Learn all about Investing in Large-Cap Funds

The main difference lies in the market capitalisation of the companies they invest in. Large-cap funds focus on investing in companies with a large market capitalisation, mid-cap funds invest in medium-sized companies, and small-cap funds invest in smaller companies. Generally, large-cap funds offer more stability and lower risk compared to mid-cap and small-cap funds.
 

Large-cap funds mitigate risk by investing in well-established companies with strong financials and market dominance. These companies are often more resilient during market downturns and are better equipped to handle economic uncertainties. Additionally, the diversified nature of large-cap funds across various sectors helps reduce risk compared to funds concentrated in a specific industry.
 

Yes, many large-cap companies have a history of offering regular dividend payments. As large-cap funds primarily invest in such companies, investors may benefit from dividend income in addition to potential capital appreciation. However, it's important to note that not all large-cap funds prioritise dividend payouts, so it's essential to review the fund's investment objectives and strategy.
 

Yes, large-cap funds are often considered suitable for investors with a lower risk tolerance. These funds invest in established companies with stable earnings and market presence, reducing the potential for extreme volatility. Investors seeking a more conservative investment approach may find large-cap funds align well with their risk preferences.