What category is better - large cap, large & mid cap or multi-cap?

I am a senior citizen and have been investing in various schemes of mutual funds. But in the present economic scenario, if I have to continue my funds, then which category should I continue investing in - large-cap, large- & mid-cap or multi-cap?
- Dinesh

It entirely depends on when you would need the money. If you are unlikely to need the money for consumption, then multi-cap funds are the best and low maintenance. Without worrying much, these funds give greater diversification. But at this point, if somebody is looking for investing with a long-term perspective and looking at the biggest recovery, then I feel the first category of funds to benefit from the market recovery - which I don't know when will happen but as and when happens - will be the large-cap category.

Having said that, if you are focused on these three categories, they all have a bright outlook as and when the markets turn around.

This article was originally published on May 06, 2020.