Should Large-Caps Be Your Current Choice?

The volatility in the markets on account of several factors has created a wave of confusion among investors as to whether small-cap and mid-cap stocks are a preferable choice. However, as this article shows, Bhavya Rathod elucidates how during such times the large-cap stocks should be focused on since they provide stability to the portfolio

- Bhavya Rathod

Amid massive volatility in the Indian and global markets, investors remain clueless as to how to surf through the rough tides which have kept coming since the pandemic. However, long-term investors in general thrive in such moments and remain resilient with quality large-cap companies. Ever since the coronavirus pandemic hit the world unexpectedly, the markets have unhappily welcomed high volatility as a gift. Factors such as the geopolitical situation between Russia and Ukraine, continuous rate hikes by the Federal Reserve, inflation’s threat looming each time there’s some upward action in the market, the Adani Group and Hindenburg crisis and the latest fall of the Silicon Valley Bank have severely impacted the market sentiments.

This makes us wonder where to invest in such turmoil markets. In such uncertain market conditions, it is wise to invest in dependable, blue-chip stocks that offer reliable returns at a reasonable cost rather than focusing solely on expected growth. Opting for large-cap stocks is a prudent approach to mitigate risks and ensure stability in the equity markets. It’s important to acknowledge that volatility is an inherent part of equity investing and that risk and reward go hand in hand. In such a scenario, depending on the dependable is the kind of mantra that must be followed. The following paragraphs indicate why the large-caps should be the flavour of the season.

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