As Market is very much volatile in Nature, so one must stick with the Larger Cap for lesser Downside. The reason behind the lower downside is that this type of company is more stable in nature and very easily recover from the losses. Another important thing is that there is low downside.
Example: TCS corrected in 2022 for 25% while Mindtree corrected for 50% in 2022 in the same war. This correction was due to two reasons. First was Higher Valuation and Second one was Ukraine Russia War, due to which this correction happened. Both companies TCS and Mindtree is good and performing well. But the question comes which is bigger in Market Capitalization. TCS is India’s 2nd largest company in terms of Market Capitalization. So, offcourse More Stability and giant in size will always fall less if we comparing with Mindtree which is much smaller company than TCS and chances of both downs and ups are much higher than TCS. Another benefit with company is that it falls less and quickly rise.
