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Are Mid & Small Caps in Trouble? Time to Shift to Large Caps?
[FIIs ownership in mid caps and small caps vs large caps](https://preview.redd.it/a9h7jshs3aie1.jpg?width=906&format=pjpg&auto=webp&s=3c8a1075c8d7e64329f9706d9ca75e50966c6746) Looks like in this downtrend, FIIs have been dumping large caps maybe because of bad results or they just found better opportunities elsewhere. But since most of us are holding a lot of mid and small caps, something feels off. Money has been flowing into mid and small caps while getting pulled out of large caps. If you look at past trends, mid and small caps could take a brutal hit this time, while large caps are starting to look way more reasonable in terms of valuation. As always large caps are safer because of lower volatility. With FIIs pulling out, they might reverse soon given how attractive large caps are getting. Not a buy/sell recommendation, but if FIIs change their perception, small and mid caps could get hammered hard and from the data, that could happen soon. So shifting to large caps might be the smarter move What do you guys think? Also, I don’t just blindly look at valuations and ignore the business and price action. But if someone’s looking to enter fresh positions, large caps seem like the better bet right now3
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