Market cycles favour different segments at different times. We analyse current valuations and historical data to help you decide where to deploy capital now.
Largecaps: The Foundation
Top 100 companies by market capitalization. These are established, stable giants (like Reliance, HDFC, TCS). They offer steady growth and resilience during market downturns. Ideal for core portfolios.
Midcaps: The Growth Engines
Companies ranked 101 to 250. These are the emerging leaders of tomorrow. They offer higher growth potential than largecaps but come with increased volatility.
Smallcaps: The Multi-baggers
Companies ranked 251 and below. They hold immense growth potential and can generate exponential returns, but they are highly volatile and carry significant risk of capital erosion during bear markets.
Asset Allocation Rules
A sensible portfolio balances all three. For long-term wealth creation (7+ years), allocating roughly 50-60% to Largecaps, 25-30% to Midcaps, and 10-15% to Smallcaps is a standard, robust approach.