They are mandated to invest at least 80% of their assets in the top 100 companies as per market capitalisation.
Hence, such funds often tend to overlap their indices and appear to mimic them.
Let’s look at the five least active large-cap funds.
Overlap with large-cap index: 76.5%, Value Research rating: 2/5
Overlap with large-cap index: 68.7%, Value Research rating: 4/5
Overlap with large-cap index: 67.8%, Value Research rating: 4/5
Overlap with large-cap index: 67.6%, Value Research rating: 4/5
Overlap with large-cap index: 65.8%, Value Research rating: 3/5
The data is as of March 31, 2024. Only the direct plans of large-cap funds (as per Value Research classification) have been considered.