New Delhi, April 4 -- With market being extremely volatile in the past few weeks, retail investors' confidence as well as risk appetite has hit low. Benchmark index Nifty50 closed 1.49 percent lower on Friday. The index now hovers around 12.8 percent lower than its peak of 26,277 which it hit on September 27 last year.

Retail investors, meanwhile, can explore the prospect of investing in large cap mutual funds. Large cap funds are supposed to invest a minimum of 80 percent of their assets in large cap stocks, while the remaining 20 percent in other categories such as mid cap stocks, debt instruments and so on.

Since large cap funds are highly skewed towards blue-chip companies, they are relatively less volatile than small and mid cap mu...