Is Nippon India Large Cap Fund Right for Your Portfolio?
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One of the most common investment options preferred by those who are looking for slightly lower risk but predictable returns is large-cap mutual funds. One of the options to consider is the Nippon India Large Cap Fund, providing the unit holders the investment in a large capital-dominant company with having good track record. However, it is safe to ask and wonder if this is right for your investment portfolio. That is why let us discuss its key peculiarities and compare it to such similar funds as SBI Large and Midcap Fund to make it easier to choose.
Understand What Is Nippon India Large Cap Fund
A lot of investors do not understand their respective mutual fund schemes. Therefore, an understanding of the Nippon India Large Cap Fund means better investment knowledge for the investors.
The Nippon India Large Cap Fund has large-cap fund allocation standards primarily; it invests in companies with a market capitalization of 100 or more. These are mainly market leaders with good operational records and financials, and therefore, their stock prices are less risky than mid-cap or small-cap stocks. The main objective of this fund has been focusing on compounded returns due to stability and growth in these large-cap companies.
How Does It Differ FromSBI Large And Midcap Fund?
The Nippon India Large Cap Fund invests only in stocks of large-cap companies, while the SBI Large and Midcap Fund invests in both large-cap and mid-cap companies. This makes the SBI fund have higher returns than the Nifty but, at the same time, slightly risky than the Nifty due to the midcap stocks.
For the investor looking to invest in both large and mid-cap funds, the SBI Large and Midcap Fund is perfect. Conversely, the investors, who seek low risk with healthy returns may be inclined to consider the Nippon India Large Cap Fund.
Is Nippon India Large Cap Fund for You?
The Nippon India Large Cap Fund is one of the solid choices for those seeking constant returns and long-term, usually high returns. It benefits the person who is very conservative with his investments and the individual who is newly seeking to make his investment portfolio.
However, you need to evaluate your money vision and your tolerance to risk. For those who can take more risk, one should diversify this fund with other aggressive funds like the SBI Large and Midcap Fund.
Conclusion
Thus, the Nippon India Large Cap Fund is a good fund option for stability seekers. Side by side, you can follow how it fares with other funds, such as the SBI Large and Midcap Fund, before making a decision based on your investment goal. Please remember that effective investing strategies are all centred on the ability to match the type of portfolio to the risk tolerance and investment goals.
