Diversified Equity Funds :


 They invest stocks belonging to various industries like Banking, Pharma, Infrastructure, Hotels, Hospitals, Consumer goods, Telecom etc.
  This diversifies the risk of a single sector, by investing in one or more of these sectors depending on the investment mandate of the fund.
  They invest predominantly in established, grown up companies – often referred to as Large Cap Funds. But they may also invest in mid sized, fast growing, upcoming companies if it meets the investment standards. They pick their stocks from a pool of top 200 listed companies by size.