Why Should One Consider Investing In A Large Cap Fund?

An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.

An all-weather investment portfolio is nothing but a balanced portfolio whose value sufficiently grows in a bull phase of the markets and whose value falls relatively lower or little in a bear phase. Following this time-tested wisdom helps an investor prevent massive erosion of their portfolio’s value. But in the quest for supernormal returns manya-times investors tend to create a portfolio of stocks which focuses more on appreciation and not protecting the depreciation. To prevent this mistake, it’s important to have exposure to bluechip funds as they provide distinct advantages in maintaining the core strength of an investment portfolio.

Let us understand what these distinct advantages are. Knowing these advantages will help us understand the key role these bluechip/large cap companies play in creating an all-weather or balanced investment portfolio.