- Date : 09/08/2022
- Read: 3 mins
Best large cap mutual funds in 2022!
The year 2022 has been volatile because of the Russia-Ukraine war and the high inflation globally. Now with Nancy Pelosi’s visit to Taiwan, the volatility is expected to increase. The Federal Reserve in the United States has been increasing the interest rates this year, and the RBI has had to follow the interest rate hiking cycle because of the high inflation. This is resulting in high volatility for the stock markets, and the volatility is expected to continue this year.
In such a volatile environment, largecap stocks usually outperform the smallcap and midcap companies. Largecap mutual funds in India are mandated to invest in the top 100 companies only, and SEBI is responsible to ensure that the schemes do not violate the mandate. Large caps are expected to outperform the other companies because they are usually their respective sectors' market leaders. If you want to invest in largecap mutual funds, here we have compiled the best large cap mutual funds for 2022.
Best Large-cap mutual funds to invest in 2022
The best largecap funds are expected to provide returns of 10-12% in the long term. Also, the largecap funds are less exposed to market volatility and risk because these are usually big companies. But the downside is that you cannot get very high returns from largecap schemes. This is because these are already big companies, and there's a limit to the growth potential of big companies. But if you are an investor who is looking for consistent long-term returns, you should check out these largecap schemes.
These mutual funds have given consistent returns in the long term, and these should be a good bet for the long term. Also, as mandated by SEBI, these schemes invest in top 100 companies by market capitalization only. Your funds should remain secure if you invest in these companies, and you should make a 10-12% CAGR in the long term, which will help you to create long-term wealth.
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In the current volatile environment, you should consider these largecap schemes given above. These largecap schemes should be able to meet your investment needs and help you to create long-term wealth. You should diversify your portfolio by dividing the amount into various schemes so that you are protected from concentration risk. Also, you should remember that past returns are no guarantee of future returns, so you should make your investments accordingly.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.