DIFFERENCES BETWEEN LARGE-CAP, MID-CAP, SMALL-CAP FUNDS IN TERMS OF RISK MUTUL FUND SHAI HAI BUT HOW MUCH?

·         Risk in Large-Cap Funds

Large-cap funds invest mainly in blue-chip companies. Such funds inherently have certain advantages: The companies they invest in are large and stable businesses with the capability to weather market volatility. There is a high demand for these stocks, which makes them highly liquid. Their growth potential may be low, but so is the risk. And these funds generally bring modest but consistent returns over the long term.

·         Risk in Mid-Cap Funds

These mutual funds invest mainly in mid-cap stocks. This brings a slightly higher potential for growth, and thus the possibility of relatively higher mutual fund returns. However, the possibility of risk is higher as mid-cap companies are less able to cope with market volatility than are large-caps. The goal of the fund manager is to allocate funds to mid-cap companies that could be successful in the future.

·         Risk in Small-Cap Funds

The investment focus of these mutual funds is on small-cap companies. The risk exposure is higher with these funds, as small-cap companies are not well-established businesses. They may struggle to stay afloat during a recession, for example. But when a small-cap does well, the possibility of growth is higher than for mid-caps and large-caps. Small-cap funds try to tap into this possibility. Despite the higher risk, there is a possibility of relatively higher returns.

 

So such kar Semaj kar invest kar if you are confused then simply chose  

balance fund ( after checking their portfolio )

 

If you ask me I will prefer

Out of 100 %   

50 % large-cap

30 % mid-cap

20 % small-cap