Domestic mutual funds spread their investments across companies of different sizes, with each market-cap segment offering a distinct risk-return profile. Large-cap stocks typically provide greater stability and tend to be less volatile, making them a core component of many portfolios. Mid-caps offer a balance between relative stability and higher growth potential, while small- and micro-cap stocks can deliver stronger long-term gains but come with significantly greater volatility and downside risk. The mix varies depending on a fund’s mandate, valuations, economic conditions and the fund manager’s assessment of future opportunities. Holding stocks across market-cap segments can help funds capture growth opportunities while reducing their dependence on any single segment and moderating overall portfolio risk. Top 10 holdings:Compiled by Dhuraivel Gunasekaran