Large-cap equity funds, also known as large-cap funds, are investment vehicles that focus on investing in companies with large market capitalizations.Large-cap funds typically invest in well-established, financially stable companies that are considered leaders in their industries. These companies often have a long track record of success, strong brand recognition, and a large market presence. As per the new SEBI Guidelines, Top 100 companies in India will fall under the category ‘large cap’.

Investing in large-cap equities is often viewed as a relatively conservative strategy compared to investing in small or mid-cap stocks. Large-cap companies tend to have more stable revenue streams and resources to weather economic downturns. As a result, large-cap equity funds are considered lower risk compared to funds that focus on smaller, riskier companies.

Investors interested in large-cap equity funds should consider their investment goals, risk tolerance, and investment horizon. Large-cap funds can be suitable for investors seeking long-term growth and stability in their portfolios.