POSTED BY April 10, 2012 3:42 pm COMMENTS (9)ON
I am new to Mutual Funds and trying to build a portfolio for myself.
I understand that “Equity: Large Cap” is comparatively less riskier when compared to Mid-Cap/Small-Cap funds.
Q1. So, if one is building a portflio with moderate risk appetite and looking for 70:30 ratio of risk vs non-risk, then whether a large cap fund should come under the “risk” portion of the portfolio or in the non-riskier section of it.
I am not sure, but, I feel the answer is that, since it’s an equity fund, it should come under 70% part of the portfolio.
Q2. Considering it as a part of 70% of your portfolio, how much percentage of it should a large cap holding is advisable?
Q3. Is it advisable to NOT to have a large cap in folio considering I am okay taking 70% of complete risk and rest 30% in PPF/FD etc
Q4. Also, I have read that The ‘Equity: Large Cap’ category accounts for around 10 per cent of the assets of all equity funds and ranks fifth when compared with the other equity categories (Large & Mid Cap, Multi Cap, Mid & Small Cap, Tax Planning). May I know that why investors stay away from large cap finds as compared to others?