Tilt portfolio towards largecap funds to tap reasonable valuations

Consider going for a passive fund

Mid and smallcap funds have been investors’ favourites in recent times. Since April 2022, they have pumped in Rs 33,486 crore into midcap funds, and Rs 48,650 crore into smallcap funds, according to data from the Association of Mutual Funds in India (Amfi). Over the same period, largecap equity funds have received barely Rs 3,398 crore.

However, investors’ perception towards large-cap funds may be changing. They received net inflows of Rs 723 crore in October 2023 after five consecutive months of net outflows.
 

Steady compounders
 

Funds investing a minimum of 80 per cent of their portfolios in largecap stocks are classified