Between Large cap vs diversified eq funds.

POSTED BY Dev ON May 17, 2013 12:24 pm COMMENTS (7)

Query 1:

Planning to start SIP for the below funds with amount of RS 5 K each .(total 10k) and duration will be around10 years.

 Franklin india Bluechip

Quantum Long Term Eq.

I am expecting some more bulk funds like 50k – 1L in near future. My query is can i go ahead and invest the surplus in this two funds. whether i should check  market and NAV is low and buy the units or Simply purchase whenever i will get surplus amount.

Because i am in confusion between this SIP and lumpsum investment goes in single time frame or have to wait and split the Lumpsum to SIP mode.

 

Query 2 :

  When i was searching Diversfied Eq mutual funds in moneycontrol. i am not getting the above funds in the list. Really i am not sure how this above funds differ from diversified EQ funds.   These 2 funds was mostly recommended by experts/websites.

Reliance Equity Oppor – is Diversfied fund, but when i see their portfolio, the way the sectors are invested in same like the above two large cap funds.

So please explain between Large cap vs diversified eq funds. 

 

7 replies on this article “Between Large cap vs diversified eq funds.”

  1. Anshuk Jain says:

    Don’t go for lumpsum investment. Very risky. Divide the amount in 5-6 monthly instalments

  2. Dear Dev, Ok I got it. As per Moneycontrol, the Eq. diversified is what i’m telling as multicap. I.e. fund ‘ll invest in large, mid as well as small caps.

    Thanks

    Ashal

  3. bharat shah says:

    i suggest you to refer’ valueresearchonline.com’ and ‘morningstar.in’ sights for indian mutual funds.

  4. Dev says:

    Yes i am confused when i checking moneycontrol to compare these 2 below funds , Fund class was mentioned as Large Cap and Diversified Eq. So i thought of clarify with you, I cannot copy the entire comparison table here for your reference, Just i copied for your view

    Scheme Franklin India Bluechip Reliance Equity Opportunities Fund
    Fund Class Large Cap Diversified Equity

  5. Dear Dev, I think you are confusing a bit between Large cap & Eq. diversified funds. Actually all Eq. funds are diversified funds. I assume you are asking for Large cap v/s Multicap fund.

    Well both are good. The only difference lies in the fact that there is a concentration of large cap stocks in a large cap funds whereas in a multicap fund, there can be midcap as well as small cap also.

    thanks

    Ashal

  6. Dear Dev, please invest the lump sum amount also in the same funds & in one go. Regarding the classicication of funds into different categories, there are various sites & their own yardsticks. So chose on your own.

    For the 2 funds selected by you – I’m investing my own money.

    Should I say more?

    thanks

    Ashal

    1. Dev says:

      Thanks ashal . No doubt about the funds,

      Just to clarify myself between Large cap and Diversified EQ funds. i was raised the query .

      Because when i read multiple websites about MF investments, most of the recommendations are about Diversified funds. So i was eager to know is there any big difference exist between these 2 classifications in terms of investment strategy and any other factor which was not understood by the first time investor like me.

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