InvestmentFinancial Glossary
Large Cap
Definition
Companies ranked 1st to 100th by market capitalization on Indian stock exchanges. As per SEBI's classification, large-cap companies are the biggest, most established businesses in the country. SEBI mandates that large-cap mutual funds must invest at least 80% of their corpus in large-cap stocks.
Why It Matters
Large-cap funds are the least volatile equity fund category, making them suitable as core holdings. However, SEBI data consistently shows that most active large-cap fund managers fail to beat the Nifty 50 index over 5+ years. This is why Nifty 50 or Nifty 100 index funds are often a better choice than actively managed large-cap funds.