Large caps are India's 100 largest listed companies by full market value, as ranked on AMFI's half-yearly list.
AMFI ranks every listed company by its full market value, averaged over the previous six months, and publishes the list every January and July. The top 100 are large caps, the 101st to 250th are mid caps, and the rest are small caps.
Every fund house uses this one list, so the labels mean the same thing across the industry. After each new list, funds have a month to bring their portfolios in line.
Large caps include the country's biggest banks, IT services firms and oil, telecom and consumer companies. Their shares trade in large volumes, so a fund can buy or sell them easily, and their prices usually swing less than those of smaller companies.
Because large caps make up most of the market's value, many large-cap funds move closely with an index of the top 100 companies, which shows as a high R-squared against that index.
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