Analysis of Wealth Management Strategies: Small and Large Cap Funds

This report provides an overview of wealth management, focusing on the comparison between small-cap and large-cap funds. It begins by defining wealth management and its role in financial advising. The report then delves into the characteristics of small-cap and large-cap funds, highlighting their differences in terms of risk profiles, growth potential, liquidity, and volatility. Small-cap funds are associated with higher growth potential but also greater volatility, while large-cap funds are generally more stable. The report also discusses the similarities between these fund types, such as their inclusion in the equity market, and provides key differences in their performance and suitability for different investment goals. The conclusion emphasizes the importance of wealth management in investment decisions and offers insights for investors. Finally, it includes references to relevant research on the topic, such as Sahoo and Kumar's work on the relationship between large-cap, mid-cap, and small-cap segments in the Indian capital market.

PERSONAL WEALTH MANAGEMENT
INTRODUCTION
Personal wealth managements investment advisory
practice that generally incorporates the portfolio
management, financial planning and other aggregated
financial services for the people, as opposed to the trust,
corporations, funds and other institutional investors. So
the wealth managers generally provide the holistic
financial advice generally to help their customers or
client grow as well as protect their wealth. So the scope
of the wealth manager is to help clients or customers
with their account details, and also give some advice on
the financial investment. The poster is elaborate about
the small company equity fund and ordinary equity fund.
Along with this key difference and similarities between
the small company equity and ordinary equity fund.
Small cap fund and large caps fund
Small cap fund
The Small-cap funds are generally the funds that are invested in the stocks of
the small capitalization organization. As such organizations are particularly
small-sized, and they also have a large potential to grow as well as to large
capital businesses and also deliver profitable returns to company investors.
The small cap funds are normally invested in various companies that are
below top 250 stocks in exchange according to their market capitalization.
Even the small cap mutual funds also have turned out to more popular
investment option because of their high returns.
Large cap fund
The meanings of big-cap or large cap are generally by names, that is indicated
how valuable they are in terms of market capitalization. The large cap stocks
are referred to shares of larger companies. Large cap fund are generally the
biggest organizations on the Australian Securities Exchange in terms of the
market cap. Here, the S&P or ASX 50 (AFL) index that is represents top 50
companies. The market cap of such securities mostly ranges between 10s of
billions to $100 billion. The Large Cap funds generally are funds that are
invested large proportion of their AUM (assets under management) in the
equity shares of organizations with the big market capitalization.
Difference between the Small cap fund and Large Cap funds
CONCLUSION
It includes that the wealth investment help
people related to the investment decision.
They generally give advice people related to
the equity fund investment. The poster
includes highlights the two concept that is
small cap fund and large cap fund. Along
with this some key difference and
similarities between the large cap fund and
small cap fund.
Similarities between Small cap fund and Large Cap
funds
Small cap fund as well as large cap funds are the part of equity
market. Both includes many companies in which the investors invest.
As both provide good return on the investment of the investors. When
the investors want to invent in the market they can select any of them
according to their need and requirement.
Large cap funds Small cap funds
Risk profile The large cap funds generally
have lesser risks compare to
other.
The small cap funds or equity are
more risky as compare to large
cap funds.
Growth potential It has low rate of growth
potential.
It has high or great growth
potential.
Liquidity and volatility The large cap funds are
particularly less volatile , but it is
stable as well as provide good
returns and good liquidity.
Small caps funds are is more
volatile, but it is less liquidity.
REFERENCES
Sahoo, S. and Kumar, S., 2022. Does Lead-
Lag Relationship Exist Among Large Cap,
Mid Cap and Small Cap Segments of
Indian Capital Market?. SOUTHEAST
ASIAN JOURNAL OF ECONOMICS,
10(2). pp.95-119.