Under SEBI categorisation, a Large Cap fund invests predominantly in s…

Question

Under SEBI categorisation, a Large Cap fund invests predominantly in stocks ranked

Accepted Answer

B. {'text': '1st to 100th by full market capitalisation', 'label': 'B'}

1. SEBI defines large cap companies as the 1st to 100th ranked by full market capitalisation.
2. Mid caps are the 101st to 250th ranked companies.
3. Small caps are the 251st and beyond by market capitalisation.
4. A Large Cap Fund must invest a minimum of 80 percent in large cap stocks.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", Box 2.1_

Answer

{'text': '1st to 250th by full market capitalisation', 'label': 'A'}

Answer

{'text': '101st to 250th by full market capitalisation', 'label': 'C'}

Answer

{'text': '251st and beyond by full market capitalisation', 'label': 'D'}