These mutual funds can invest in stocks of all market capitalizations because they are diversified. They are, in other words, unconcerned with market capitalization. These funds engage in portfolio gyrations in line with the state of the market. These funds buy companies with a variety of market capitalizations. In other words, their stock portfolio is made up of large, midsize, and small-cap stocks. They are appropriate for less aggressive investors because they are less hazardous than pure mid-cap or small cap funds.