Large-cap funds are equity-oriented schemes offered by mutual fund houses. These funds predominantly invest a substantial portion of their assets in big businesses. Large-cap companies are the ones that rank from 1st to 100th in terms of full market capitalisation. These funds allocate a minimum of 80 per cent of their total assets towards equity and equity-related instruments. Large-cap funds have lower risk as compared to mid-cap and small-cap funds as the latter two are very volatile in nature. These funds invest in companies that are usually leaders in their fields of businesses.

Below are some of the top large cap funds.

What you should know before investing:

• An investor should have an investment horizon of at least 5 years in order to receive optimal returns as the equity market is quite volatile in the short term. Therefore, an investor having a long investment horizon should consider investing in this fund.
• Large-cap fund comes under the low-risk category as this fund invests a majority of its assets in large-cap companies. This fund is suitable for conservative equity investors since it is less risky and volatile as compared to mid-cap and small-cap funds as the prices of large-cap stocks are less volatile.
• These funds offer diversification to the investors by investing in blue-chip companies across various sectors.