Equirus Wealth
05 Dec 2022 • 5 min read
While each company is unique, it is possible to use a company's total market value to establish a context for evaluating financial performance and business outlook.
The total value of all a company's shares of stock is market cap. It enables investors to understand the size of one company compared to another. Market capitalization measures a company's open market value and the market's perception of its prospects, reflecting what investors are willing to pay for its stock.
You Might Find Interesting - Understand the Risks in Your Mutual Fund Investments
Large-cap Mutual funds are a type of equity in which you can invest funds in a large portion of large market capitalization companies. These are primarily large corporations with large businesses and teams—for instance - Blue chip stocks. These funds have a Market capitalization of Rs. 20,000 crores or more.
According to data released today by the Association of Mutual Funds in India (AMFI), large-cap mutual funds had the highest average net asset under management (AUM) in July.
The following are some advantages of investing in Large Cap Mutual Funds:
Essential factors to consider when selecting the best large-cap mutual funds:
Mid-cap funds make investments in mid-sized businesses. Mid-cap funds invest in stocks of companies that are still in development. These are mid-cap corporations that fall somewhere between large and small-cap stocks. They fall between the two extremes in every important metric, such as company size, client base, revenue, team size, etc. These funds have a market capitalization of Rs. 5,000 crores – Rs. 20,000 crores.
The following are some advantages of investing in mid-cap funds:
Essential factors to consider when selecting the best Mid-cap mutual funds:
The capitalization of the company you invest in is an essential factor to consider when deciding what goes into your equity portfolio. Though these funds are riskier and more volatile in the short to medium term than other equity-oriented funds, they offer a higher upside in the long term. These funds have a Market capitalization below Rs. 5,000 crores.
The following are some advantages of investing in Low Cap Mutual Funds:
Essential factors to consider when selecting the best Mid-cap mutual funds:
A portfolio composed solely of stocks in a single market-cap category may exhibit different reward and risk patterns than a more broadly diversified portfolio. While diversification does not guarantee a profit or eliminate risk on its own, a well-diversified portfolio will have profits in one area that can help compensate for losses in another.
Wealth Services
Top Mutual Funds
3Y Returns
Nippon India CPSE ETF AUM: 42,632 Cr | 55.93 |
Nippon India ETF Nifty PSU Bank BeES AUM: 2,759 Cr | 44.78 |
Kotak Nifty PSU Bank ETF AUM: 1,478 Cr | 44.73 |
ICICI Prudential Bharat 22 ETF AUM: 18,904 Cr | 41.84 |
ICICI Prudential Bharat 22 FOF AUM: 1,577 Cr | 41.50 |