At a time the indices are on the recovery path – and small- and mid-cap stocks are moving higher every day – talking of volatility and the possibility of corrections will not be popular. The fact, however, is that volatility does not give notice before coming. And even in the best of bull runs, there will be corrective phases – as we have seen in the recent past. So, as an investor, it is best to be prepared. How does one prepare for volatility? One way is to stick with large-cap companies, especially those with some tailwinds for the business. These are the companies that will do better than others in fundamental ways – not just in terms of the stock price.
