Given the current economic uncertainty and sharp volatility in the market, retail investors should restrict their focus to large-cap stocks with established fundamentals.
Nimesh Shah, Managing Director, ICICI Prudential AMC, told BusinessLine that large-cap stocks are generally the leaders in their respective sectors with steady cash flow to weather any eventuality in business.
“These companies usually have large surpluses and pay regular dividends, which is an added attraction,” he said. However, he said it would become an expensive affair for retail investors to invest in individual large-cap stocks in different sectors; therefore they should give this job to professionally-managed mutual funds.
