Large-caps will offer attractive risk-reward this year

With the valuation gap between large-cap and mid- and small-caps being at a two- decade high, the former have become meaningfully cheaper. George Heber Joseph, Chief Investment Officer and Chief Executive Officer -Equity at ASK Investment Managers tells Ananya Grover that such divergences have created attractive entry points for large- cap investing. Excerpts:

- ANANYA GROVER

You have applied for a mutual fund licence. Why are many PMS firms also launching mutual funds?

It is a natural progression for us. For more than three decades, the ASK Group has catered to sophisticated investor segments-ultrahigh-net-worth individuals, high-net-worth individuals, family offices and global investors-through conviction-led portfolio management services. Launching mutual funds allows us to extend that discipline to retail investors, widening participation without diluting our investment philosophy.

PMS and mutual funds will continue to coexist because they are designed for distinct outcomes.Across both, our commitment is the samedisciplined investing aimed at delivering consistent, sustainable, long-term, riskadjusted returns across market cycles.

What kind of cyclicals are moving the market?

Every decade has a defining market theme. The 1990s were driven by technology, media and telecom; the 2000s by infrastructure; 2010-20 by consumption; and from 2020 onwards, we are seeing the next infrastructure and capex-led cycle emerge. Navigating these shifts requires disciplined awareness of market cycles.