Is moving your money from debt to large-cap funds a wise move?

No. You shouldn’t.

Both debt and large-cap funds are designed to meet different investing needs.

What are debt funds ideal for?

To bring stability to your portfolio and preserve capital while generating modest returns.

What are they suitable for?

To meet any short-term financial requirements.

Are large-cap funds better than debt funds?

Though these funds are less risky than mid- and small-cap funds, they are essentially equity funds, which are inherently more volatile than debt funds.

So, which type of fund should you choose?

Depending on your investment horizon, you should invest across different types of funds.

If you require money within a year…

Invest in liquid funds. And if you need money after a year but before five years, consider investing in short-duration funds.

If you need money after five years…

Equity funds are an ideal investment option.

Have you never invested in equity?

To learn which type of fund suits you best, head to the link below.