Large Cap Stocks Compare

Additional Useful Information

• An investor can buy “Shares” of these stocks. These shares can be purchased at a price which is called the “Share Price”. The price of these shares keeps changing daily.

• The investor can sell these shares anytime at the share price prevailing on the day of the sale.

• Total Purchase Amount	=	Number of Units X NAV as on the day of purchase
  Total Sale Amount	=	Number of Units X NAV as on the day of sale
  Total Gain	=	Total Sale Amount – Total Purchase Amount

• Large Cap Stocks are considered a good investment option over the long term (more than 5 years).

Returns *

• Large Cap Stocks do not guarantee any returns. They are subject to market risks.

• Investment in large cap stocks can generate returns for the investors in two forms -
• The first source - When investors sell their securities, the difference between the Sale Amount and Purchase Amount is typically called “Capital Gain” or “Capital Loss” (if sale amount is lesser than the purchase amount).
• The second source - Dividend payments.

• Large Cap Stocks have the potential to generate above average returns over a long holding period.

• Returns depend on and vary between individual stocks.

Risk Level

• Large Cap Stocks are categorized as high-risk investments since they invest in the equity stock market.

• However, they are the least risky of all the different stocks since they invest in top companies with a proven track record.

Liquidity

• When an investor sells shares of these stocks, the sale amount will be paid to the investor in 2 working days.

Interesting Facts

• Large Cap Stocks are the top 100 companies in the market based on their Market Capitalization.

• The stock price of large cap stocks does not fluctuate as much as small or mid cap stocks. They are relatively more stable given no firm specific adverse event occurs.

Tax Implications

• Earnings received from Large Cap Stocks are taxable.

• When investors sell their Large Cap Stock Shares, the difference between the Sale Amount and Purchase Amount is typically called “Capital Gain” or “Capital Loss” (if sale amount is lesser than the purchase amount).

• The tax that the investor must pay on Capital Gain is –
• Situation 1 – If the Large Cap Stocks are sold within a period of 2 years from investment, the Capital Gains earned (called Short Term Capital Gains) are taxed at 20% of the gain.
• Situation 2 - If the Large Cap Stocks are sold after a period of 2 years from investment, the Capital Gains earned (called Long Term Capital Gains) are taxed at 12.5% of the gain.

• There is no tax in case of “Capital Loss”.

• For any dividend received by investors from Large Cap Stocks, these amounts are added to their total taxable income and tax is required to be paid as per the tax slab.

Where To Invest

• Best Large Cap Funds - Top Performing Large Cap Stocks to Invest in 2022 (groww.in)

• Best Large Cap Equity Stocks Ranked By ET Money