In large-cap fund is a fund where minimum 80% of the corpus is invested in well-established companies with large market capitalization. These funds are safer and have low volatility. Stocks, where these funds invest in are called large cap stocks. Examples of large cap stocks are HDFC, HDFC Bank, TCS, reliance Industries, etc. Well established large corporations that may be part of the large cap index (BSE-30, NIFTY-50, BSE TOP 100 etc) comprise large cap universe. Large cap stocks also have track record of consistent growth and a dividend payout.
Large cap funds usually provide stable returns and known to provide stability to a portfolio. As per a recent SEBI circular. large cap funds need to invest a minimum of 80% of the corpus in large cap stocks. And large cap stocks are top 100 stocks as per market capitalization.