More negative on smallcap and midcap stocks: ICICI Prudential MF

Mumbai: ICICI Prudential Mutual Fund said it is "more negative" on small-cap and mid-cap stocks even after the declines. "We hold on to our view that small-caps and mid-caps are more risky and are overvalued compared to large- caps whereas large-caps are in neutral zone as per our framework," said S Naren, executive director & CIO, ICICI Prudential AMC.

Naren said large-caps are not cheap, but they are not overvalued either. He added that exuberance in equities among local investors exists.

"We are always much more positive when that exuberance ends," said Naren. "That is when we are much more positive. We don't see that till there is still enough exuberance in IPOs and other things."


ICICI Prudential continues to recommend investing in hybrid and multi-asset allocation schemes given the strong fundamentals and high valuations.

"We are believers still in our moderate return world, which is why our favourite investment opportunity at this point of time is still asset allocation," said Naren.