Actively managed by fund managers of multi-cap funds, select stocks from large-cap companies, mid-cap companies, and small-cap companies, and each category has individual characteristics:

1. Large-Cap Stocks: These are the stock of well-established stable company. Large caps provide a lot of reliability and will work as a safety net while trading in the market as such company is less volatile.

2. Mid-Cap Stocks: These mid-cap stocks are sourced from medium companies. Mid-cap stocks are relatively more volatile than the large-cap stocks but more potential in terms of growth, so this category presents a well-balanced stability and opportunity.

3. Small-Cap Stocks: These are small-cap stocks from comparatively smaller companies with significant growth potential and risk as well. Though returns can be pretty good on small-cap stocks, they can also be relatively volatile.