Large Cap Funds
Invests in India’s top 100 companies by market cap. Typically less volatile than mid- and small-cap funds, making it suitable for stable long-term equity growth.
Many active large-cap funds have underperformed the Nifty 50/Sensex after costs over 10+ years. Compare against a large-cap index fund before choosing.
Suited role in a portfolio
Core equity allocation - forms the foundation of most long-term equity portfolios
Suitable holding period
5+ years
Drawdown to expect
Nifty 50 fell ~38% between Jan 2020 and March 2020, ~16% between Oct 2021 and Jun 2022.
Taxation
Taxed as LTCG (lower) when held for 1+ years or as STCG (higher) when held of < 1 year
Suited role in a portfolio
Core equity allocation - forms the foundation of most long-term equity portfolios
Suitable holding period
5+ years
Drawdown to expect
Nifty 50 fell ~38% between Jan 2020 and March 2020, ~16% between Oct 2021 and Jun 2022.
Taxation
Taxed as LTCG (lower) when held for 1+ years or as STCG (higher) when held of < 1 year