Hi @Malolan_R, I am quite open to criticism so feel free to add.
Can you please elaborate on your understanding of my approach?
“good” here is relative so I will not comment on it. But, I do not think I have ever said that large caps do not give returns. I try to avoid stocks that are being chased/covered by every analyst as the chances of valuation re-rating are often low. This is higher for large caps as compared to small/mid caps.
Secondly, large caps are all about providing stability to the portfolio by protecting the downside.
My thought has always been – “If I have to protect the downside, I would rather hold it through a fund that doesn’t have large drawdowns while beating the large-cap index”
Once in a while, a large cap may offer good risk-to-reward, at which time, I do evaluate the opportunity.
Ex: Invested in TATA motors / L&T
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