For mix of stability and growth, invest in large and midcap funds

Investors overweight on small- and mid-cap funds may consider booking profits there and allocating to these funds

Large and midcap funds are currently in focus due to the introduction of new fund offerings, including an index fund and an equity-linked savings scheme tracking the Nifty LargeMidcap 250 by Zerodha Fund House. 

Amid the post-pandemic market rally, investors have focused on small and midcap stocks and equity funds, largely overlooking the largecap category. The recent bout of volatility has served as a reminder of the risks associated with excessive exposure to small and midcap categories.
 

By booking profits in these smaller categories and reinvesting the funds into large and midcap funds, investors can achieve a better balance between returns