Things to Consider as an Investor_
                     Things to Consider as an 
Investor
INVEST IN MUTUAL FUNDS WITH WEALTHBUCKET
 Large-cap equity funds are subject to 
market risk, although in a fair 
process. Unlike small-cap/mid-cap 
funds, the NAV does not vary 
aggressively on account of the ups 
Risk and downs of the benchmark. These funds give stability to your 
investment portfolio, and you may 
think of following the focus of your 
investment portfolio around them. 
But, under-performance when a 
market rally becomes the cost of out-
performance when a fall
 Do not expect the large-cap equity 
funds to perform unevenly, as these 
have various years of history showing 
strong performance during both 
Return market lows and highs. Returns from these funds will be less volatile, 
which should be the draw when 
investing in them. Do not feel let 
down if these funds don’t post great 
returns even when the market is on 
the peak.
 Large-cap equity funds impose a fee to 
maintain your investment called expense 
ratio. It seems like a portion of the 
average asset under management (AUM) 
and reflects on the working performance 
of the fund. SEBI has mandated the 
Cost higher limit of expense ratio to be 2.50%. Considering the comparatively 
lower returns made by these funds as 
distinguished to small-cap/mid-cap 
equity funds. A fund with a lower 
expense ratio and long-term holding 
period will assist in recovering the 
money left out by way of the 
underperformance
 Large-cap equity funds are fit for 
individuals who have a long-term 
investment horizon. Usually, the fund 
Investm experiences a lot of underperformance during the period 
ent of the market fall, which averages out in the long-run of more than seven 
years to give returns in the range of 
Horizon 10%-12%. Those who choose these 
funds require to be prepared to stick 
around at least for the said period to 
allow the fund to realize its complete 
potential
 Large-cap equity funds are perfect for 
an investor who is looking for a 
reasonable level of risk. These funds 
give solid returns and check on the 
erosion of fund value during the slump. 
Financia You may use these funds to acquire wealth towards retirement planning. 
l Goals Budding investors who are seeing for exposure in the equity markets but are 
careful of the risks linked may make 
their portfolio around these funds. 
Having ease of investing and beneficial 
tax treatment, investors may look at 
these funds as perfect investments.
 When you redeem units of large-cap 
equity funds, you get capital gains that 
are taxable in your hands. The rate of 
taxation depends on how long you 
stayed invested in equity funds such a 
Tax on period i.e holding period. Capital gains made on the holding period of up to 1 
year are called short-term capital gains 
Gains (STCG). STCG is taxed at a rate of 15%. 
Conversely, capital gains made on 
holding more than 1 year are called long-
term capital gains (LTCG). As per the new 
changes in budget 2018, the LTCG over 
Rs 1 lakh will be taxed at 10% without 
the advantage of indexation.