Small/Mid/Large Cap Funds

POSTED BY Vidyasagar ON January 11, 2011 7:09 am ONE COMMENT

Hello all,

I hear a lot of funds with Small CAP, Mid Cap & Large Cap in their names. What is the difference between them? The basic difference i understood was that it depends on size of the companies, the stocks of which the fund is mainly holding. But which of them is better and why? How to choose where to invest? Hope my question made some sense.. Please comment. Thanks in advance.


One reply on this article “Small/Mid/Large Cap Funds”

  1. Large cap shows consistent growth, liquidity and good management. Mid cap stocks are very volatile and can give deep ups and downs. Small cap are the most volatile and sometimes run by selected stock-brokers or promoters.

    To decide where to invest, you need to understand some basics of technical analysis and accounts. The other way is mutual fund route and give all this tension to fund manager.

    Hope it will help you.

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