Hybrid, Large-Cap Funds Safe Bets Amid Uncertainty

Mumbai: Even as the Indian stock market faces sharp ups and downs, big opportunities may be lying ahead, according to a report. In its latest strategy report, Motilal Oswal Private Wealth (MOPW) remains optimistic about equities in both the short and long term.

The firm suggests that investors should continue to invest in large-cap and hybrid funds through lump sum investments, while deploying funds into mid- and small-cap stocks in a staggered manner over the next six months.

The recommendation comes as recent market corrections have brought down large-cap valuations below their 10-year average.

“The ongoing corrections have resulted in valuations of large-caps falling below the 10-yr average on a 1-year forward basis,” Motilal Oswal Wealth Limited MD & CEO Ashish Shanker noted.

He added that while mid- and small-cap indices are still trading at a premium, pockets of opportunities are emerging there as well.