What does large capmeans:- There are more than 6000 companies listed on( BSE/NSE) in Indian stock exchanges. Out of these 6000 companies top 100 companies which is valued by their market capitalisation called large cap/ blue chip companies. The top 100 are not constant by nature. An adjustment takes place on quarterly basis in that a few companies are excluded and a few companies are included in the category of top 100 companies due fall and rise in their shares prices.
Nifty-50 / Sensex-30 index is constructed out of these 100 large cap companies. As its mandatory now that a large cap fund from any AMC (Assets Management Company) has to invest only in 100 company as per their own research & process.
Why Natex Capital suggest only a few large cap funds:- As data shows every large cap fund has minimum 40-50 stock in its portfolio. In that condition just a couple of large cap funds are sufficient to capture basket of large cap companies. The performance of any large cap fund might not substantially good in very short time compare to its benchmark due to varieties of reason but it tends to perform along with benchmark in longer duration.
So being focused with a few large cap fund provides stability to portfolio and remains with the research methodology of the AMC. Therefore it is best recommended to be continue with suggested large cap mutual funds by Natex Capital.com which ultimately helps you to let your financial dream comes true.
Benefit of large cap fund:-
- Invest in pioneer companies of country.
- Companies in funds are well growing established brand in worldwide
- Fund is diversified in various sector & companies
- Normally these companies are leader in their respective industry
- Financial soundness is so robust and caries legacy of trust
- Quite high entry barrier in each business
- Honest management, promoter & a professional experienced team
- Shows great dignity towards minority shareholder
- Large cap funds are less volatility then mid cap & small cap funds
- Team Natex Capital.com always walks with you and provide regular assistance to have financial freedom for every Indian Citizen.
