Large and mid-cap can be a good option if you are planning to invest in mutual funds in Diwali. According to the official website of the Association of Mutual Funds in India (AMFI), large and mid-cap has given a return of up to 29.22% in the last year.
This return is till October 18, 2024. By investing through a Systematic Investment Plan (SIP) for a long time, you can make good returns in this fund. Now let us first know about large and mid-cap mutual funds.
What is a large and mid-cap funds?
Large and mid-cap mutual funds are equity funds that invest in the top 200 companies in the country. It includes companies with large and mid-capitalization. Investing in this category of funds gives higher returns than pure large-cap funds.
Large and mid-cap funds investment through SIP is more beneficial in the long run.
It is often seen that investing in equity funds proves to be more beneficial in the long run. The reason for this is that doing SIP in equity funds for a long time reduces the risk of fluctuations. An average return of the low and high levels of the stock market is generated. The benefit of compounding is also available.
Is SIP the best way to invest?
It may not be the best way to invest, but it can be a good way to invest for people with regular incomes like salaried and businessmen
Investment through SIP does not put a strain on the pocket and by continuously investing small amounts, a good amount can be collected in the long run.
What is a benchmark?
Benchmarks are usually market indices like BSE Sensex and Nifty, with which the returns of mutual funds are compared.
