Which investment category has produced the most returns over the past 10 years: Large-cap, Mid-cap, or Small-cap?

Ans: Your question is incomplete. There are 48 categories of mutual funds and each one has its own 'top funds' over various time horizons.

Ans: For a 5-year investment horizon in the large and midcap category, you'd want funds that have demonstrated consistent performance, have a solid track record, and are managed by experienced fund managers. While I can't recommend specific funds, I can provide you with guidelines on what to look for:

Consistent Performance: Look for funds that have consistently outperformed their benchmark and peers over various market cycles.
Fund Manager Experience: A fund managed by an experienced and skilled fund manager often performs better. Research the fund manager's track record and investment strategy.
Expense Ratio: Lower expense ratios mean higher returns for investors. Choose funds with a reasonable expense ratio compared to their peers.
Asset Size: A larger asset size often indicates investor trust and confidence in the fund. However, extremely large funds might find it challenging to maintain high returns due to liquidity constraints.
Risk Metrics: Check the fund's volatility and risk-adjusted returns (like Sharpe and Sortino ratios). Lower volatility and higher risk-adjusted returns indicate better risk management by the fund.
Portfolio Composition: Ensure the fund's portfolio aligns with your risk appetite and investment objective. A well-diversified portfolio with a mix of large and midcap stocks can offer stability and growth potential.
Historical Returns: While past performance is not indicative of future results, it can provide insights into the fund's consistency and ability to generate returns.
Fund House Reputation: Opt for funds managed by reputed fund houses known for their ethical practices, transparency, and investor-centric approach.
Lastly, it's crucial to review your investments periodically and make adjustments based on changing market conditions, your financial goals, and risk tolerance. Consider consulting with a financial advisor or doing thorough research before making investment decisions.

Ans: Large-cap mutual funds are like sturdy ships navigating the vast ocean of the stock market, anchoring your investments in well-established companies. These funds focus on the giants of the corporate world, companies with substantial market capitalization and a proven track record of performance. But why choose large-cap funds? Well, they offer stability and reliability, akin to the steadfastness of a lighthouse guiding ships through turbulent waters. With their conservative approach and steady growth potential, they serve as a cornerstone in many investment portfolios.

As a Certified Financial Planner, I appreciate the role these funds play in providing a solid foundation for your financial goals. However, it's essential to carefully evaluate each fund's performance, management team, and investment strategy to ensure it aligns with your objectives and risk tolerance.

Remember, while large-cap funds offer stability, diversification across different asset classes is key to building a resilient portfolio. By striking the right balance, you can navigate the seas of the market with confidence and sail towards your financial aspirations.

Ans: Please get your risk appetite assessed before investing in these category of funds.

Also keep a time horizon of 5 yr+

The best funds in these categories on the basis of 5 year return criteria are:

1. Motilal Oswal Midcap fund
2. Nippon India Growth fund
3. HDFC Mid-Cap opportunities fund
4. Quant small cap fund
5. Nippon India Small Cap Fund

* Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

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