The way 2024 is ending for large-caps is very different from how it began. At the start of the year, large-caps were mostly seen as stocks that had failed to deliver returns. The reason for this perception was the much better performance of mid- and small-caps. But in the last few months, large-caps have been able to cover some of the valuation differential with mid- and large-cap stocks. But if one looks at the long-term average, there is still scope for mean reversion. As an investor, even in a bull market, it is better to be prepared for volatility. So a part of any incremental exposure should go to large-cap stocks. But make a distinction between large-caps and what are mega-caps. In short, there is more to large-caps than TCS, Infy, and Reliance.
