Large-cap equity funds are open ended equity schemes predominantly investing in large cap stocks . Large-cap companies are well-established players with a good track record and vintage, and they typically have stable corporate governance practices. As per guidelines of Securities and Exchange Board of India (SEBI), Large-cap companies are defined as 1st to 100th company in terms of market capitalization. A Large-cap fund is required to invest a minimum of 80% of its corpus in equity & equity related instruments of large cap companies.
The minimum investment varies from scheme to scheme. It could range between Rs. 100 to Rs. 5,000 .
These funds are ideal for investors with medium to high risk appetite, who want equity exposure to high-quality stocks and have a long-term investment perspective. An investment horizon of above 5 years is recommended. It is recommended to use systematic investment plan (SIP) for recurring monthly investments or systematic transfer plan (STP) for investing lumpsum in these funds.
Large Cap funds receive the same tax treatment as other equity funds.