New Delhi, June 9 -- Large- and mid-cap funds allow investors to get exposure to both large-cap and mid-cap stocks through a single investment. They combine the relative stability of large-cap companies with the higher growth potential offered by mid-cap businesses.

So, let's understand what large-and mid-cap funds are, the top 5 funds in this category based on alpha, and the key benefits and risks of investing in them.

Large- and mid-cap funds are equity mutual funds that are required to invest at least 35% of their assets in large-cap stocks and at least 35% in mid-cap stocks.

Large-cap companies include the top 100 companies based on market capitalisation, while mid-cap companies include those ranked between 101st and 250th. These f...