What is Large Cap Mutual Fund in India?

Large Cap is a mutual fund category defined by SEBI. A scheme in this category will have at least 80% of its investments in the companies with large capitalization. To make it simple, top 100 companies by market capitalization in the Indian stock market are considered as large cap, so they get at least 80% fund allocation in the large cap scheme.

Large Cap

Companies with large capitalization are considered safe compared to the companies with medium and small capitalization. Ideally, investors who are new to the equity market should start their investment journey with this category. Also, investors with low risk appetite can consider this option, as the investment made in this category goes to the top companies of India. In large cap, returns are comparatively secure and stable.

Examples : Reliance, State Bank of India, HDFC Bank, Kotak Bank, TCS, Infosys are the few companies which fall under large cap category.