Large-cap stocks play a crucial role in a diversified investment portfolio by providing stability, liquidity, and consistent returns. Large-cap stocks, typically defined as companies with a market capitalization of $10 billion or more, represent well-established businesses with a significant market presence. These companies often have a history of steady revenue, robust financial performance, and the ability to weather economic downturns.

The stability of large-cap stocks makes them a foundational component of a diversified portfolio. They tend to be less volatile than small-cap or mid-cap stocks, which helps balance the overall risk in an investor's holdings. This characteristic is particularly valuable during periods of market turbulence, where large-cap stocks often act as a buffer against significant portfolio declines.

Large-cap stocks also offer high liquidity, meaning they can be easily bought or sold without significantly affecting their price. This liquidity provides investors with flexibility, allowing them to adjust their portfolios as needed.

Moreover, many large-cap companies pay regular dividends, providing investors with a reliable income stream. This income can be reinvested or used to support other financial goals.

In summary, large-cap stocks contribute to a diversified portfolio by offering stability, liquidity, and consistent returns, helping investors manage risk while achieving long-term financial objectives.