Large-cap funds: Then and now

Large-cap equity funds, which represent one of the biggest mutual fund categories, have already had a difficult time outperforming their benchmarks in the last one year. SEBI's rejig may make this outperformance even more of a challenge. Under SEBI's new norms, large-cap funds have the tightest mandate of all the equity categories. They have to choose their stocks from the list of top 100 published by AMFI and also have to ensure that 80 per cent of their portfolio is invested only in these stocks. Before the rejig, the large-cap category featured a fair variety of funds. Some funds managed compact portfolios drawn mainly from the Nifty 50, but many invested in the top 100 or even 200 stocks by market