The investors who want to achieve their long term financial goals can simply choose this scheme. This is less risky and also you will not find any volatility. This is the best one for the new investors who want to get a huge amount without any problem. The best large cap mutual funds are available in the many banks and so you have to consider it. This will invest in companies with huge market capitalization value. The strong corporate practices are followed by this mutual fund. Therefore the returns that are provided by the mutual fund are so stable.
Why prefer this large cap mutual fund?
This large cap mutual fund is special as this does not fluctuate the capital returns. There are many funds that are available for investors. All these kinds of funds will invest in large companies with the same strategy. The dividends are also provided to the investors regularly. Even during the downtimes, this kind of investment is suitable to maintain the financial crisis securely. But even when you keep on investing during the time of the hard situation then you can easily neglect all loses. This is the fund that is suitable for investors who want a period of five or seven years.
What is special in this mutual fund?
The investing in the mutual fund can be done either in the systematic investment plan or through the lump sum mode. The many fund managers and the experienced people will recommend this sip mode of the investment as this is less risky and also you can get the amount back in big. This is much special for the investors as they can able to get constant growth in the interest income without any taxation. The dividends provided by the companies are also very much constant and will be given at the correct time.
This mutual fund is very much less in the risk factor compared to the medium and the small one. This is a good one or new investors to gain more profit. Also, this is the only fund that never goes down even when the market value reduces. This time horizon that is present in this kind of the large cap fund is over seven to ten years. The generating of the profit is the main aim of this kind of fund and so it is very much essential to pick the best large cap mutual funds. It is more reliable on profit. The profit is completely stable and also if any loss happens that also not much likes the other schemes.
There are two types of capital gains are available in this fund. One is the short term and the other one is the long term. The short term period is having a taxation rate of about fifteen percent. But in case of the long term taxation only when the capital gain is between the on lakh then you no need to pay any tax. But if the gain is exceeding the particular amount then the tax of about ten percent needed to be paid.