Reap Benefit From Exposure In Large And Midcap Stocks!

Presenting ABSL Equity Advantage Fund (erstwhile ABSL Advantage Fund)

- Vijay Thapliyal

SEBI’s recent exercise on categorization of mutual fund schemes is a right step taken towards standardising definitions, classifications and nomenclatures. Small investors will now have much greater clarity when they are investing in equity, debt or hybrid funds. Fund nomenclatures will actually reflect what the fund composition is. The new norms have brought in a new segment – Large and Midcap funds. These funds need to invest a minimum of 35% of total assets in Large caps and in Mid-caps each.

What are Large & Midcap Funds? 

As mentioned earlier, they invest a minimum % as a mandate in Large and Midcaps companies, while being diversified in terms of sectoral exposures. Given the extent on bias towards, Large cap or Midcap for the balance 30% of the portfolio, they either turn out to be ‘more aggressive’ Diversified funds (if balance 30% goes to large cap) or Conservative Midcaps (if balance 30% goes to Mid/small caps). The larger funds in this peer set are likely to be more in line with the 1st category.