Fund managers advise large cap, balance funds for 2017

India's equity fund managers are advising investors to stick to large cap funds and limit or avoid exposure to mid and small cap stocks in 2017 as the year is expected to be volatile.

According to fund managers, large cap funds not only offer higher safety on the relative basis, particularly during high volatility. Such funds restrict their investments to blue-chip companies.

Investors with a low-risk appetite can look at balanced funds with dynamic asset allocation, say money managers.

The average one-year return for large-cap equity schemes has been around 20 per cent. The recent rally in stock prices has improved