The major difference between large-cap, mid-cap, and small-cap funds is the market capitalization and the risk level of the different companies.

Large-cap terms refer to the bluechip companies in terms of market capitalization.

Large-cap companies mean market cap above Rs. 20000 crore. These companies have corporate governance and higher efficiency in their management team like Reliance Industries, ICICI Bank Ltd. They tend to manage recession in a better manner.

Mid cap companies have the market capitalization of more than Rs. ₹5,000 crore and less than ₹20,000 crore. These companies are in the transitional phase and tend to grow more. Investors can expect high returns through midcap investment.

Small cap companies have the market capitalization lesser than Rs. 5000 crore. These companies have high risk involved as the market cap is the least among all.
Some small cap companies are JK Lakshmi cement, Network18, Mahindra Lifespace, V2 Retail etc. Investment in small cap companies may give you higher returns but also risks your fund.