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

When a mutual fund is categorised in terms of market capital, it indicates the size of the companies that mutual fund invests in. Large cap mutual funds invest companies with market capital 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.