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If you are looking for steady growth of capital and are not willing to take a lot of risks, large-cap equity funds are best for you.Equity mutual funds invest the collected amount in companies listed in the stock market. The size of these companies depends on their market capitalization. It is defined by the number of shares issued by them multiplied by the value of each share.

When a mutual fund is categorized in terms of market capitalization, it indicates the size of the companies that the mutual fund invests in. Large-cap mutual funds invest in companies with a market capitalization of at least Rs. 20,000 Cr.

Companies with a large market capital have a history of consistent growth which makes them a wise choice to get good returns with lesser risk compared to mid-cap and small-cap companies.