Large and mid-cap mutual funds are open-ended equity schemes that invest a minimum of 35 per cent of total assets in large-cap companies and a minimum of 35 per cent of the total assets in mid-cap stocks, according to the SEBI guidelines.

While a 35 per cent investment in mid-cap stocks gives a risky outlook to these funds, they are certainly safer than pure mid-cap schemes that take 65 per cent of your total assets and put them in mid-cap stocks. Such stocks also gain stability through their 35 per cent large-cap investments. However, the question remains for large and mid-cap mutual fund investors, where to allocate the remaining 30 per cent of their corpus?

What Happens To That Portion?

The remaining corpus in the hands of the fund manager goes where that entity’s experience and anti

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