8.23Large-cap funds
1What is it?
Large-cap funds invest at least 80% in the top 100 companies by market cap.
2Why does it exist?
Established companies; relatively stable within equity.
3Diagram
| Invests in | Suits | Risk | Suggested horizon |
|---|---|---|---|
| Top 100 companies (80%+) | First equity fund, conservative equity investors | Moderately high | 5+ years |
4Quick revision
- Large-cap funds invest at least 80% in the top 100 companies by market cap.
- Risk: Moderately high.
- Horizon: 5+ years.
5Knowledge check
Q1. Large-cap funds invest in which companies?Show answer
The top 100 by market cap.
Q2. Minimum allocation to large caps?Show answer
80%.
Q3. Hard for active large-cap funds to beat what?Show answer
The Nifty 50/100 index, after fees.
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