Many different methods exist for investing in mutual funds. Depending on the fundamental assets that mutual funds hold, such as equities, debt, or gold, we can classify them into a variety of subgroups. Equities mutual funds, debt mutual funds, and hybrid funds are a few examples of these types.
Large cap mutual funds are described by the Securities and Exchange Board of India as "an open-ended equity mutual fund holding at least 80% of its total assets in equities and equity related securities of large cap businesses."The top 100 corporations by market capitalization are referred to as large cap or blue chip companies.A market capitalization of greater exceeding Rs 20,000 crore is typical for large cap corporations.
Equity mutual funds are investments that are primarily made in equities, or company shares. These programmes aim to promote capital appreciation and facilitate wealth building by investing money pooled from several participants in various companies across industries. In the long run, equity mutual funds could produce significant returns.
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