A large proportion of initial fund is invested in ________
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Large cap funds are those funds which invest a larger proportion of their corpus in companies with large market capitalization. Trustworthy, reputable and strong are three adjectives that are often used to describe a large-cap company. These are the old and well-established players with a track record.
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Answer:
A large proportion of the initial fund is invested in fixed assets
Explanation:
A large proportion of the initial fund is invested in fixed assets because:
- Fixed assets are the company-owned tangible properties that cannot be easily converted into cash.
- Fixed assets help in the valuation of the company, so that investors can rightly value it.
- It is a crucial part of the net worth of any company.
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