By severely under-allocating to large-caps, believes Vikas Gupta, CEO and chief investment strategist at OmniScience Capital, investors have missed the opportunity to gain from the significantly mispriced large-cap financial and other stocks. Investors, he said, continued allocating to Gold ETFs at significantly elevated gold prices which might turn out to be a mistake in the long-term.
“However, it was heartening to see the large equity allocation going to flexi-caps, which gives the fund managers the capital to allocate to the mispriced stocks, including in large-caps or other segments. Multi-asset funds continue attracting more capital than flexi-caps, showing that investor behaviour turns more cautious exactly when the opportunity is the highest in equities, demonstrating recency bias, reacting to past returns rather than future expected returns of asset classes” Gupta said.