Sunday , December 29 2024

Due to stock market volatility, 80 percent small cap stocks fell, large caps remained stable

Large Cap Performance: The stock market has seen extreme volatility in the last few weeks. Sensex and Nifty remain volatile from all-time highs. However, the biggest impact of this fluctuation was seen on small cap funds. Large cap stocks have seen less volatility as compared to small and mid cap stocks.

80 percent small cap shares fell

Due to heavy selling in small cap shares, 80 percent of the shares in this segment saw a fall in their prices. Under the burden of this selling, some shares fell to the lowest level of the year. This also affected the performance of mutual funds. Whereas in the last one year, 12 large cap funds have registered returns of more than 40 percent.

Investors should focus more on large cap stocks than small cap segment to stabilize their portfolio. Therefore, experts say that it is important to have large cap funds in the portfolio of investors.

Attractive returns in largecap funds

The performance of large cap funds has been more stable in recent times. In the last one year, 12 large cap funds have given returns of more than 40 percent and 15 funds have given returns of more than 30 percent. In this category, Nippon India Large Cap recorded the highest return of 45.12 percent, while Taurus Mutual Fund recorded the highest return of 43.98 percent.

Apart from this, other 10 funds have got a strong return of 40 percent. The stable environment in large cap stocks is due to support from funds, buying by some global funds and low volatility amid various global and domestic factors and quick recovery after limited fall in prices. Large cap stocks are more resilient to shocks and have stable risk returns.