Indices have shown a downtick over a year; as a result, large-cap mutual funds are feeling the heat. Returns for two out of three large-cap equity schemes in the past year are negative. Large cap is used to refer to companies with a large market capitalisation value. Market capitalisation is calculated by multiplying the number of a company's shares by its stock price per share.
Large-cap schemes invest in the country's top 50-100 companies. Their performance is benchmarked against Sensex and Nifty, which are down 4.7 and 3.4 per cent, respectively, in the past one year.
Fund managers are finding it difficult to generate healthy returns due to weakness in several blue-chip stocks. But some large-cap schemes have outperformed the indices.
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