Large-cap fund allocations figure in almost all investor portfolios as there is a comfort of known companies, management style, good research coverage and information dissemination. Also, as they are seemingly less prone to wild swings in their stock prices, they are perceived to be less risky. As a result, large-caps allocations are considered relatively ‘conservative’ equity investment than either small-caps or mid-caps. However, choosing the correct approach in fund investing —active fund or passive fund—is an important factor in deciding on the investment in large-cap funds. Therefore, a few key points will have to be taken into consideration.
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