These mutual funds invest primarily in selected stocks on the Indian market (NSE / BSE) from all listed stocks. These are diversified mutual funds that can invest by market capitalization of stocks. In other words, they are agnostic towards market capitalization. These funds use asset gyrations commensurate with the state of the economy. These funds invest through market capitalization in stocks. That is, there are large cap, midcap and small cap stocks in their portfolio. Compared to a mere mid-cap or a small cap portfolio, they are comparatively less risky and suitable for not - so-aggressive investors.