Interview with Anish Tawakley of ICICI Prudential Mutual Fund

Recently, we sat down with Anish Tawakley, Deputy CIO-Equity at ICICI Prudential Mutual Fund. He talks about the rally in mid and small caps, whether large caps are the place to be and what he thinks of the new-age companies. Lastly, he shares two useful lessons for investors. So, let's dig in! What can spoil the party for mid-and small-cap stocks? Do their current valuations make sense? We've seen in the past that it's not unusual for investors to get drawn into stocks based on narratives or on one or two quarters of strong performance, particularly when the economic outlook is positive. I don't know what can spoil the party, whether the liquidity dries up or the euphoria fizzles out. Some of the companies in the mid-and small-cap segments don't have strong moats. So I think there is that risk; the risk-return trade-off in small and mid caps is not attractive. In our view,