Best large and midcap schemes to invest in 2018

Best large and midcap schemes to invest in 2018 Thanks to the recent categorisation and rationalisation drive by Sebi, there is a new equity mutual fund category available to investors: large and midcap schemes. These schemes, as the name suggests, would invest in a mix of large and mid-sized companies. Before re-categorisation of mutual fund schemes, most multicap schemes used to follow a similar allocation - some would have a tiny exposure to smallcap companies. However, the new large and mid-cap category is different because of its investment mandate. As per Sebi mandate, large and midcap schemes will have to invest in a minimum 35 per cent of the corpus in largecap companies and another 35 per cent will have to be deployed in midcap companies. These category makes sense after Sebi put down strict guidelines for the broader mutual fund categories. Sebi has defined the universe for all the categories which makes it even more difficult for these schemes to move away from their mandate. For example, a largecap scheme must invest at least 80 per cent of its corpus in largecap stocks. This makes largecap schemes very conservative. On the other, midcap schemes must invest 80 per cent of their corpus in mid-sized companies, which makes them a little extra risky. In such a scenario, aggressive investors have one more option: large and midcap schemes. Remember, the 35 per cent minimum exposure to midcap companies make them riskier than earstwhile multicap schemes that had the freedom to switch between market capitalisation based on the market conditions. Mutual fund advisors ask investors to look at the portfolio and strategy of the schemes before investing. Some of the large and midcap schemes might be inclined towards midcaps and some might hold more of largecaps in its portfolio. Investors should pick schemes according to their risk appetite. Currently, there are 22 large and midcap schemes in the market. We have listed five large and midcap schemes for you. Our recommendations include: *Mirae Asset Emerging Bluechip Fund *Sundaram Large and Midcap Fund *Invesco India Growth Opportunities Fund *Canara Robeco Emerging Equities Fund *Principal Emerging Bluechip Fund

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Date: 2018-10-23 10:16:13