Into the volatility in January, we’ve reduced our cash balance to 3% and increased our large-cap exposure. While we’re cautious with small caps, we focus on earnings and liquidity, while ensuring liquidity is not compromised. The weighted average market cap of our portfolio is around ₹3.1 lakh crore, so we’re avoiding micro-caps and prioritizing liquidity, especially in businesses that are government-facing, due to potential financial risks.
While large caps are attractive, our exposure remains at 50%, primarily because of our underweight stance on banks. We’re underweight in banking but overweight in non-lending financials. Our largest positions are in Pharma and Healthcare, with a rural focus in FMCG. This year, we plan to build more exposure in power, and consumer discretionary sectors, as these are expected to perform well structurally over the medium term.