Should mutual fund investors bet on large cap schemes in a volatile market?

Many investment experts ask investors to take refuge in large caps or Bluechips in troubled times. As the market enters a volatile phase and grapples with many uncertainties, is it time to seek shelter in large cap schemes?

Surprisingly, most mutual fund participants are not speaking about large cap schemes now. Some say theoretically there is still a case for large cap schemes. However, others suggest flexi cap schemes or mid and small cap schemes. Provided, the risk profile of investors permits investing in them.

Fund managers say investors should not give too much importance to the debate and ask them to stick to their financial goals and invest as per the risk appetite.

"The market is at a juncture where equity valuations are at about 1.2-1.5 standard deviation above the long-term average. In general, though not necessarily, one may experience relatively higher stability in the blue-chip segment," said Himadri Chatterjee, Senior Managing Partner and Head of Advisory, IIFL Wealth.

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The Economic Times