Large Cap Funds:
Large cap mutual funds invest in companies with market capitalisation of over Rs 20,000 crore. Fund managers look at the Sensex or BSE-100 Index of Nifty as a reference point.
Ex: Franklin India Bluechip Fund and ICICI Pru Focused Bluechip Equity Fund are large cap funds.
Midcap Funds:
The midcap-oriented funds in vest in companies having market capitalisation from Rs 5,000 crore to Rs 20,000 cr. BSE Midcap NSE Midcap index can be considered as the reference point.
Ex: Kotak Midcap Fund and Motilal Oswal Focused 30 Midcap Fund are mid cap funds.
Smallcap Funds:
The smallcap or microcap funds invest in companies with market capitalisation less than Rs 5,000 crore. BSE Small cap index can be considered as the reference point.
Ex: Reliance Small Cap Fund and DSP Micro Cap Fund are smallcap funds.
Multicap Funds:
Multicap funds are diversified mutual funds that can invest in stocks across market capitalisation. Assets can be invested in shares of large, medium (or) small size companies.
Ex: Motilal Oswal Multicap 35 Fund and Kotak Select Focus are examples of such funds.