Out of large- and mid-cap funds, which one should I choose?

Considering the current market scenario, which funds among large-cap and large & mid-cap should one choose?
- Shilpa

I don't know because this amounts to guessing which segment will do well over a long period. I keep insisting that you should be investing for five years and more when investing in equity. During those five years (and more), there will be a market cycle where sometimes large caps will do well, at times mid caps and sometimes even small caps will do well. So, with that in mind, invest in a flexi-cap fund. The reason is that the fund manager will have greater freedom to invest in any part of the market. Further, during a market cycle, there will be market segments that will do well and some poorly and with a flexi-cap, you'll be better able to ride a market cycle.

This article was originally published on December 23, 2021.