As the Nifty flatlines through a gruelling two-year stretch of near-zero returns, the traditional flight to large-cap blue chips for safety is proving to be an outdated reflex. Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, says the idea that large-cap stocks are the "safe" refuge and mid and smallcap stocks are the risky bet needs to be thrown out, as India's changing economic composition has made old labels around safety and quality obsolete.
“The world doesn’t end at largecaps. We have to challenge having pure largecap portfolios. There's also this whole narrative that large-caps are cheap, so let us just do large-caps because mid and smallcaps are expensive. We have to throw out these old narratives," Gupta, whose AMC recently crossed the Rs 1 lakh crore equity AUM milestone, told ET Markets in an interview.
