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Definition: There are a plethora of mutual funds available in the market. Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds.
Description: The criteria for large cap companies may vary. However, these are generally the ones with huge market capitalization. Large cap funds are known to offer stable and sustainable returns over a period of time, but might be outperformed by small and mid cap funds, which have higher risk exposure.
Also See: Large and Midcap Funds, Mid and Small Cap Funds, Multicap Funds, Sector-Specific Funds
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