In ETMarkets Smart Talk, Roop Bhootra outlined a portfolio strategy for investors navigating volatile Indian equities. His suggested allocation is 50% large-cap stocks, 30% mid-caps and 20% small-caps, a mix designed to balance relative stability with growth opportunities across market segments.
The recommendation comes as the Indian market faces pressure from persistent foreign institutional investor selling, geopolitical uncertainty and mixed corporate earnings. With these factors driving sharp swings in sentiment, asset allocation has become a more important part of portfolio planning.
Bhootra's view also reflects a shift in how different parts of the market are priced. Large-cap stocks have lagged mid-cap and small-cap peers in recent months, but valuation comfort is gradually improving in the large-cap space. That can make larger companies more appealing for investors looking for a steadier base during uncertain periods.
The proposed 50-30-20 market-cap allocation points to diversification rather than chasing only the recent outperformers. In the current environment, the broader message is that a well-structured portfolio may matter more than ever as market leadership changes and external risks remain elevated.
