As the Indian stock markets are doing well and large-caps stocks are leading a rise in the indices, investor appetite for large-caps has been steadily rising. Experts, however, favour large-caps as these companies are relatively more stable and less volatile than smaller companies. “large-caps are relatively undervalued as compared to the rest of the market. For the next year the focus will be on large-caps as they scale up earnings due to rising demand and better prices," said, Tanwir Alam, Independent Financial Advisor (IFA).
“As a recovery will not happen overnight, investors need to keep an eye out on sectors better placed when the tide turns. Funds like ICICI Pru are better suited for finding under-valued segments that can stand good in the coming 1-2 years,” Alam added.