads all systems. The content described here is dedicated to information and does not apply as invitations and investment invitations and guilty decisions. ISEC and affiliates do not assume debt for any type of loss or damage resulting from all types arising from the action associated with adoption.